The issue of setting up a stress fund for the sector was discussed at a meeting between Piyush Goyal, who is officiating as finance minister, and public sector banks on Monday where housing secretary D S Mishra was also present, sources told TOI.
Though the corpus of the stress fund is yet to be worked out, the seed capital could be anywhere between Rs 1,000 crore and Rs 2,000 crore. The housing ministry, NBCC and banks have been asked to work out a plan that can be implemented quickly.
The other option is to use undeveloped land parcels with developers by transferring them to agencies such as NBCC, the construction PSU, which can leverage them to raise resources or develop them and finance the construction of flats, some of which were booked a decade ago.Several prominent realtors such as Jaypee Infratech, Amrapali and Lotus 3C’s Granite Gate – with close to 70,000 apartments, villas and plots – have already been referred for insolvency, putting the lifetime savings of middle-class homebuyers at risk.
Sources said in a lot of cases infusion of additional funds can do the trick. With builders unable to raise money, even homebuyers have stopped making construction-linked payments, creating a logjam that has been tough to break. The options are meant to address this concern.
The steps, which have been discussed for close to a year, seem to be getting a fresh push ahead of this summer’s general elections as the Yogi government in UP is keen to remove a key irritant in a constituency dominated by the middle class.According to estimates, the Amrapali group, which alone has to deliver 43,000 apartments, has vacant land and available floor space index for construction of about 10,000 new houses.
Similarly, Jaypee has around 3,500 acres of vacant land which can be monetised. Sources said Supertech, Unitech and 3C Group too have substantial vacant land that can be used for future development.
As reported first by on July 7, a high-level committee set up by the UP government to suggest a roadmap for the incomplete housing projects in Noida and Greater Noida had recommended that NBCC could take up vacant land parcels in Noida and especially in Greater Noida to develop the housing projects.