Finance Minister announces special window to complete stalled real estate projects

Finance Minister Nirmala Sitharaman said a Fund has been set up to rescue stalled realty projects.A total of 4.58 lakh housing units are stuck and around 1600 projects are stalled.

Written by November 6, 2019 21:46

New Delhi: The Union Cabinet has approved establishment of a ‘Special Window’ to provide priority debt financing for completion of stalled housing projects in the Affordable and Middle-Income Housing sector.

Briefing media after the Cabinet meeting, Finance Minister Nirmala Sitharaman said a Fund has been set up to rescue stalled realty projects.

real estate

The government shall act as the sponsor of the Fund and infuse up to 10,000 crore rupees. The Fund will provide relief to developers with unfinished projects and ensure delivery of homes to buyers. Ms Sitharaman said a total of 4.58 lakh housing units are stuck and around 1600 projects are stalled.

The move will help relieve financial stress faced by a large number of middle-class home buyers who have invested their hard-earned money. It will also release a large amount of funds stuck in these projects for productive use in economy.

The decision will also generate considerable employment, revive demand of cement, iron and steel industries as well as relieve stress in other major sectors of the economy. The Finance Minister said several meetings were held with stakeholders, builders, buyers, authorities, the RBI and other banks in the last two months.

Nirmala sitharaman

The Cabinet has approved the Cadre Review of Posts and Telegraphs Building Works Service, Group ‘A’.

The number of Duty posts was fixed as 105. The approval would result in strengthening of the cadre structure both at the headquarters and in the field units of the Department of Telecommunications and Department of Posts on the basis of functional requirements.

It was also decided that there will be no fresh recruitment into the cadre which will be phased out in such a manner that there is no adverse impact on the incumbents.

The Cabinet gave ex-post facto approval for the MoU between India and Bangladesh on withdrawal of 1.82 cusecs of water from Feni River by India for drinking water supply scheme for Sabroom town Tripura.

It has also given ex-post facto approval to the MoU between India and Paraguay for strengthening cooperation in the field of Tourism. The MoU was signed in New Delhi on the 27th September this year.

The Cabinet also gave its nod to the MoU between India and Brazil in the field of health and medicine. It is expected to be signed this month.

Cabinet clears ordinance to confiscate properties of fugitive economic offenders

The Cabinet approved the signing of the Protocol amending the Convention between India and Brazil for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income.

The Cabinet also gave ex-post facto approval to the MoU between India and Switzerland on Technical Cooperation in the field of Climate Change and Environment. It was signed in Switzerland on 13th September this year.

The Government has given approval for the MoU between India and Guinea in the field of Renewable Energy.