Nirmala Sitharaman the FM of India today (6.11.19) after a cabinet meeting said that the government is funding ₹10000 Crores towards the Alternative Investment Funds for Real estate which will be a relief to the Realty Developers with unfinished projects to complete the same and deliver.

Additionally government has also spoken with SBI and LIC for an additional funding of ₹15000 crores. This sums up to ₹25000 crores. This investment will be managed by the SBI Cap ventures.

Who will get funded?

The projects fulfilling the following criterias are eligible for the funding:

• Net-worth positive (The project’s assets outweigh its liabilities)
• Affordable & middle-income housing project
• On-going projects regd with RERA(Real Estate Regulatory Act)
• Reference by existing lender
• Include stressed projects classified as NPA & NCLT

Who are getting benefited?

• The realty developers with roughly 4.5 lakhs housing units.
• The housing units with a value less than ₹1 Crore in non metros and ₹2 crores in metros.

This means the buyers are the real beneficiaries. This will be ultimately beneficial to those who have made an advance and aren’t got delivered their housing units.

To conclude Realty gets its own dose of reforms which is beneficial to many citizens who are waiting for their half built homes to be delivered and the ones looking for homes. Eventually it will also be a good boost to the real estate sector to overcome the sluggishness.

– Thiru