Finance Minister announces Rs 20,000 cr stress fund to complete stalled projects

Location

Finance Minister announces Rs 20,000 cr stress fund to complete stalled projects

The estimated fund will not cover the projects affected by Non-Performing Assets (NPA) and National Company Law Tribunal (NCLT) issues.

Finance Minister announces Rs 20,000 cr stress fund to complete stalled projects

Finance minister, Nirmala Sitharaman, on Saturday announced stress fund of Rs 20,000 crore to complete stalled housing projects. However, the estimated fund will not cover the projects affected by Non-Performing Assets (NPA) and National Company Law Tribunal (NCLT) issues.

Homebuyers in Noida, Greater Noida and other parts of Delhi-NCR are the most affected with developers like Jaypee Infratech, Amrapali and Unitech. They are waiting to get possession of their flats for nearly a decade.

“A special window to provide last mile funding for housing projects which are non-NPA and Non-NCLT projects and are networth positive in the affordable and middle-income housing category will be setup,” said Nirmala Sitharaman, while addressing a press conference on Saturday.

The finance minister stated that the objective is to focus on the construction of unfinished units that number around 3.5 lakh units. “Rs 10,000 crore to be contributed by the government and roughly the same amount by the outside investors,” she said.

She further stated that the government has consulted with the home buyers, who have paid their advances and sitting without knowing what to do, and promoters that are sitting with no money to complete their projects.

Housing and Urban Affairs Minister, Hardeep Singh Puri, who was also present at the conference later said, “Remedial measures would be taken on the three big real estate projects in Delhi-NCR which are Unitech, Amrapali and Jaypee.”