The homebuyers and the Indian real estate sector, both have a reason to cheer as the Government plans to introduce a special window for stalled housing projects that is expected to be operational in two months. The Government also planned to disburse funds for the same from New year, Atanu Chakraborty, Economic Affairs Secretary said.
Chakraborty was quoted saying that, the Government hopes to welcome the New Year with the first disbursal of the Special window for stalled housing projects that will be operational in 2 months. He informed about this move while briefing about the figures for Q2 GDP figures.
The Narendra Modi-led Union Government has declared a package of Rs. 25,000 crore for the real estate market that is witnessing a nervous period.
Nirmala Sitharaman, Union Finance Minister had announced that the Government plans to offer impetus to the housing market for the revival of 1600+ stalled housing projects that comprise of 4.58 lakh units.
Earlier in November, Nirmala Sitharaman, the Union finance minister recently informed about the creation of a special window provision for the real estate sector. This decision is taken after the Government discussed the issue with RBI [Reserve Bank of India] and FM was quoted saying, they have initiated sustainable solutions to the homebuyers and plan to complete the stalled projects at the earliest to maximize benefit to the buyers.
The government also decided to form a Category-II Alternative Investments Fund (AIF) of approximately Rs. 25,000 crore to begin with. Under this, the Government will provide nearly Rs. 10,000 crore and financial aid will be offered to the stalled projects registered under the RERA Act with good net worth, Nirmala Sitharaman said.
She further said that there are more than 1,500 stalled projects across the country under which over 4.50 lakh residential units are incomplete and this assistance will be of great help to them. But the affordable homes will only be benefitted and the price bracket for the same is yet to be decided. Sitharaman also said that the same had been discussed with SBI, LIC and others for participation in Alternative Investments Fund [AIF] and this is only an initial investment. After this, various sovereign funds who have shown interest in this will be taken on-board.