Government of India has recently announced the Real Estate Revival Package (Special Window OR Alternative Investment Fund - AIF) of Rs. 25,000 Cr. (by Government of India Rs. 10,000 Cr. and the rest 15,000 Cr. by SBI, LICI, etc.) as debt financing for stalled affordable & mid-income housing segment projects.
“We welcome the move by government of India to revive Indian real estate industry. However, there are critical issues which need clarifications like – What about the HIG/Luxury Projects funding, non RERA registered projects, companies facing liquidation, non-positive net worth projects where debt burden is too high, investment managers’ method of fund allotment, projects already availed financing at construction stage will need re-structuring with different lenders and hence addendum to the financing agreements may be re-structured. How and where the priorities of funding to thousands of projects across India will be decided are in Question. The said package is pro supply side only. On demand side, Real estate developers should be more cautious & planned on new product configurations, reasonable realizable pricing, appropriate location etc, as number of home seekers are much more in multiple than the available appropriate inventories. Moreover, West Bengal is unlikely to get funding due to being non RERA compliant state and not adopted the Central RERA.” said Mr. Mahesh Somani : Vice President - NAR India & Chairman : National RERA committee, NAR India.
However, we certainly welcome the intent of the government to revive the real estate sector. Hope that clarification and modus operandi draft will be released soon.
By LNN (Liyaans News Network)