The Union Cabinet on Wednesday approved a plan of setting up Rs. 25,000 crore alternative investment fund (AIF) to complete the stalled projects.
While the centre will invest Rs. 10,000 crore in the fund, the rest 15,000 crore will come in from State Bank of India, Life Insurance Corporation of India and other such institutions, said finance minister Nirmala Sitharaman after a Union cabinet meeting on Wednesday.
Incomplete housing projects worth less than 2 crore per unit in Mumbai, Rs. 1.5 crore in other metros, including the national capital region (NCR), and Rs. 1 crore in other parts of the country will benefit from the move, said Sitharaman.
She added that that only those projects that are net worth positive and registered under RERA or The Real Estate (Regulation and Development) Act will receive the funding. Stuck projects classified as Non Performing Assets and those undergoing resolution under the National Company Law Tribunal will also benefit. When Sitharaman last announced a package for the housing sector in September, such projects were barred from availing the benefits of the scheme.
Around 1,600 projects involving 4.58 lakh housing units are stalled due to lack of funds.