FUNDS TO HELP HOUSING SECTOR
Context: The union cabinet has approved for a creation of an alternative investment fund (AIF) to finance stalled housing project.
- This is expected to provide last mile funding to stalled affordable and middle income housing projects across the country.
- The projects need to be registered in RERA (Real Estate Regulatory Authority) and their net worth should be positive.
- Even if the project has been declared an NPA (Non performing asset) or dragged toNCLT (National company law tribunal) but not asked for liquidation is eligible.
- This expands the scope of including more projects under the new corpus. The government has taken a big step by allowing projects undergoing insolvency proceedings to benefit from the distressed fund scheme
- The focus on real estate is part of the government’s broader plan to kick-start economic growth.
- The move is likely to generate jobs and revive demand for building materials like cement, iron and steel.