25,000 Crore Fund for Real Estate
Real Estate

25,000 Crore Fund for Real Estate

Considering banks have turned completely averse to funding real estate or infrastructure (ICICI has shut down its project finance division that funded infrastructure), the announcement of a Rs 250 billion fund is a lifeline. This should address most of the financial requirements (estimated to be Rs 550 billion to Rs 800 billion) of the stalled projects in real estate particularly those in the affordable housing segment. Funding from NBFCs has shown a 73% decline in the first half of 2019.

Given the above, an Alternative Investment Fund (AIF) where the Government contributes Rs 100 billion while SBI & LIC contribute Rs 150 billion has been initiated by the government to be managed by SBI Capital and targets 4.58 lakh residential units pending in 1,600 housing projects (value under Rs 2 cr in Mumbai, for Delhi/NCR, Chennai, Pune, Hyderabad, Kolkata at Rs 1.5 cr and under Rs 1 cr in other cities). Funds from the AIF will be released in tranches via an escrow account depending on the completion of the approved phase for RERA-registered projects.

Unsold inventories in 9 major cities stood at of 7,00,000 units. Of this total unsold housing stocks, 4,00,000 units were in the affordable segment.

Guest Author:
Mr. Pratap Padode,

Founder & Executive Director, First Construction Council
Linkedin: https://www.linkedin.com/in/pratappadode/
(FIRST CONSTRUCTION COUNCIL (a non-profit trust formed in 2003) aims to be the comprehensive source for all information needs of the construction companies and the industry's stakeholders, the catalyst for adopting best practices, the torchbearer for all policy initiatives needed to enhance the importance and welfare of the industry and be the industry's unified voice.)

News Source: https://economictimes.indiatimes.com/markets/stocks/news/rs-25000-crore-fund-real-estate-sector-may-finally-come-out-of-stress-say-experts/articleshow/71943409.cms

Considering banks have turned completely averse to funding real estate or infrastructure (ICICI has shut down its project finance division that funded infrastructure), the announcement of a Rs 250 billion fund is a lifeline. This should address most of the financial requirements (estimated to be Rs 550 billion to Rs 800 billion) of the stalled projects in real estate particularly those in the affordable housing segment. Funding from NBFCs has shown a 73% decline in the first half of 2019. Given the above, an Alternative Investment Fund (AIF) where the Government contributes Rs 100 billion while SBI & LIC contribute Rs 150 billion has been initiated by the government to be managed by SBI Capital and targets 4.58 lakh residential units pending in 1,600 housing projects (value under Rs 2 cr in Mumbai, for Delhi/NCR, Chennai, Pune, Hyderabad, Kolkata at Rs 1.5 cr and under Rs 1 cr in other cities). Funds from the AIF will be released in tranches via an escrow account depending on the completion of the approved phase for RERA-registered projects. Unsold inventories in 9 major cities stood at of 7,00,000 units. Of this total unsold housing stocks, 4,00,000 units were in the affordable segment. Guest Author: Mr. Pratap Padode, Founder & Executive Director, First Construction Council Linkedin: https://www.linkedin.com/in/pratappadode/ (FIRST CONSTRUCTION COUNCIL (a non-profit trust formed in 2003) aims to be the comprehensive source for all information needs of the construction companies and the industry's stakeholders, the catalyst for adopting best practices, the torchbearer for all policy initiatives needed to enhance the importance and welfare of the industry and be the industry's unified voice.) News Source: https://economictimes.indiatimes.com/markets/stocks/news/rs-25000-crore-fund-real-estate-sector-may-finally-come-out-of-stress-say-experts/articleshow/71943409.cms

Next Story
Infrastructure Urban

Paras Defence Subsidiary Wins Rs 460 Mn Anti-Drone Order

Paras Defence and Space Technologies (PDST) saw its shares rise 1.5 per cent to Rs 701 after its subsidiary, Paras Anti-Drone Technologies, secured a defence contract from the Ministry of Defence, Government of India, valued at approximately Rs 460.19 million.The order covers the supply of Anti-Drone Systems, including Drone Jammers, marking a significant milestone for Paras Anti-Drone in India’s growing counter-UAV segment. The contract is scheduled for execution by March 2026. According to official filings, the award is from a domestic entity, not a related party transaction, and no promot..

Next Story
Building Material

Jindal Stainless Launches First Stainless Steel Fabrication Unit in Mumbai

Jindal Stainless, India’s largest stainless steel manufacturer, through its subsidiary Jindal Stainless Steelway (JSSL), has inaugurated its first stainless steel fabrication unit at Washivali, Patalganga, Mumbai. The 4 lakh sq ft facility is designed to serve the bridge sector, fabricating critical components such as girders, arches, nuts, bolts, and handles. The unit was inaugurated by CEO & CFO Tarun Khulbe in the presence of senior leadership.Developed with an initial investment of Rs 1.25 billion, the facility strengthens Jindal Stainless’ position as a provider of end-to-end fabr..

Next Story
Infrastructure Energy

Hero Future Energies Secures Rs 19.08 Bn for 120 MW Hybrid Project

Hero Future Energies (HFE), through its SPV Clean Renewable Energy Hybrid Three, has secured Rs 19,080 million in funding from State Bank of India (lead) and Canara Bank for the development of its 120 MW renewable energy (RE) hybrid project in Kurnool, Andhra Pradesh.The project, contracted with SJVN, integrates wind, solar, and storage technologies to provide reliable peak power. The funding, structured with a 21-year repayment tenure, will support timely project execution and the commencement of commercial operations.This financial closure underscores the banking community’s confidence in ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?