Boost for realty: Govt, SBI, LIC create Rs 25k-cr fund for stalled projects

Move comes a day after Finance Minister Nirmala Sitharaman announced the government was readying more reform measures to boost economy

8:50 PM

It is now up to SBI to set up a team and start the process. The govt has done a good job by giving boost to the real estate sector. NBCC will complete JP and Amrapali projects as this fund is not meant for these projects: Samir Jasuja, Propequity

8:43 PM

It is important that funds from AIF goes to projects stuck in NCLT and NPA: Keki Mistry, VC & CEO, HDFC

8:39 PM

Projects that need less support will move quickly. RERA data will come in handy to do this: Satish Magar, CREDAI

8:38 PM

The priority must be to complete those projects that have at least started. This will help sell unsold inventory and will also help bring in consumer money: Samir Jasuja, Propequity

8:35 PM

There is no homebuyer in the country who doesn't need help: Nirmala Sitharaman

8:34 PM

NPA and NCLT stuck projects needed the boost. It is a good initiative by FM Sitharaman.: Satish Magar, CREDAI

8:31 PM

WIth the inclusion of projects under NPA and NCLT proceedings, almost 80 per cent projects in NRC and Mumbai will come to life: Samir Jasuja, Propequity

8:26 PM

The fund is expected not only to support the real estate sector but also generate commercial return for its investors. 

8:26 PM

The special window has been structured as an AIF to pool investments from other government-related and private investors including public financial institutions, sovereign wealth funds, public and private banks, domestic pension and provident funds, global pension funds and other institutional investors, etc.

8:25 PM

Criteria for availing of funding

The special window of AIF will provide last-mile funding to projects that meet the following criteria:
 

• Net-worth positive
 

• Affordable and middle-income housing project
 

• On-going projects registered with RERA
 

• Reference by existing lender
 

• Will include stressed projects classified as NPA and those in NCLT

8:17 PM

Relief is not limited to a Rs 10,000-crore or Rs 25,000-crore support. It's a window we have opened for support until such time as stalled projects come out of distress, says FM Sitharaman

8:08 PM

The total size of the fund, after investment from SBI and LIC to be Rs 25,000 cr, says FM Sitharaman

8:08 PM

FM Sitharaman says she has already spoken to State Bank of India and Life Insurance Corp

8:07 PM

AIF to exclude projects that have been declared liquidation-worthy by NCLT

8:06 PM

Funding on priority for commercially viable projects. Those where work has not started will not be elegible for funding, says FM Sitharaman.

8:05 PM

Govt moves aimed at helping middle- and low-income housing projects that are stuck

8:05 PM

RERA-registered incomplete real estate projects to be assessed for net worth. The company executing the project must be net worth-positive to avail of funding

8:04 PM

Projects under NPA, NCLT proceedings can also get funding

8:03 PM

Govt to invest Rs 10,000 crore in the AIF. State Bank of India (SBI), Life Insurance Corporation (LIC) and others to also pool funds

8:00 PM

Govt announces Rs 10,000-cr AIF to help real estate projects

The Union Cabinet has cleared opening of a special window of alternative investment fund (AIF), with a govt corpus of Rs 10,000 crore. The move will enable the delivery of 1,600 low- and middle-income real estate projects that are stuck 

7:59 PM

1,600 housing projects, with 458,000 housing units stalled

Finance Minister Nirmala Sitharaman says 1,600 housing projects, with 458,000 housing units, have been stalled