Affordable Housing Schemes – India is facing an economic slowdown. With major brands coming down and unemployment going high, the need for the hour is a huge boost which could uplift at least a few sectors to improve the economic conditions of the nation. All the hopes are pinned on Finance Minister Nirmala Sitharaman and the central government regarding the same. Hence, relief comes in the form of the INR 20,000 crore affordable housing benefit that has been announced.
The Affordable Housing Schemes benefit announced by the government is meant to benefit nearly 3,5 lac homeowners. This is meant to be a special financial window to push the projects that have been stuck for long, owing to budget distress. While INR 10,000 crore will be contributed by the central government on the lines NIIF or National Infrastructure Investment Fund, the remaining INR 10,000 crore will be pitched in by investors such as LIC, sovereign wealth funds, private capital and more.
In the words of Finance Minister Nirmala Sitharaman, this will be a Category – II AIF trust fund, which will be run by professionals from the banking and housing sectors, to ensure that the working is meticulous in every aspect. “They will identify projects across the country that are middle income and affordable scheme related where nearly 60% of their work is complete and they don’t have any more cash flow to complete the rest of the 40%,” Sitharaman added.
If facts are to be believed, then currently, nearly 8.5 lac incomplete structures are spread across the country, in dire need of these funds. Though the scheme announced is not sufficient to rescue them all, but it will surely help at least a third of these.
The real estate industry which is a major job-creating sector has been the worst affected as the economy took a downward plunge. The situation further worsened when the NBFCs faced a severe liquidity crisis in 2018. This gave another hit to the real estate sector as the developers were sourcing funds from the sector.
Hopefully, things will look uphill with this step. The RBI has already taken a positive step towards uplifting the sector by slashing its interest rates four times. This new scheme will surely act as a much-needed boost to the real estate sector and by extension the economy as a whole.