Govt to provide 'priority debt financing' for completion of stalled housing projects
New Delhi, Nov 06: Union Finance Minister Nirmala Sitharaman on Wednesday announced the series of decisions taken to address the issues faced by the real estate sector.
She said that rough estimate has shown that over 1600 housing projects which are stalled.
The FM said the government will establish a 'special window' to provide priority debt financing for completion of stalled housing projects in the affordable and middle-income housing sector.
"Cabinet approves the establishment of 'Special Window' to provide priority debt financing for completion of stalled housing projects in the affordable and middle-income housing sector," Sitharaman said.
On Tuesday, Sitharaman had said that the government and the Reserve Bank of India (RBI) are in the process of resolving the issues faced by the real estate sector.
"An AIF (asset alternative fund ) will be created. The government will put in Rs 10,000 crore and others, such as SBI and LIC, will create funds of Rs 25,000 crore in all," she told a press briefing after a meeting of the Union Cabinet.
"This investment will be used to complete housing units worth less than Rs 2 crore in Mumbai, Rs 1.5 crore in Delhi-NCR, Chennai, other metros, and Rs 1 crore in other cities," she added.