Govt to shells out Rs 10,000 crore to boost affordable housing: Sitharaman
New Delhi, Sep 14: With a focus on the construction of unfinished units, Finance minister Nirmala Sitharaman on Friday announced a Rs 10,000 crore special window to provide last-mile funding for the completion of ongoing housing projects which are not NPAs or facing bankruptcy proceedings under NCLT.
"They will identify such projects that are affordable and middle-income projects that are of low funding and nearing completion so that people invested in houses and waiting for possession do not have to wait longer," the finance minister said.
Announcing the measure, Sitharaman said the government will contribute Rs 10,000 crore for the special window and roughly the same amount is expected from outside investors.
This window will help in the completion of affordable and middle-income housing projects. The fund will be managed by professionals, the minister added. Sitharaman also said the interest rate on housing building advance will be lowered and linked to the 10-year G-sec yields.
Government announces new measures to boost housing and facilitate home buyers— PIB India (@PIB_India) September 14, 2019
External Commercial Borrowing guidelines to be relaxed
Encouraging Govt Servants to buy houses, Union Minister @nsitharaman announces lowering of Interest rate on House Building Advance shall be pic.twitter.com/04FvhlwnyN
"Projects that are 60 per cent complete shall get last mine funding through special window. We will not interfere with the projects that are under NCLT. The tribunal will decide what has to be done. About 3.5 lakh dwelling units to benefit from this," says Sitharaman said.
"Government servants contribute to a major component of demand for houses. This will encourage more government servants to buy new houses," she said. External commercial borrowing (ECB) guidelines will also be relaxed to help housing developers obtain overseas funds.
ECB guidelines will be relaxed to facilitate financing of homebuyers who are eligible under Pradhan Mantri Awas Yojna, in consultation with the central bank.