New Delhi: Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman organized a review meeting with Secretaries of Ministries of Finance and senior management team of the State Bank of India, SBI Capital Markets Limited, and SBICAPS Ventures Limited (SVL) on Special Window for Affordable and Mid-Income Housing and stressed Residential Projects to boost investment in Real Estate sector. Rs. 8767 crore is approved so far for 81 projects to enable the completion of almost 60,000 homes across the country.
Amongst these projects, investments in 18 projects have been given final clearance and disbursement is at various stages across 7 residential projects which are spread across a mix of markets including large cities such as NCR, MMR, Bengaluru, Chennai, Pune and also Tier 2 locations including Karnal, Panipat, Lucknow, Surat, Dehradun, Kota, Nagpur, Jaipur, Nashik, Vizag, Chandigarh, etc. 353 applications are still under assistance. Activation of construction sites by the Special Window will provide employment opportunities for various skilled and semi-skilled laborers. The control mechanisms that are built by the Fund are to monitor the project progress and ensure prudent utilization by calibrating investments in line with project progress.
The steps bring in greater transparency in the sector in terms of accountability of project cash flows and eliminating diversion of funds. The recent initiative by the Fund to reduce the cost of capital to 12% has resulted in an increase in the number of projects that meet the funding criteria laid out under the Special Window. The steps were acknowledged which expedite participation from existing lenders. Both private and public Banks, NBFCs and HFCs should see the Special Window as a stakeholder and increase support early completion of stressed projects. The capital raised by the Fund is rapidly committed to removing remove any impediments. The opportunity provided by the special mandate in this Fund combined with active support from existing project financiers should be directed towards this objective of providing immediate relief to homebuyers