Another Booster Dose for Indian Economy
The Cabinet decision will also generate considerable employment, revive demand of cement, iron and steel industries as well as relieve stress in other major sectors of the economy.
By Onkareshwar Pandey
New Delhi, November 6, 2019: in a major decision, Prime Minister Narendra Modi led BJP government has approved setting up of a Rs 25,000 crore bailout fund to finance 1,600 stalled housing projects as it looks to boost the economy by kickstarting incomplete projects.
A total of 4.58 lakh housing units are stuck and around 1600 projects are stalled in the realty sector.
The Government has decided to finance 1,600 stalled housing projects comprising 4.58 lakh housing units across the country, Finance Minister Nirmala Sitharaman announced on Wednesday.
It was approved in a high-level meeting of Union Cabinet held under the chairmanship of Prime Minister Narendra Modi.
Announcing the decision, Finance Minister Sitharaman said the government will put in Rs 10,000 crore in this alternative investment fund (AIF) while SBI and LIC would provide Rs 15,000 crore, taking the total size to Rs 25,000 crore.
“A Fund has been set up to rescue stalled realty projects. The Cabinet has approved the establishment of a 'Special Window' to provide priority debt financing for completion of stalled housing projects in the Affordable and Middle-Income Housing sector,” Finance Minister said.
The Finance Minister said several meetings were held with stakeholders, builders, buyers, authorities, the RBI and other banks in the last two months, before taking this decision.
The Government’s move is expected to help relieve financial stress faced by a large number of middle-class homebuyers who have invested their hard-earned money. It will also release a large amount of funds stuck in these projects for productive use in the economy.
The Cabinet decision will also generate considerable employment, revive demand of cement, iron and steel industries as well as relieve stress in other major sectors of the economy.
The Union Cabinet today also gave nod to several other important proposals for welfare and development.
It has approved the Cadre Review of Posts and Telegraphs Building Works Service, Group ‘A’
The number of Duty posts was fixed as 105. The approval would result in strengthening the cadre structure both at the headquarters and in the field units of the Department of Telecommunications and Department of Posts on the basis of functional requirements.