Nirmala Sitharaman
Finance Minister Nirmala Sitharaman at a press conference | Suraj Singh Bisht | ThePrint | File photo
Text Size:

New Delhi: In a relief for home-buyers, Finance Minister Nirmala Sitharaman Saturday announced funding support to nearly 3.5 lakh incomplete houses in the affordable and middle-income segment.

However, in a disappointment to the majority of home-buyers, the government clarified that these housing projects should be “non-NPA and non-NCLT projects”.

This means that those projects that have been declared non-performing asset by a bank and those whose promoters have been taken to the National Company Law Tribunal by the creditors will not be benefitted.

The Rs 20,000-crore fund will help in last mile funding of incomplete projects, Sitharaman said. This will help projects that are 60 per cent complete, but are struggling to find funds to achieve full completion, she added.

While the government will contribute Rs 10,000 crore, it will tap institutions like the Life Insurance Corporation of India and other private sector entities to contribute a similar amount.

The fund will also be professionally managed by people with expertise in the housing sector, Sitharaman said, along the lines of the National Infrastructure Investment Fund (NIIF).

With real estate developers under severe stress, many housing projects are stuck, leaving home-buyers in a quandary.

We are deeply grateful to our readers & viewers for their time, trust and subscriptions.

Quality journalism is expensive and needs readers to pay for it. Your support will define our work and ThePrint’s future.

SUBSCRIBE NOW

In fact, the Supreme Court has been forced to intervene to protect the interests of the home-buyers in projects run by firms like Jaypee Infratech and Amrapali.

Commercial borrowing guidelines may be relaxed

The government said external commercial borrowing guidelines may be relaxed in consultation with the Reserve Bank of India for housing finance companies for their onward lending to home-buyers, who are eligible under the Pradhan Mantri Awas Yojana.

The government has also decided to make the house building allowance given to central government employees more competitive by linking the interest rates to the rate of the 10-year government security.

These are part of a series of measures being taken by the government to boost the economic growth, which fell to a six-year low of 5 per cent in the quarter that ended in June.

The government had last month announced some measures to boost investors’ sentiment and provide some respite to the automobile industry.

Measures to boost exports

Sitharaman announced a new revised incentive package for exporters that will benefit sectors like textiles.

She also said that India would host mega shopping festivals in four cities in March 2020 in sectors like gems and jewellery, yoga, tourism, textiles, handicrafts and leather.

Besides this, she announced a plan to ensure faster clearances in all ports as well as a higher insurance cover for exporters from Export Credit Guarantee Corporation of India.


Also read: Nirmala Sitharaman’s not wrong. Ola and Uber can hurt car sales


 

Subscribe to our channels on YouTube & Telegram

News media is in a crisis & only you can fix it

You are reading this because you value good, intelligent and objective journalism. We thank you for your time and your trust.

You also know that the news media is facing an unprecedented crisis. It is likely that you are also hearing of the brutal layoffs and pay-cuts hitting the industry. There are many reasons why the media’s economics is broken. But a big one is that good people are not yet paying enough for good journalism.

We have a newsroom filled with talented young reporters. We also have the country’s most robust editing and fact-checking team, finest news photographers and video professionals. We are building India’s most ambitious and energetic news platform. And we aren’t even three yet.

At ThePrint, we invest in quality journalists. We pay them fairly and on time even in this difficult period. As you may have noticed, we do not flinch from spending whatever it takes to make sure our reporters reach where the story is. Our stellar coronavirus coverage is a good example. You can check some of it here.

This comes with a sizable cost. For us to continue bringing quality journalism, we need readers like you to pay for it. Because the advertising market is broken too.

If you think we deserve your support, do join us in this endeavour to strengthen fair, free, courageous, and questioning journalism, please click on the link below. Your support will define our journalism, and ThePrint’s future. It will take just a few seconds of your time.

Support Our Journalism

1 Comment Share Your Views

1 COMMENT

LEAVE A REPLY

Please enter your comment!
Please enter your name here