Finance Minister Nirmala Sitharaman announced an alternative investment fund to help the real estate sector finish pending housing projects. Government will infuse Rs 10,000 crore in this fund. SBI, LIC and other sovereign funds will add to this fund to take it to Rs 25,000 crore and beyond.
Follow BusinessToday.In for Live updates from Cabinet briefing by FM Sitharaman:
08:11 pm: Banks cannot use the escrow account to balance out pending dues of builders, clarifies FM Sitharaman.
08:10 pm: Risk assessment for banks has been worked out, says FM Sitharaman.
08:05 pm: Projects declared NPA or those not declared liquidation-worthy by NCLT will also benefit from this initiative.
08:05 pm: RERA-registered incomplete projects with positive net worth every unit valued at less than Rs 2 crore in Mumbai Metropolitan Region, Rs 1.5 crore in Delhi-NCR, Chennai, Kolkata, Pune, other big cities and Rs 1 crore in any other part of India will be funded till the finishing stage through an escrow fund, FM Sitharaman said.
08:04 pm: This fund is meant to help homebuyers facing troubles due to 4.58 lakh housing stuck in 1,600 stalled residential projects.
08:00 pm: As a measure to help hoembuyers, FM Sitharaman announces an alternative investment fund.
"We have come with a special window which is to be structured as an alternative investment fund (AIF), which will pool all these investments. Government will give Rs 10,000 crore. We have already spoken with institutions like SBI, LIC and so on, who together will also put money which will touch Rs 25,000 crore. This will be kept open. Several sovereign funds have also expressed interest to come into it.Gradually, we will keep adding to the AIF corpus," says FM Sitharaman.
Copyright©2022 Living Media India Limited. For reprint rights: Syndications Today