Govt sets up Rs 25,000 crore alternative investment fund to revive realty sector
A survey showed that around 4.58 lakh housing units were stuck in India.
While the government has earmarked Rs 10,000 crore towards the fund, Life Insurance Corporation of India and State Bank of India would also infuse money.
Briefing media after a Cabinet meeting, Nirmala Sitharaman said an internal survey showed that around 4.58 lakh housing units were stuck in India with over 1,600 realty projects stalled.
The government will act as the sponsor of the fund and infuse funds up to Rs 10,000 crore. The AIF will provide relief to developers with unfinished projects and ensure delivery of homes to buyers.
SBICAP Ventures will be the investment manager for the fund.
The Cabinet also approved an establishment of 'Special Window' to provide priority debt financing for completion of stalled housing projects in the affordable and middle-income housing sector.
Special Window to provide last mile funding to projects meeting these criteria:
- Net-worth positive
- Affordable & middle-income housing project
- On-going projects regd with RERA
- Reference by existing lender
- Include stressed projects classified as NPA & NCLT
The government expects the decisions will help relieve financial stress faced by large number of middle-class homebuyers who have invested their hard-earned money.
This is also expected to release large amount of funds stuck in these projects for productive use in the economy.