PremiumLast-mile financing for 72 stressed housing projects and preliminary approval for financing in the case of 132 other projects have been approved under a special window meant to help complete housing projects, the finance ministry said on Thursday.
The ministry said that 44,100 homes will be completed under 72 projects, which have been given final funding approval, and an additional 72,500 homes will be completed under another 132 projects for which preliminary financing clearance has been given.
Last-mile funding is given for stressed projects under the Special Window for Affordable and Mid-Income Housing (Swamih), the ministry said in a statement.
“Thus, the fund is targeting to complete an aggregate of 1,16,600 homes. This fund is bridging the trust deficit between homebuyers and developers by completing construction and delivering homes without depending on any other source of finance," the statement said.
Finance minister Nirmala Sitharaman handed over possession to homebuyers virtually on Thursday in the case of the first residential project that got completed with support from the fund.
The project - Rivali Park, located in suburban Mumbai, was launched by Sitharaman in November 2019. It is a large project spread over seven acres consisting of 708 units of various configurations, the statement said.
The government believes that once these homes are constructed and completed, a large amount of capital locked up in these projects will be released, the statement said quoting Sitharaman.
The minister said it will provide employment to construction workers and will provide impetus to the allied industries such as steel and cement. It will also improve portfolios of banks and non-bank lenders and significantly improve the economic sentiment in the nation, the statement said quoting the minister.
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