Government to Consider Additional Relief Measures for Real Estate Sector and NBFCs
To help the NBFCs as well as the real estate sector, the government has decided to give more relief measures to both these sectors.
The last few months have seen the government make some announcements for the credit crunch and easy liquidity in the economy. Though this has reduced a lot of stress, both the sectors need a lot more help to bounce back.
The government presently is working on a dedicated scheme that may reduce the burden of some of the major NBFCs of stress assets. According to reports, the government is planning for a stress asset fund that will help buy out all the stressed financial assets.
The RBI, on the other hand, is likely to consider proposals from the Prime Minister’s Office as well as the Finance Ministry to not classify them as Special Mention Accounts (SMA) and go for a one-time recast of few selective real estate companies loans.
If this happens, it will be done firstly for projects that are at an advanced stage but stopped due to funding. This sanction will not be for the entire real estate industry, but only for projects that the banks consider need help after various commercial judgments.
In order to reflect the growth and economy of the real estate sector, the RBI along with the PMO and the Finance Ministry has taken several steps that will help this sector come out of the stress that it is dealing with right now.
According to a survey, there were around 4.58 lakh housing units stuck in India with more than 1,600 realty projects stalled. The government took immediate steps after the survey and announced having Rs. 25,000 crore alternative investment fund to revive the real estate sector.
An establishment of ‘Special Window’ has also been approved by the Cabinet that will focus on financing debts for completion of projects that have been put on hold due to funding or other financial issues especially, in the middle-income and affordable housing sector.
With all the ups and downs that the sector has seen in the last year, such announcements from the government have come as a relief and are helping this industry to get what it deserves slowly and steadily.