Things You Need to Know About the 25 Thousand Crore Real Estate Bailout Fund
Post by : favouritehomes
To rescue the current state of the real estate industry, the government recently announced a much-needed bailout fund of Rs 25,000 crores. Out of this, the government is expected to provide Rs 10,000 crores while other entities like SBI and LIC are to chip in the remaining Rs 15,000 crores.
This amount will be parked in an Alternative Investment Fund (AIF) and is expected to provide relief to some 1,600 residential projects providing relief for 4.6 lakh residential units that are stuck for lack of funding across 7 metro cities in the country. The AIF will provide relief to incomplete or stalled projects, projects classified as non-performing assets or projects facing insolvency in the affordable and mid-income sectors. Data also suggests that around 55,000 to 80,000 crores are totally needed to complete all the stalled projects in the country. Here’s a look at the criteria for availing the AIF fund:
- Project is registered with RERA
- Projects that have a positive net worth
- Projects stalled due to cash crunch
- Projects in the affordable and mid-income categories
- Projects stalled very close to completion
- Projects under National Company Law Tribunal (NCLT) hearing
This slowdown in the realty sector has also led to up to 5% slowdown in the associated steel, cement, electricity, etc, sectors too. By addressing this cash crunch in the real estate industry, an improvement in these associated sectors is also expected. To ensure transparency for distressed housing projects, this booster fund will be registered with SEBI and SBICAP Ventures will monitor its correct usage. The unfinished housing units worth less than 2 crores in Mumbai will be eligible for this aid; in Delhi, Bangalore, Pune, Chennai, Hyderabad, Ahmedabad and Kolkata it’s meant for aiding units costing 1.5 crores. In other cities in the country, this fund can be used for units worth up to 1 crore in value.
Under this special window, the government aims to boost demand for cement, steel and other affiliated sectors associated with the housing sector. This is aside from creating more job opportunities. Other than this, a greater focus on transparency and forthright policies are some of the other factors expected to boost the flagging real estate industry.
However, if you are planning on buying homes in Trivandrum, you don’t have to worry as premium builders like Favorite Homes have your back. There are a number of luxurious ready-to-move-in apartments and villas to choose from here. Do check them out while stocks last!