According to government official sources, the finance ministry may soon announce a relief package that is likely to focus on the stalled projects of the real estate sector. The announcement will give major respite to stressed home buyers who have spent their hard-earned money on projects that remain incomplete due to funding issues.
Homebuyers from across the country have been demanding solutions to thousands of stalled projects in the country. The government is looking very serious to find a way out of this crisis, government sources said without disclosing the relief package would be a stress fund of Rs 10,000 Crore as demanded.
Another official said that stress funds are not the only way to provide liquidity while emphasizing the fact that many countries use stress funds, albeit in private form.
In almost every big and responsible world market, stress funds do exist, although they are mostly owned by private players.
The government of India has announced more credit support to housing finance corporations in August this year during which additional monetary support was extended to various HFCs by the National Housing Bank.
Finance minister Nirmala Sitaraman discussed the issue related to the real estate sector and ways to strengthen the industry in her meeting with CREDAI, NAREDCO and homebuyer associations.
Real estate sector in India has been facing lots of trouble in the past few years which was further shocked by the news of National Housing Bank asking housing finance companies not to fund under subvention scheme. NAREDCO has also raised the issue of fund crisis in the real estate sector. Homebuyer association, Forum For People’s Collective Efforts (FPCE) sought Rs 10,000 Crore in order to address the problem of stalled projects.