November 7, 2019
Rs.25000 crores special window for funding the stuck housing projects, a great move for reviving the momentum in the Real Estate Sector, boost to the economy: PHD Chamber
Dr D K Aggarwal, President, PHD Chamber of Commerce and Industry, has congratulated the Hon’ble Finance Minister, Smt Nirmala Sitharaman, for the bold move of setting up a special window of Rs. 25000 crores for stuck home projects, in a press statement issued here today. This will have a positive impact on the growth and development of the Real Estate Sector in the country and give a boost to economic growth, going forward.
These developments will provide relief for the stressed home buyer, further instilling their confidence in the sector, generating employment and will aid in reviving the slowed momentum in the Real Estate sector since the last few years, said Dr D K Aggarwal.
The government’s move to utilize public funds by partnering with LIC and State Bank of India besides sovereign wealth funds and pension funds, for raising Rs. 25000 crores to the stuck projects is highly laudable, said Dr. D K Aggarwal.
The government is set to contribute Rs. 10000 crores and the remaining funds will come from LIC and SBI, Sovereign and pension funds are also expected to join. It was time that our country routed the public savings through pension funds, LIC and sovereign funds to finance the long term infrastructure projects, as is the case with developed economies like USA and Singapore where 30% of the financing is from people’s fund, he added.
Provisions made to fund projects which are’ positive net worth’ and RERA registered will further make the transactions in the Real Estate sector more cleaner, said Dr Aggarwal.
This highly appreciated move of the government will have a positive ripple effect on other major sectors of the economy with which the real estate sector has backward and forward linkages such as cement, iron and steel, among others, he said.
The Real Estate Sector has been facing stress in the last few years due to lack of demand. So at this moment the setting up of the approved special window of Rs. 25000 crores for funding the stuck real estate projects will provide a much needed breather to one of the most prominent sectors of the Indian economy thereby boosting employment for the growing population in the coming times, said Dr D K Aggarwal.