Govt clears Rs 540 cr from stress fund for stalled housing projects

The government on Friday said it has cleared investments of over Rs 540 crore in stalled residential properties that will benefit 1,800 homebuyers.

"Special Window clears projects with capital commitment of more than Rs 540 Crores. Disbursements started which will provide relief to 1800 home buyers and unlock Rs 3000 Crores of invested capital," the Finance Ministry said in a tweet.

Further, preliminary clearance has been given for due diligence to 14 projects with capital commitment of Rs 2,500 crore that will provide relief to 10,000 home buyers and release Rs 12,500 crore of invested capital, it said, adding that around 40 more deals under active consideration for investment.

The Central government last year announced a Rs 25,000 crore fund to help complete over 1,500 stalled housing projects, including even those that have been declared NPAs (non-performing assets) or admitted for insolvency proceedings. The move is likely to help 4.58 lakh housing units across the country with only RERA-registered projects with positive net worth will be provided funds.

The Rs 25,000 crore fund is in form of alternative investment fund (AIF). The Centre is infusing Rs 10,000 crore into this stress fund, while the remaining being provided by state insurer LIC and SBI. The AIF is being managed by SBI Caps.

 



Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel