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Govt announces Rs 20,000 cr support for stuck housing projects

Monday, 16 Sep 2019
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Union Minister of Finance & Corporate Affairs Nirmala Sitharaman announced various incentives for affordable and middle-class housing on 14 September 2019.

An announcement was made for a special window to provide last-mile funding for housing projects with a fund of Rs 20,000 crore.

Such a special window will provide last mile funding for housing projects which are non-NPA and non-NCLT and net worth positive in affordable and middle-class housing will be set up. 

The objective is to focus on unfinished projects with the government of India contributing Rs 10,000 crore, while an equal amount will be contributed from outside investors.

The fund will be set up as Category-II AIF trust and professionally run with experts from the Housing and Banking sector.

Apart from this, a slew of measures were also announced to boost exports, among them remission of duties or taxes on export products, particularly in textile dispensation.

The Export Credit Guarantee Corp will expand scope of ECIS and offer higher insurance cover to banks lending working capital for exports in a move which will cost Rs 1,700 crore per annum to the government.

Export finance will be monitored by an inter-ministerial working group in the Department of Commerce, tracked through a dashboard.

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