Centre’s ₹25,000 crore stress fund to benefit 3 lakh delayed flats in GB NagarUpdated: Nov 09, 2019 08:43 IST
NOIDA: A day after Union finance minister Nirmala Sitharaman approved a stress fund of ₹25,000 crore to complete delayed housing projects in the country, industry experts and developers welcomed the move and said it will expedite the delivery of around two lakh units, which have been delayed in Noida, Greater Noida and the Yamuna Expressway areas.
According to ANAROCK Property Consultants, the construction about two lakh units were delayed in different housing projects in NCR towns. As per the Uttar Pradesh government’s estimate, Noida, Greater Noida and Yamuna Expressway areas have around three lakh such units.
“Much in line with her promise to bring relief to the realty sector, the finance minister has announced that the ₹25,000 crore fund has got the Union cabinet nod, to be used for last-mile funding of stuck affordable and mid-segment projects. This is a critically important move as it eliminates any ambiguity about timelines for setting up the fund and its actual implementation. Finally, countless aggrieved homebuyers will finally get relief,” Anuj Puri, chairman, ANAROCK Property Consultants, said.
“Now, the criterion for eligibility is the net worth of positive projects. This will ensure that the funds are given to complete projects which are deemed non-performing assets or facing a litigation before the National Company Law Tribunal. We are certain that a majority of homebuyers will benefit from the announcement,” ATS CMD Getamber Anand, who is the former president of the Confederation of Real Estate Developers Association of India (Credai), a builders’ lobbying group, said.
According to the central government, the ₹25,000 crores will help complete over 1,600 stalled housing projects. The government also endorsed the setting up of a special window to provide priority debt financing for stalled projects in the affordable and middle-income housing sectors.
As per the definition, if any housing project has even a single flat that costs ₹1.5 crore or more, then the project will be ineligible to get the stress fund. The good news is that Noida’s delayed projects — those of 3C, Amrapali, Shubhkamna and other builders — have only lower and middle income flats are eligible to get the last-mile funding, officials said.
“All delayed housing projects will benefit as 99% flats fall under the affordable housing category in Noida, Greater Noida and Yamuna Expressway. As per the central government, a flat that costs less than ₹1.5 crore is called affordable,” Manoj Gaur, chairman, affordable housing committee, Credai, said.
“This is a much-needed step from the government. Thousands of homebuyers will get their flats delivered more quickly as developers will be able to avail of last-mile funding,” RK Arora, chairman of Supertech Group and member of Credai, said.
Of the ₹25,000 crore, the government will infuse ₹10,000 crore into stalled real estate projects. The remaining will be provided by the government-owned Life Insurance Corporation (LIC) and the State Bank of India, officials said.
Homebuyers hoped that this fund would expedite the delivery of flats.
“The government keeps making announcements and giving assurances, but nothing happens on the ground. We demand that the state government and local authorities come up with case-to-case basis solutions because each project has unique problems and flat buyers are suffering for no fault of theirs,” Hem Prakash, a buyer of Shubhkamna Group, said.