The Indian government has recently approved of a fund aiding stopped housing projects.
"Indias cabinet has approved INR 100 billion ($1.4 billion) for a fund to help clear stalled housing projects," Reuters reported citing the statement of Finance Minister, Nirmala Sitharaman.
Sitharaman said the State Bank of India (SBI) (SBI.NS) and state-run insurance company Life Corporation of India will contribute an additional INR 150 billion, taking the total size of the fund to 250 billion.
In the present year, the realty sector has faced a liquidity crunch after a series of NBFC (Non-banking finance companies) become debt-laden. As a result, cash strapped situation occurs in the realty segment, leading stalled housing projects that have stranded homebuyers albeit they were paying out monthly installments.
The new fund, or special window, will help revive more than 1,600 moribund housing projects, Reuters reported citing statements of Sitharaman.
"The special window would provide funds to stalled housing projects enabling them to complete unfinished projects and consequently ensure delivery of homes to a large number of home-buyers," the Finance Minister said.
Sovereign and pension funds would also be allowed to contribute to expand the size of the fund, Sitharaman said.