The government, which has set up a Rs 25,000-crore stress fund to revive stalled housing projects, on Friday said it has cleared investments of over Rs 540 crore in some stuck residential properties that will benefit 1,800 homebuyers. That apart, a preliminary clearance has been given for due diligence in 14 projects, which would require a fund infusion of Rs 2,500 crore. Another 40 more transactions are under active consideration.
In November last year, the central government announced a Rs 25,000-crore fund to help complete over 1,500 stalled housing projects, including even those that have been declared NPAs (non-performing assets) or admitted for insolvency proceedings.
The move is likely to help 4.58 lakh housing units across the country. Only RERA-registered projects with positive net worth will be provided funds. “Special Window clears projects with capital commitment of more than Rs 540 crores. Disbursements started which will provide relief to 1800 home buyers and unlock Rs 3,000 crores of invested capital,” the finance ministry said in a tweet.
“Further, preliminary clearance has been given for due diligence to 14 projects with capital commitment of Rs.2500 Crores that will provide relief to 10,000 home buyers and release Rs12500 Crores of invested capital,” it tweeted.
“Around 40 more deals under active consideration for investment,” the finance ministry said.
The ministry, however, did not disclose the name of projects as well as developers who have received this Rs 540 crore amount from stress fund. The special window of Rs 25,000 crore is in form of alternative investment fund (AIF). The Centre is infusing Rs 10,000 crore into this stress fund, while the remaining being provided by state insurer LIC and the country”s largest lender SBI. The AIF is being managed by SBI Cap.