In a major move to provide relief to home buyers and the real estate sector, the union cabinet approved a ‘special window’ to provide priority debt financing for completion of stalled housing projects in the affordable and middle-Income Housing sector.
The government will act as the sponsor of the fund and infuse funds up to Rs 10,000 crore.
While addressing a press conference after the meeting, Finance Minister Nirmala Sitharaman said the fund will benefit developers with unfinished projects and ensure delivery of homes to buyers.
She said “There are also sovereign funds which are interested. The funds received from the corpus cannot be used to repay prior dues to banks.”
The ‘special window’ aims to provide funding to projects whose net-worth is positive, affordable and middle-income housing project and ongoing projects registered with RERA (Real Estate Regulation and Development Act).
Also, it will include stressed projects classified as NPA and pending in NCLT (National Company Law Tribunal).
She said over 1600 projects were stalled and 4.58 lakh housing units were stuck.
“The main intention is to complete the stalled projects in the affordable and middle-income housing category,” she said.
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