The government is planning to set up a short-term fund to help real estate developers complete stalled projects. Despite the implementation of Real Estate Regulation and Development Act (RERA), there are more than 1,400 stuck housing projects across India, valued at Rs 3 lakh crore.
Home buyers across India had requested the finance ministry for a stress fund to the tune of at least Rs 10,000 crore to complete these projects.
Talking to CNBC-TV18, Housing and Urban Affairs Secretary Durga Shankar Mishra said that such a fund was under consideration by the Department Of Financial Services. The fund would help projects which are 90 percent complete and need last-mile funding.
“When a committee was constituted under my chairmanship for addressing the issue of projects near Noida, Greater Noida and Yamuna Expressway, we examined various aspects. Among various other recommendations, one was to create a short-term fund. When you give the fund support to these projects which are stalled, they could be completed or the projects would restart and home buyers would make payments," he noted.