ARCs to Gain 500-700 bps in Residential Realty Recoveries

14 Jun 2024 CW Team

Asset reconstruction companies (ARCs) are expected to see a significant increase in recovery rates from stressed residential real estate projects, according to CRISIL Ratings. Recoveries could rise by 500-700 basis points, from 11% in March 2024 to 16-18% by March 2025. This improvement is driven by healthy demand, price appreciation in residential real estate, and increased investor interest.

Recent amendments to the Insolvency and Bankruptcy Board of India (IBBI) regulations are also expected to facilitate better resolution of stressed real estate assets. CRISIL's analysis of its security receipts portfolio, which includes 70 stressed projects covering 66 million square feet with Rs 9,000 crore in outstanding receipts, supports this outlook.

The residential real estate sector in the top six cities is projected to grow by 10-12% this financial year, fueled by strong economic growth and robust housing demand. Lower unsold inventories in major markets will help ARCs expedite the turnaround of distressed projects with support from promoters or external investors.

About three-fourths of the analysed projects became non-performing assets (NPAs) between 2019 and 2022 due to declining sales and slower collections during the COVID-19 pandemic. The rest are pre-2019 NPAs affected by weak demand and liquidity issues. Enhanced market conditions now make these projects viable for last-mile funding, improving recovery prospects for ARCs.

Infrastructure Urban

13 Mar 2026

Implementation Status of Jal Jeevan Mission

Since August 2019 the Government has implemented Jal Jeevan Mission to provide assured potable water through household tap connections in rural India. At the start of the mission only 32.3 million (mn) rural households, representing 16.7 per cent, were reported to have tap water connections. States and union territories have reported that 125.8 mn additional rural households have since been provided with tap connections. As a result, of about 193.6 mn rural households roughly 158.2 mn, or 81.71 per cent, are reported to have tap water supply at home.\n\nThe State, district and village level st..

Jal Jeevan Mission Reaches Eighty One Per Cent Rural Coverage

The Government reported substantial progress under the Jal Jeevan Mission, launched in August 2019 to provide tap water to every rural household. At launch only 32.3 million (mn) rural households had tap connections and states and Union territories reported provision of 125.8 mn additional households by March 2026. Consequently, out of about 193.6 mn rural households around 158.2 mn, or 81.71 per cent, are reported to have tap water at home. The Finance Minister announced extension of the mission until 2028 in the 2025-26 budget speech. The Swachh Bharat Mission Grameen, launched in October 20..

Empowering Local Governance for Sustainable Rural Water Supply

The Ministry of Jal Shakti has aligned the Jal Jeevan Mission (JJM) with the 73rd Amendment to strengthen village level planning and community ownership of water supply. Gram Panchayats, village water and sanitation committees and Pani Samitis are to plan, implement, manage and maintain piped water systems, with gram sabha processes formalising handover and oversight. Implementation support agencies including non government organisations, community based organisations and self help groups have been empanelled to train local committees and promote women participation. Under JJM, the department ..