Finance Minister Nirmala Sitharaman on Saturday announced another set of measures to boost the economy that included over Rs 50,000 crore package for exports and creation of a Rs 20,000 crore fund for unfinished real estate projects to complete about 3.5 lakh dwelling units in affordable and middle income segments.
The finance minister said the government will contribute Rs 10,000 crore in setting up a special window “to provide last mile funding for housing projects which are non-NPA [non-performing asset] and non-NCLT [National Company Law Tribunal] projects and are net worth positive in affordable and middle income category,” and contributions of “roughly the same amount” will come from outside investors. Sitharaman had already announced two other sets measures to boost the economy last month on August 23 and August 30.
“GoI [Government of India] on the lines of NIIF [National Investment and Infrastructure Fund], can contribute to the fund while the rest of the investors would be LIC and other institutions and private capital from banks, sovereign funds, DFIs [development finance institutions] etc,” she said.
The fund will provide much needed “last mile funding” for the unfinished housing projects and help about 3-3.5 lakh housing buyers across the country, she said.