Union housing minister Manohar Lal proposes dedicated fund to revive pre-RERA stalled projects

Union housing minister Manohar Lal Khattar has indicated that a dedicated fund could be set up to revive stalled housing projects approved in the pre-RERA era

Updated on: Feb 15, 2026, 09:46:39 IST

Written by Vandana Ramnani

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Union Housing and Urban Affairs Minister Manohar Lal Khattar on February 14 indicated that a dedicated fund could be set up to revive stuck housing projects approved in the pre-RERA era, in line with industry suggestions, to enable a win-win resolution for both developers and homebuyers.

Union Housing and Urban Affairs Minister Manohar Lal Khattar on February 14 indicated that a dedicated fund could be set up to revive stalled housing projects approved in the pre-RERA era,

Speaking on the second day of the NAREDCO Conclave 2026, the minister indicated that a dedicated fund could be created to finance stalled housing projects approved before the implementation of the Real Estate (Regulation and Development) Act (RERA).

“There are wider and broader suggestions from the industry that a dedicated fund could help both promoters and homebuyers reach a win-win settlement in pre-RERA stalled projects,” he said.

The minister outlined a multi-pronged strategy focused on reviving stuck projects, fast-tracking affordable housing, and unlocking underutilised urban land parcels.

He said money could be organised through CSR contributions in proposed charitable institutions to generate funds for poorer sections of the society, since banking and financial institutions have not been sufficiently proactive in serving this segment.

During discussions at the conclave, NAREDCO proposed the creation of a government-backed fund of around ₹2.5 lakh crore to support the revival of stalled housing projects. Khattar said the size and structure of such a fund could be debated, but acknowledged that access to timely financing remains critical to restarting incomplete developments.

On urban redevelopment, Khattar said the government plans to develop nearly 700–750 slum settlements in and around the National Capital Territory (NCT). He noted that a policy framework for this initiative is currently being deliberated at a high level among various government authorities and stakeholders. “Once this proposal takes off, affordable housing will receive a significant fillip in and around the NCT,” he said.

On land availability

Addressing concerns about land availability, the minister suggested that land availability could be encouraged through cross-subsidisation, provided a broad consensus among stakeholders emerges.

Also Read: Reforming land policies can make housing more affordable: Niti Aayog member Rajiv Gauba

NAREDCO chairman Dr Niranjan Hiranandani said the government has made significant efforts to prioritise housing in the Indian economy, but stressed that more needs to be done. “If India is to become a Viksit Bharat, the contribution of the housing sector must rise to 15% of GDP by 2047,” he said. He also called for faster policy decisions to promote rental housing on economies-of-scale lines, which would benefit those unable to afford home ownership.

Also Read: Govt initiates pan-India study to review building height restrictions around airports

At the event, NAREDCO president Parveen Jain and Minister Khattar released a joint KPMG-NAREDCO knowledge report outlining a detailed roadmap for the real estate sector in line with the vision of Viksit Bharat.

On the first day of the Naredco event, Jain had emphasised Housing for All and said there is a need to promote affordable housing and easy access to finance for both builders and homebuyers. Jain said the government should incentivise rental housing.

ABOUT THE AUTHOR
Vandana Ramnani
Vandana Ramnani leads the real estate vertical at Hindustan Times Digital, bringing over two decades of journalism experience across real estate, education, human resources, and foreign affairs. She specialises in India’s real estate sector, covering residential and commercial markets in Delhi-NCR, Mumbai, and Bengaluru, with in-depth reporting on regulatory developments, urban policy, housing trends, and interviews with industry leaders. Her work has also appeared in the Hindustan Times newspaper and HT Estates. Earlier, Vandana played a key role in establishing the real estate vertical at Moneycontrol (NW18 Group), shaping its editorial direction and market coverage. She has also written extensively on international education for HT Education, tracking global study destinations, policy changes, and student mobility trends, earning the Singapore Education Award 2009 for Best Media Coverage (Print). Her reporting portfolio includes human resources and employment trends for HT ShineJobs and PowerJobs, as well as lifestyle and interior design features for HT Premium Homes. Vandana began her career with the Press Trust of India, gaining strong editorial and reporting expertise. She was also selected for a prestigious fellowship at Fondation Journalistes en Europe in Paris, where she wrote for EuroMag. One of her notable reporting assignments included covering Germany’s capital relocation from Bonn to Berlin. Outside of journalism, Vandana is a passionate traveller, constantly seeking out charming hideaways across India and the lesser-known, offbeat corners of Southeast Asia.Read More

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