New Delhi: In an effort to provide an impetus to the economy, Union Finance Minister Nirmala Sitharaman made a significant announcement of boosting the stalled housing projects. As per the announcement, 1,600 stalled housing projects will be provided with a package of ₹25,000 crores. Finance Minister Sitharaman said that the government would be distributing the first instalment of ₹10,000 crores shortly. Sitharaman also clarified that the package would be for affordable and middle-income group housing projects.
Giving impetus to the housing projects will increase the demand for steel, cement and other items, and the overall economy will be set into motion. Finance Minister Sitharaman announced this package citing that the housing sector, one of the strongest pillars of the economy. There are nearly 458,000 dwelling units, in these stalled projects and the projects will once again, be on course with the availability of these funds. The distribution of the first instalment of ₹10,000 crores will start soon. Funds will be raised from LIC and State Bank in the coming times and the total package will amount to ₹25,000 crores.
These funds will be available for the housing projects and will set the economy in motion. The funds will be disbursed only after the practicability of the project is verified. The Finance Minister pointed out that projects with bad loans will not be considered for this scheme. While announcing the package, Sitharaman announced that these funds would be given only to the projects with affordable and middle-income group housing. Sitharaman informed that as per the criteria, houses less than two crores in Mumbai, less than ₹1.5 crores in New Delhi and less than one crore in other cities, will qualify for the funding.
The government has undertaken economic reforms to shed the lethargy in the economy and to bolster finance. The Union Finance Minister has already announced that the government is ready to take necessary bold decisions to implement economic reforms. The decision on this package for the Housing industry had been taken in September and accordingly the announcement was made, said Sitharaman. She also indicated that more decisions on these lines might be taken by the government soon.