Win-win for real estate developers; FinMin manages priority debt finance for stalled housing projects

News Bharati    07-Nov-2019
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New Delhi, November 07: Concerning for more than 1600 stalled housing projects and 4.58 lakh stuck housing units, Finance Minister Nirmala Sitharaman on Thursday has decided to create a Special Window to provide priority debt financing for completion of these said projects.

 
 
"Government will commit Rs 10,000 crore, SBI and LIC will also contribute", she said adding that the structured Alternative Fund would aid covering the incomplete projects in Mumbai have unit project cost less than Rs 2 crore.
 
However, she said that the unit projects costing less than Rs 1.5 crore in NCR, Chennai, Kolkata, Hyderabad, Bengaluru, Ahmedabad, Pune and that less than Rs 1 crore anywhere else in India would be funded through AIF.
With this, the two earlier conditions that, a project should not be NPA and non NCLT can only benefit, has been withdrawn by the Centre. "Even if a project has been declared Non Performing Asset but liquidation has not been announced it will be eligible for this provision", she said.
 
Earlier the day, the Finance Minister had noted that the government would put in Rs 10,000 crore in this alternative investment fund (AIF) while SBI and LIC would provide Rs 15,000 crore, taking the total size to Rs 25,000 crore.