The Indian government decided to set up a Rs 20,000 crore stressed assets fund for those residential projects that are non-NPA and not under NCLT will provide relief to lakhs of homebuyers.
Realty firm welcomes this move but said the government should have done more to boost housing demand, property developers and consultants.
To provide relief to aggrieved homebuyers, the government will set up a special window to provide last mile funding for housing projects which are non-NPA and non-NCLT in the affordable and middle income category. In the fund, Rs 10,000 crore will be contributed by the central government and roughly the same amount will come from outside investors.
NAREDCO President Niranjan Hiranandani said the announcement of Rs 20,000 crore fund is a welcome step as it will ensure completion of many affordable and MIG projects stuck because of last-mile funding requirements.
On the rider that this fund will cater to only non-NCLT and non-NPA projects, he said this announcement will not solve the problem of delayed/ stalled projects and affected home seekers in locations like Delhi-NCR.
However, since the fund does not include projects that are under NPAs and NCLT, there is a possibility that not all homebuyers will get the said relief.
Also, the fund is for projects in the affordable and mid segment and to this effect homebuyers within the luxury segment may have to wait even further.