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.
âThis 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,â said Mohanty in an interview with CNBC-TV18.
Further elaborating on NPAs, he said, âSome projects which have turned into NPAs â around 4-5 projects are there â will be able to get fund from the fund announced by the finance minister and definitely they will complete the project.âÂ âAbout 60-70 percent work is complete but because they are NPAs, we were not able to fund them," he added.
On stressed developersâ front, Mohanty said, âOur total developer book is just 7 percent and we think itâs 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.â