Only RERA-registered projects with positive net worth will be provided funds. Real estate developers were asked to apply to seek money from this fund.
Realty firm Supertech on Sunday said it has sought Rs 1,500 crore from the government’s newly created stress fund to complete its 12 ongoing housing projects at Noida and Greater Noida in Uttar Pradesh. The company said these 12 projects comprising 20,000 flats are at an advanced stage of completion and it requires last mile funding to finish the pending works and deliver units to homebuyers. In November, 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 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. Real estate developers were asked to apply to seek money from this fund. “We have applied for stress fund of Rs 1,500 crore for our 12 projects nearing completion in Noida, Greater Noida and Yamuna Expressway to finish 20,000 flats in 1-2 years,” Supertech Ltd Chairman R K Arora told PTI. “We are eligible for stress fund and hope to get the same,” he added. Arora said the Uttar Pradesh government and state regulatory authority are helping builders in making applications. The Finance Ministry had said that the maximum funding would be Rs 400 crore for any single project that will seek assistance from the ‘special window’ or the alternative investment fund (AIF).
SBICAP Ventures has been appointed to manage the AIF. The Centre would infuse Rs 10,000 crore in this fund, while the remaining would be provided by SBI and LIC. Lakhs of home buyers are stuck in various stalled housing projects across the country. The National Capital Region is the most affected as many builders, including Amrapali, Unitech and Jaypee Infratech, failed to give possession of flats on time. Developers are banking on this fund not only to bail out the sector but also to help boost sluggish demand in residential property market.