Finance Minister Nirmala Sitharaman Saturday announced a special window to provide last-mile funding for the completion of ongoing housing projects which are not NPAs or facing bankruptcy proceedings under NCLT. While unveiling the third set of stimulus measures for the economy today, Sitharaman said the government will contribute Rs 10,000 crore for the special window and roughly the same amount is expected from outside investors.
“Projects that are 60 per cent complete shall get last mine funding through a 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,” she said.
The Union Finance Minister said that the window will help in completion of affordable and middle income housing projects. She added that the fund will be managed by professionals.
Besides this, External Commercial Borrowing (ECB) guidelines will also be relaxed to help housing developers obtain overseas funds.
The guidelines will be relaxed to facilitate financing of homebuyers who are eligible under Pradhan Mantri Awas Yojna, in consultation with the Central bank.
The minister also announced that the interest on Housing Building Advance shall be lowered and linked with the 10 Year G Sec Yields. As government servants contribute to a major component of demand for houses, this will encourage more government servants to buy houses.