A MOU worth Rs 1 lakh crore was signed yesterday between the Rajasthan government and the Housing and Urban Development Corporation Limited (HUDCO). The agreement was officially signed on July 24, 2024, in Jaipur. The MoU was signed by Shri Sanjay Kulshrestha, CMD of HUDCO, and Shri Debasish Prusty, IAS, Secretary to the Government of Rajasthan’s Finance (Budget) Department. Shri Bhajan Lal Sharma, the Honorable Chief Minister of Rajasthan, attended the ceremony. Moreover, Diya Kumari, Deputy chief minister was also present in the ceremony.

What is an MOU?

A MOU is a short form of a Memorandum of Understanding. A MOU is a formal document that outlines the terms and details of an agreement between two or more parties. It is not legally binding but indicates the willingness of the parties to move forward with a contract. MOUs are often used in international relations, business agreements, and collaborations. MOUs can help clarify the intentions of the parties and ensure mutual understanding before a formal contract is drafted.

What is the purpose of this MOU?

With this MOU, Rajasthan’s Water and irrigation situation will soon improve. Furthermore, the path to getting cheap electricity in the state will be cleared. After signing this MoU, the Rajasthan government will get a loan of Rs 1 lakh crore. Under which, in the coming 5 years, the Rajasthan government will complete the work of infrastructure projects like water, irrigation and electricity.

HUDCO will provide a loan of Rs 20,000 crore every year to the Rajasthan government for the successful completion of these projects. After signing the MoU, HUDCO on Wednesday handed over a check of Rs 1,577 crore for the Jal Jeevan Mission to Rajasthan Water Supply and Sewerage Corporation (RWSSC).

The government committed to strengthening drinking water irrigation infrastructure

On this occasion, Rajasthan CM Bhajanlal Sharma said that the state government is committed to making Rajasthan a leader in the field of energy and strengthening the drinking water and irrigation infrastructure. The State Government will ensure that all necessary financial resources are allocated for this resolution.

Addressing the virtual inauguration ceremony of the Jaisalmer Solar Power Plant at the Chief Minister’s Office, CM Bhajan Lal said, that the production of renewable energy from the 400 MW solar power plant in Jaisalmer of the renewable energy producing company ReNew is a step towards making the state self-reliant. It is an important step. Moreover, production of the remaining 200 MW will start by October.

CM Bhajan Lal said, that adding renewable capacity will reduce the cost of electricity. Which will further reduce rates for electricity consumers. Moreover, it will increase the savings of the government. Moreover, this solar plant will be able to supply power to Rajasthan Discom at very low rates. Furthermore, significant progress has been made in ensuring uninterrupted supply of electricity and water.