Centre's nod to Rs 25,000 crore fund to help stalled housing projects
New Delhi, Nov 6: The government on Wednesday approved a Rs 25,000 crore fund to help complete over 1,600 stalled housing projects, including ones that have been declared bad loans or admitted for insolvency proceedings, as it looks to boost growth by steering consumption in real estate and associated sectors.
Continuing with steps she began announcing within a month of Parliament approving her maiden Budget, Finance Minister Nirmala Sitharaman said the Alternative Investment Fund (AIF) will comprise Rs 10,000 crore coming from the government and the remaining being provided by state insurer LIC and the country's largest lender SBI.
The AIF, which was first announced by Sitharaman on September 14, will act as a 'special window' to provide loans to over 1,600 incomplete affordable and middle-lower income housing projects.
In all, 4.58 lakh housing units are being targeted to be completed with a view to generate employment as well as revive demand of cement, iron and steel industries.
Sitharaman said the scheme, approved by the Union Cabinet headed by Prime Minister Narendra Modi, is a modified version of the September 14 plan.
The key change is allowing the AIF to fund projects that lenders may have declared as non-performing assets (NPAs) or which have been dragged to the NCLT for insolvency proceedings.
She, however, said only RERA-registered projects with positive net worth will be provided funds.
The AIF funds will be released in stages through an escrow account and will be contingent upon completion of the approved phase, she said, adding the size of the fund may be increased with the participation of sovereign and pension funds.
The fund will be managed by SBI Caps.
Sitharaman said the government is seized of the problem faced by homebuyers who are forced to pay EMIs on loans taken for buying homes but have not yet got possession and continue to shell out both loan installments and rent.
Meanwhile, real estate developers' association CREDAI welcomed the move saying, it will solve the long-pending problem of homebuyers.
"It's a very welcome change from the initial announcement (of September 14). Now the only criteria for eligibility is networth positive projects... this will ensure that the fund is actually deployed to complete incomplete projects which are even NPA or also in NCLT.
"We are certain that a majority of stuck homebuyers will benefit from the announcement of a Rs 25,000 crore stress fund which is going to be increased in value if needed," CREDAI Chairman Jaxay Shah said.
Quick deployment of money and efficient decision making for qualification of projects will solve the long pending problems of homebuyers, he said.
Property brokerage firm Anarock's Chairman Anuj Puri said the move will bring huge relief to stuck homebuyers and boost sentiment in the sector which is facing a demand slowdown.
Let the Truth be known. If you read VB and like VB, please be a VB Supporter and Help us deliver the Truth to one and all.
Youngsters should be made aware of UP's condition before 2017: Adityanath
Gorakhpur (UP) (PTI): Uttar Pradesh Chief Minister Yogi Adityanath on Friday urged intellectuals and opinion makers to educate the younger generation about the condition of the state before 2017 and the transformation witnessed in recent years.
Addressing the "Prabuddh Samvad" programme organised by the BJP's Rapti Nagar Mandal at a marriage hall in Gorakhpur, Adityanath said youngsters must be made aware of the "era of riots, curfews, lawlessness and appeasement politics", so that such a situation does not return.
He said many youngsters today were too young to understand the condition of Uttar Pradesh 10 years ago. "If we do not tell the present generation what the state faced earlier, they will forget the consequences of misgovernance and appeasement politics," he said.
The chief minister alleged that before 2017, the state suffered from "goondaism, corruption, anarchy and exploitation by regional parties". He claimed that traders were forced to pay the "goonda tax", women felt unsafe and employment opportunities were limited, forcing many to migrate.
Highlighting the changes under the present government, Adityanath said Uttar Pradesh now offers development, security and employment opportunities.
Referring to Gorakhpur, he said the fertiliser plant has resumed operations, the All India Institute of Medical Sciences (AIIMS) is functioning smoothly and the Baba Raghav Das (BRD) Medical College has improved healthcare services.
The chief minister added that industrial projects worth Rs 15,000 crore have generated jobs for nearly 50,000 youngsters in eastern Uttar Pradesh.
Praising Prime Minister Narendra Modi, Adityanath said India has emerged as a global inspiration under his leadership.
Referring to global tensions and rising fuel prices, he appealed to people to conserve fuel and adopt alternatives, such as solar energy, public transport, electric vehicles and carpooling.
Calling intellectuals the "opinion makers of the society", he said teachers, doctors, lawyers and entrepreneurs have a responsibility to guide people in the right direction. He also urged citizens to remain balanced during both favourable and challenging times.
Local MP Ravi Kishan and Bharatiya Janata Party (BJP) MLC Dharmendra Singh also addressed the programme. Mayor Manglesh Srivastava and several BJP leaders, professionals and social workers were present.
