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Mega shopping fests to funding: Sops to boost exports, housing announced

The Press Information Bureau last night tweeted that Sitharaman will "announce important decisions of the government" at the conference in Delhi

Nirmala Sitharaman
Nirmala Sitharaman | Photo: ANI (Twitter)

Finance Minister Nirmala Sitharaman on Saturday announced revised priority sector lending (PSL) norms for exporters which will release an additional funding of Rs 36,000 crore to Rs 68,000 crore to them.

PSL norms for export credit have been examined and enabling guidelines are under consideration of the Reserve Bank of India, she said. "This will release an additional Rs 36,000 crore to Rs 68,000 crore as export credit under priority sector," Sitharaman told reporters here.

She also said export finance will be actively monitored by an inter-ministerial working group in the Department of Commerce. Also, Export Credit Guarantee Corporation (ECGC) will expand the scope of export credit insurance scheme.

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

Announcing the measure, Finance Minister Nirmala Sitharaman 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 housing projects. 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.