Finance Minister Nirmala Sitharaman said that the government would set up an alternative investment fund (AIF) worth Rs 25,000 crore to offer relief to developers with incomplete projects to ensure delivery of homes to buyers.
While the government has allotted Rs 10,000 crore towards the fund, Life Insurance Corporation of India and State Bank of India would also, infuse more money.
Briefing media persons post the Cabinet meeting; Nirmala Sitharaman said an internal survey revealed that nearly 4.58 lakh housing units were stuck in India with over 1,600 realty projects stalled.
The government will function as the sponsor of the fund and get funds up to Rs 10,000 crore. The AIF will be offering relief to the developers with unfinished projects and ensure delivery of homes to buyers.
SBICAP Ventures will be the investment manager for the fund.
The Cabinet also cleared an establishment of ‘Special Window’ to ensure priority debt financing for completion of hindered housing projects in the affordable and middle-income housing sector segment.