The cabinet on Wednesday approved a fund of Rs 25,000 crore for the stuck housing project across the country. Finance Minister Nirmala Sitharaman gave this information. He told that the government will provide 10,000 crore rupees in this Alternative Investment Fund (AIF). SBI and LIC will provide the remaining Rs 15,000 crore.
The Finance Minister said that 1,600 housing projects of 4.58 lakh houses across the country are stuck. Funds will be provided from AIF for these. This step has been taken to provide employment opportunities and to increase demand in cement, iron, steel industry.
The amount of AIF will increase even more. It is also expected to be funded by sovereign and pension funds. According to the Finance Minister, NPAs have been declared and projects going through insolvency process will also get the benefit of this fund.
Sentiments of real estate sector will improve: Experts
On September 14, the Finance Minister announced a special window to fund the stuck projects. At that time the NPA of the project and the condition of not being in the bankruptcy court, but now they have been scrapped. The move has been welcomed by CREDAI, an association of real estate developers. He says that now only the condition of being networth positive is left. The early availability of funds and effective decisions regarding the eligibility to take advantage of this scheme will solve the problems of home buyers. Anuj Puri, chairman of property brokerage firm Enarock, said the government's decision would improve sentiment in the real estate sector.
