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Government clears Rs 540 crore investments in stuck residential properties

Government clears Rs 540 crore investments in stuck residential properties
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Union Government on Friday cleared investments of over Rs 540 crore in some stuck residential properties.

Union Government on Friday cleared investments of over Rs 540 crore in some stuck residential properties. This will benefit 1,800 home buyers. The ministry, however, did not disclose the name of projects as well as developers who have received this Rs 540 crore amount from stress fund.

In a tweet, Finance Ministry said, a preliminary clearance has also been given for due diligence to 14 projects with a capital commitment of 2,500 crore rupees that will provide relief to 10 thousand home buyers and release Rs 12,500 Crores of invested capital. Another 40 more transactions are under active consideration for investment.

Earlier in November last year, the government had announced a Rs 25,000 crore fund to help complete over 1,500 stalled housing projects, including even those that have been declared NPAs (non-performing assets) or admitted for insolvency proceedings.

The special window of Rs 25,000 crore is in the form of an alternative investment fund (AIF). The Centre is infusing Rs 10,000 crore into this stress fund, while the remaining will be provided by state insurer LIC and the country's largest lender SBI. The AIF is being managed by SBI Cap.

The move is likely to help 4.58 lakh housing units across the country. Only RERA-registered projects with a positive net worth will be provided with funds.

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