The last mile funding will benefit 900 homebuyers as the fund will help developer to deliver the 450 flats by October 2021 and rest by February 2022.
“We have given consent in relation to dues of the builder which need to be paid to the authority. A review meeting was called on Wednesday and we will meet 3-4 developers on March 15 to discuss how can they avail this fund to complete the stuck project,” said a spokesperson for the Greater Noida authority.
While the impact of liquidity issues was felt across all asset classes, the residential real estate was the most impacted.
By the end of 2019, nearly 5.76 lakh units (launched in 2013 or before) valued at over Rs 4.64 lakh crore were among the delayed and stalled projects across the seven major cities in the country, according to ANAROCK Research.
To mitigate this impediment the government has initiated the Alternate Investment Fund (AIF) with a corpus of Rs 25,000 crore in 2019.
This move was directed towards stressed residential real estate assets under construction which are yet to be completed, including those that are declared Non-Performing Assets and have been admitted for insolvency proceedings.
The government’s SWAMIH Fund has already sanctioned Rs 12,079 crore for over 81,000 units across 123 projects in the country.
According to NAREDCO, developers are now bullish for the growth ahead and optimistic for an unprecedented recovery.
“ While the SWAMIH Fund has done well, there are many stalled and delayed projects, recovery of which will need ramping up of the quantum of the fund as also allowing financial institutions to participate in the process,” said Niranjan Hiranandani, National President, NAREDCO.
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