Nirmala Sitharaman said the amount of AIF will increase further. The govt is also expected to invest money through sovereign and pension funds.
New Delhi| The Union Cabinet on Wednesday approved a Rs 25,000 crore fund for stuck housing projects across the country. Finance Minister Nirmala Sitharaman informed in a press conference. She said that the government will provide Rs 10,000 crore in this Alternative Investment Fund (AIF). The remaining Rs 15,000 crore will be provided by SBI and LIC.
The Finance Minister said that 1,600 housing projects of 4.58 lakh houses across the country have been stalled. Funds will be provided to AIF for these. This step has been taken to provide employment opportunities and increase demand in the cement, iron, steel industry.
The finance minister said: Sovereign and pension funds are also expected to invest money
The amount of AIF will increase further. The govt is also expected to invest money through sovereign and pension funds. According to the finance minister, the NPA has been declared and the project going through the bankruptcy process will also benefit from this fund.
Real estate sector sentiment will improve: Expert
The Finance Minister announced on September 14 to create a special window for funding the projects stuck. At that time the NPA and the bankruptcy of the project were not in the court, but now they have been abolished. The move has been welcomed by the Credit Estate Association of Real Estate Developers. He says that now only the condition of being networth positive is left. Effective decisions regarding the availability of funds and the merits of taking advantage of this scheme will solve the problems of home buyers. Anuj Puri, chairman of property brokerage firm Enrock, said the government’s decision would improve the sentiment of the real estate sector.