Cabinet approves special window for funding of stalled affordable and middle-income housing projects
GN Bureau | November 7, 2019
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.
Even as Unlock enters the second phase, the number of Covid-19 infections continues to rise to record levels and India remains No 4 in the worldwide list, yet there is glimmer of hope: its recovery rate is also rising in tandem. There are 1,27,864 recovered cases more than the active Covid-1
A long-debated idea is finally coming to fruition as the Indian railways has decided to join hands with the private sector, in running some train services to begin with. The ministry of railways has invited ‘request for qualifications’ (RFQ) for private participation for operatio
Democracy in India is now taken for a fact, with an unstated assumption that all our institutions are democratic and hence often our successes and more often failures are attributed to ‘democracy’. However, a key frontier where democracy remains a challenge is that of local governments and that
India, facing China’s aggressiveness at border, has banned 59 smartphone apps, including TikTok, as they were indulging in activities harmful to India’s sovereignty and integrity. The reason cited was: “in view of information available they are engaged in activities which [
The launch of India’s first human space mission, ‘Gaganyaan’, will not be affected by Covid-19 and preparations are going on in the right direction even amid the pandemic. This was disclosed by minister of state (independent charge) development of north eastern region (DoNE
For all intents and purposes, India is going to reset its relations with China and a subtle hint to this regard has been given by the Narendra Modi government after the deadly June 15/16 night face-off between the Indian army and PLA troops in the Galwan Valley in which 20 Indian soldiers lost their lives.