Govt announces ₹20,000 cr boost for incomplete affordable housing projects

The announcements come at a time the economy is grappling with a slowdown. In the most recent quarter, GDP growth slowed to a six-year low of 5%. Auto and real estate are among the sectors that have borne the brunt of the slowdown.

In a series of incentives for affordable and middle class housing Finance Minister Nirmala Sitharaman on Saturday announced a special window to provide last mile funding for such projects with a fund of ₹20,000 crore.

Sitharaman also announced a slew of measures to boost exports among them remission of duties or taxes on export products, particularly in textile dispensation. (Raj K Raj/ HT Photo)

The announcements come at a time the economy is grappling with a slowdown. In the most recent quarter, GDP growth slowed to a six-year low of 5%. Auto and real estate are among the sectors that have borne the brunt of the slowdown.

“A special window to provide last mile funding for housing projects, which are non-NPA and non-NCLT and are net worth positive in affordable and middle class housing to be set up,” the finance minister said.

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The objective is to focus on unfinished projects with the government of India contributing ₹10,000 crore while an equal amount will come from outside investors. . The finance minister added that the fund would be professionally run by experts from housing a banking sectors.

Sitharaman also announced a slew of measures to boost exports among them remission of duties or taxes on export products, particularly in textile dispensation. “:The Export Credit Guarantee Corp will expand scope of ECIS and offer higher insurance cover to banks lending working capital for exports in a move which will cost ₹1700 crore per annum to the government,” said Sitharaman. Export finance will be actively monitored by an inter-ministerial working group in Dept of Commerce, tracked through a dashboard, she added.

Today’s announcements were third in the series of measure announced by the finance minister in the recent weeks. Earlier, government has announced a slew of measures, including front-loading of public expenditure, and improved access to credit for businesses and capital infusion into state-run banks to boost credit