Finance Minister: Rs 25,000 crore Fund for stuck Housing Projects
On November 7, 2019, Government of India announced the establishment of Rs 25,000 crore fund for home buyers whose money is stuck in stalled projects. According to the Ministry of Finance, there are over 1600 such projects comprising of 4.58 lakh housing units across the country. The “Special Window” will prioritize debt financing in the Affordable and middle-income housing sector.
About the fund
- Rs 10,000 crore is to be provided by GoI towards the fund. Other firms like LIC and SBI along with sovereign wealth funds and pension funds will contribute Rs 15,000 crore
- The fund is to be set up as Category II Alternate Investment Fund.
- The fund is to be registered with SEBI as an escrow account.
- Under the special window, the projects that have been declared as NPAs (Non Performing Assets) and other projects that are undergoing insolvency at NCLT are also allowed to be kick started
- The fund infusion will help provide employment to workers and also help restore trust between buyers and developers
- Reviving housing sector will increase demand for cement and iron and steel industries that will generate more employment
- The special window will help releasing the stress in other major sectors of the Economy
Category: Economy & Banking Current Affairs