Finance Minister Nirmala Sitharaman on Wednesday (November 6) announced ₹10,000 crore impetus to the housing and real estate market to revive over 1,600 housing projects covering 4.58 lakh units which are stuck at the moment.
Addressing a press conference, the finance minister said that cabinet approved establishment of ‘Special Window’ to provide priority debt financing for completion of stalled housing projects in the affordable and middle-income housing sector.
A total of ₹10,000 crore under an Alternative Investment Funds (AIF) scheme was infused for rescuing at least 1,600 housing projects.
“For purposes of funds to be set up, government shall act as sponsor and total funds committed by government would be upto ₹10,000 crore. Funds will be set up as Category-II Alternate Investment (AIFs) Fund registered with Securities and Exchange Board of India (SEBI),” she added.
Apart from government, Life Insurance Corporation and State Bank of India will infuse ₹25,000 crore.
She added that, this special window will provide funding to projects that meet following criteria – net-worth positive, affordable and middle-income housing project, on-going projects registered with RERA, reference by existing lender, will include stressed projects classified as NPA and those in NCLT.
The move is aimed at reviving the real estate sector and generating considerable employment.