Special push on the housing front can aid economy too

Cabinet approves special window for funding of stalled affordable and middle-income housing projects

GN Bureau | November 7, 2019


#nirmala sitharaman   #union cabinet   #economy   #real estate   #Housing   #home buyers  
A representative image: Photo: Governance Now
A representative image: Photo: Governance Now

The real estate sector is arguably the most representative of the slowdown in the economy. The government has moved to offer it a helping hand with a Rs 10,000 crore package, which has the potential of lifting the sagging fortunes of a large number of allied industries.

The union cabinet on Wednesday approved the establishment of a ‘Special Window’ fund to provide priority debt financing for the completion of stalled housing projects that are in the ‘affordable and middle-income housing’ sector.

For the purposes of the fund, the government shall act as the sponsor and the total commitment to be infused by it would be up to INR 10,000 crore, an official note said. The fund will be set up as a Category-11 Alternate Investment Fund (AIF) debt fund registered with SEBI and would be professionally run. For the first AIF under the Special Window, it is proposed that SBICAP Ventures Limited shall be engaged to be the Investment Manager.

This fund would in turn provide relief to developers that require funding to complete a set of unfinished projects and consequently ensure delivery of homes to the home buyers.
 
Since the real estate industry is intrinsically linked with several other industries, growth in this sector will have a positive effect in releasing stress in other major sectors of the Indian economy as well.
 
Finance minister Nirmala Sitharaman had on September 14 announced that a special window for affordable and middle-income housing will be created. This special window will provide last mile funding for housing projects which are stressed.
 
Subsequently, Inter-ministerial consultations and several stakeholder consultations were held with the housing industry including housing finance companies, banks, NBFCs, investors, and real estate developers. Problems being faced by home buyers, developers, lenders, and investors were ascertained that could be addressed through the special window.

Comments

 

Other News

`Justice, liberty, equality and fraternity are the soul of our Constitution`

The President of India, Droupadi Murmu, addressed Members of both Houses of Parliament in the Central Hall of Samvidhan Sadan on Wednesday, as the nation celebrated the 11th Samvidhan Divas with great fervour and enthusiasm. Vice-President of India and Chairman, Rajya Sabha, C. P. Radhakrishnan also addres

`Our Ram connects not through differences, but through emotions`

Marking a momentous occasion in the nation’s socio-cultural and spiritual landscape, PM Narendra Modi ceremonially hoisted a saffron flag on the Shikhar of the sacred Shri Ram Janmbhoomi Temple in Ayodhya, Uttar Pradesh on Tuesday. The  Dhwajarohan Utsav symbolises the completion

Rethinking policy framework to address animal-human conflict and animal welfare

Animal welfare requires as much a structured policy approach as do other sectors in India. Conflict that exists today is due to lack of an integrated policy approach which in turn exacerbates the conflict and instigates public health crises. The Indian Constitution already recognises the importance of anim

Mobile phones in classroom: redirect, not eliminate

In this era of AI and classrooms filled with students glued to their cellphones, there is a need to focus on redirecting, but not eliminating, the distraction. While there is no doubt that we need to go back to the older ways of teaching such as taking oral viva exams, practicing ‘sthithprajana&rsquo

Four Labour Codes come into effect to simplify, streamline labour laws

Four Labour Codes - the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020 and the Occupational Safety, Health and Working Conditions Code, 2020 have come into effect , rationalising 29 existing labour laws. By modernising labour regulations, enhancing workers` welf

Governance as ‘cyborg’: Rethinking AI rules through philosophical lens

In the world of science fiction, the cyborg, a hybrid of human and machine, often evokes fascination and fear. However, American scholar Donna Haraway conceptualises cyborg as more than a futuristic body; it is a philosophical lens, a way of thinking about identity, agency, and responsibility in a world wh

Visionary Talk: Amitabh Gupta, Pune Police Commissioner with Kailashnath Adhikari, MD, Governance Now





Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter