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Rs 10,000 crore window to extend funding to stranded housing projects: FM

The fund will be managed by professionals, the finance minister added

Press Trust of India 

Nirmala Sitharaman
Nirmala Sitharaman | Photo: ANI (Twitter)

The government on Saturday announced a Rs 10,000 crore special window to provide last-mile funding for completion of ongoing which are not NPAs or facing bankruptcy proceedings under NCLT.

Announcing the measure, Finance Minister said the government will contribute Rs 10,000 crore for the special window and roughly the same amount is expected from outside investors.

This window will help in completion of affordable and middle income

The fund will be managed by professionals, the minister added.

Sitharaman also said the interest rate on housing building advance will be lowered and linked to the 10-year G-sec yields.

"Government servants contribute to a major component of demand for houses. This will encourage more government servants to buy new houses," she said.

External commercial borrowing (ECB) guidelines will also be relaxed to help housing developers obtain overseas funds.

ECB guidelines will be relaxed to facilitate financing of homebuyers who are eligible under Pradhan Mantri Awas Yojna, in consultation with the central bank.

First Published: Sat, September 14 2019. 16:01 IST