The Central government has announced a fund of Rs.10,000 crore for the stalled real estate or housing projects across the country. The move aimed to boost the ailing real estate sector. It has been struggling with projects due to the liquidity crisis. The announcement was made by the Union Finance Minister Nirmala Sitharaman. The Union Cabinet gave its approval to provide priority debt financing for the completion of stalled projects in the affordable and middle-income housing segment.
The government will infuse Rs.10,000 crore into an Alternative Investment Fund (AIF). Apart from this, the State Bank of India (SBI) and Life Insurance Corporation (LIC) will contribute Rs.15,000 crore along with the government’s fund.
Real estate sector:
India’s real estate sector started in early 2017 after demonetization. It was affected severely in 2018 after major infrastructure IL&FS defaulted on loan payments. It totally crippled non-banking financial companies (NBFC) sector, including housing finance companies (HFC).
The total stalled budget projects in the Mumbai Metropolitan Region (MMR) and the National Capital Region (NCR) are the highest with at least 4,00,000 units. The approximate value of projects running behind schedule in MMR and NCR adds up to Rs.3,60,000 crore.