NIFTY 50
Real Estate

AIF for realty sector a masterstroke by the government, says LIC Housing

Updated : November 07, 2019 10:25 AM IST

The Rs 25,000 crore alternate investment fund (AIF) announced by the government on Wednesday to help complete the stalled housing projects is a "masterstroke" by the Centre as it addresses the issues of developers as well as homebuyers, said Siddhartha Mohanty, managing director and CEO of LIC Housing Finance.

“This is a masterstroke by the government which has addressed the issues of the homebuyers, whose money is stuck in stalled projects... at the same time developers, who are not able to complete the projects because of their non-performing assets (NPA) position,” said Mohanty in an interview with CNBC-TV18.

Further elaborating on NPAs, he said, “Some projects which have turned into NPAs — around 4-5 projects are there — will be able to get fund from the fund announced by the finance minister and definitely they will complete the project.” “About 60-70 percent work is complete but because they are NPAs, we were not able to fund them," he added.

On stressed developers’ front, Mohanty said, “Our total developer book is just 7 percent and we think it’s a negligible percentage. Therefore, whatever 4-5 projects are stuck, which are NPAs, those will get the benefit and immediately our NPA position will improve.”
primo org
Have you signed up for Primo, our daily newsletter?
It has all the stories and data on the market, business, economy and tech that you need to know.
cnbc two logos
To keep watching CNBC-TV18, India's No. 1 English Business News Channel, call your Cable or DTH Operator and subscribe now for just Rs. 4 per month. You can also subscribe to CNBC-TV18 Prime HD for Re 1/- per month.Find out more
Live TV