Chennai: The Union Finance Minister Nirmala Sitaraman announced Rs. 10,000/- crores incentives to the realty sector. Nirmala Sitaraman announced these incentives to the realty sector for incomplete affordable and middle income housing. Speaking to the media persons in a press conference she said that the Rs. 10,000/- crore fund will be provided to project that are 60% complete and those looking for last stage funding.

          The special window will fund net worth positive housing projects that are not NP’s and that are not before the NCLT. She also said that the govt will hope outside investors match their Rs. 10,000/- crore.

       The top ten cities have a stock of 5.6 lakh delayed housing worth of Rs. 4.5 lakh crore. The ata outside these cities is not known. “The Minister said the fund benefit around 3.5 lakh units. Each would probably get around Rs. Three lakh for completion, which is not enough. Even if it gets another Rs. 10,000 crore from private investors, it will be just Rs. Six lakh per unit,” said Mr. Samantak Das, Chief economist and head of research & REIS, JLL India.

        “Even the government’s fund of Rs. 10,000 crore for affordable middle income housing projects will have limited impact since the majority of stalled projects are because of liquidity and will be NPA’s, said Mr. Satish Magar, President, Credai.

      The government will relax external commercial borrowings (ECBs) guidelines to facilitate financing of home buyers who are eligible under the PMAY, in consultation with RBI. Interest rate on house building advance will be lowered and linked with 10-year GSec yields. This will encourage government officials to buy houses, she said.