In her briefing to the media, FM Nirmala Sitharaman announced a slew of measures to reinvigorate the ailing realty sector and said that a special window will be set up for offering funds to the housing projects that have slowed down due to liquidity crisis. The scheme will be applicable to projects that are not in the NCLT and not non-performing assets. At the same time, these projects need to meet a requirement of positive net worth in the middle-income and affordable housing category.
The objection of the scheme lies in the completion of stalled housing units. And for the same government will make a contribution of Rs. 10,000 and almost the same contribution will come from outside investors.
The fund is likely to benefit as many as 3 lakh to 3.5 lakh projects all across the country.
Notably, the scheme will not be run by the government itself and expert professional will be appointed for the same, who will engage in the identification of such middle income and affordable scheme where 60% of the work has been completed and the remaining 40% is not done to cashflow issues.
So, with the move, the middle income and affordable housing groups, where people are waiting for houses to be delivered can now find relief, Sitharaman said.
Further, as the government employees constitute a major chunk accounting for the demand for housing, these would get house-building advance at lower rates. Government employees contribute to a major component of demand for housing and it will encourage more government employees to buy new houses, said the FM.
The interest rate on housing advance for government employees will be reduced and linked to 10-year G-sec yields.
Also, on the sidelines, the FM said that external commercial borrowing (ECB) rules shall be eased for lending entities for financing of home buyers in consultation with the apex bank who are eligible as per the terms laid down in the Pradhan Mantri Awas Yojana.