The Modi government's Rs 25,000 crore special fund for the real estate sector will give priority to housing projects that are closer to finalisation in affordable and mid-income categories. As per industry estimates, around 90 per cent of the stalled projects fall under these two segments. There are total 1,509 stalled housing projects in India, which comprise around 4.58 lakh housing units.
The government on Thursday said the proposed special window or the alternative investment fund (AIF) will also look at projects that are non-performing assets (NPAs) or undergoing National Company Law Tribunal (NCLT) proceedings. The housing projects can commence construction immediately after funds are made available.
According to the finance ministry: "Any or all projects undergoing corporate insolvency resolution process before the NCLT can be considered for funding through the Special Window upto the stage where the resolution plan for such insolvency resolution process has not been approved/rejected by the committee of creditors."
"This fund would provide relief to developers that require funding to complete a set of unfinished projects and consequently ensure delivery of homes to the home-buyers," it added.
The maximum finance for any single project will be Rs 400 crore.
Criteria for selection of projects for funding
- Priority for projects very close to completion
- Stalled for lack of adequate funds
- Affordable and middle income category
- Net worth positive projects (including NPAs and projects undergoing NCLT proceedings)
- RERA registered
Edited by Chitranjan Kumar