Four real estate companies from three cities, Mumbai, Bengaluru, and Hyderabad, have approached to avail Rs 25,000 crore bailout fund, said Finance Minister Nirmala Sitharaman on Friday. She also said that more companies are likely to approach the nodal agency to take benefit of this window from next week.
The government approved a Rs 25,000 crore fund to help complete over 1,600 stalled housing projects earlier this month, including ones that have been declared NPAs or admitted for insolvency proceedings to increase the growth by steering consumption in real estate and associated sectors.
The Alternative Investment Fund (AIF) comprises of Rs 10,000 crore coming from the government and the remaining being provided by state insurer LIC and SBI. The fund, to be set up as Category-II AIF registered with SEBI, will be managed by SBICAP Ventures Limited.
The AIF will act as a ‘special window’ to provide loans to over 1,600 incomplete affordable and middle-lower income housing projects, which was first announced by the Finance Minister on September 14. She will hold a meeting with banks next week to assess their lending to the NBFC sector.
She also added that the ministry will seek disaggregated data on how much funds have been given to AAA-rated NBFCs and NFBCs rated below AAA and also seek details from RBI and PSU Banks on funds given to AAA-rated NBFCs, investment-grade NBFCs.