Finance Minister Nirmala Sitharaman today said that revival of the stressed real estate projects will improve the economic sentiment in the country. Sitharaman also said that revival of stalled projects will also help improve the portfolios of banks and non-banking finance companies (NBFCs).
FM made the remark during a virtual event in which possession was handed over to homebuyers of a Mumbai-based stalled residential realty project, Rivali Park, completed by the government's stressed asset fund -- Special Window for Affordable & Mid-Income Housing (SWAMIH). This is the first residential project completed by SWAMIH.
The Union Cabinet had approved the fund in November 2019 with a total corpus of Rs 25,000 crore and SBICAP Ventures was appointed as investment manager to the fund.
"Government stepped in to provide funding to the stressed affordable and mid-income housing projects thereby giving relief to the home buyers who had invested their hard earned savings. Once these homes are constructed and completed, a large amount of capital locked up in these projects will be released," Sitharaman said.
"It will provide employment to construction workers and will provide impetus to the allied industries such as steel and cement. Further, it will improve portfolios of banks and NBFCs and significantly improve the economic sentiment in the nation," Sitharaman said.
SBI Chairman DK Khara, who also attended the event, said SBI is fully committed to the government's vision to revive the real estate sector and provide relief to homebuyers.
SWAMIH fund has approved 72 projects for completion of 44,100 housing units, while preliminary approval has been granted to 132 projects covering 72,500 units. The fund is targeting to complete 1,16,600 units at a sanctioned cost of Rs 18,546 crore.