Something went wrong with the connection!
 Breaking News

Center mulls more relief for real estate sector, NBFCs

Center mulls more relief for real estate sector, NBFCs
December 02
14:08 2019

NEW DELHI: In a bid to help the NBFCs and real estate companies, the Center is considering more relief measures for both stressed sectors. In the past few months the government has announced few measures to ease liquidity and the credit crunch in the economy.

According to sources, the government is weighing the option of unburdening some of the major NBFCs of stress assets through a dedicated scheme. A stressed asset fund may be created to buy out the stressed financial assets.

Further, the RBI is likely to consider proposals from finance ministry and Prime Minister’s Office to let the banks take the decisions of not classifying them as default or special mention accounts (SMA) and go for one time recast of selective real estate companies’ loans.

RBI, if allows banks to one-time rollover realty loans recast for temporarily removing the NPA or even SMA accounts tag, it will be done on a case to case basis for projects which are at an advanced stage but stalled due to funding because of repayment woes, projects with positive cash flows.

It is not for the entire industry, but to sound projects which banks will decide on commercial judgement after being empowered by the RBI, sources said. This would call for recast of real estate developers loans. One time recast would mean a one-time rollover for real estate developers for loan repayments which will not classify their loans as SMA or NPA. And this will help them approach funding agencies or market without having any doubt on their profiles, said sources adding this is being actively pursued as the industry has suggested it for as an option for meeting liquidity gap.

PMO, Finance Ministry and the RBI have taken several steps for resurrecting the real estate sector, seen as key to reflect growth and demand for economy. Government recently announced setting up of Rs 25,000-crore alternative investment fund to revive realty sector after a survey showed that around 4.58 lakh housing units were stuck in India.

Finance Minister Nirmala Sitharaman had said an internal survey showed that around 4.58 lakh housing units were stuck in India with over 1,600 realty projects stalled. The Cabinet also approved an establishment of ‘Special Window’ to provide priority debt financing for completion of stalled housing projects in the affordable and middle-income housing sector.

Real estate industry associations CREDAI and NAREDCO have also been seeking this one-time rollover. IANS

Comments

comments

Related Articles

Polls

Should National Register of Citizens (NRC) cover the whole of India?

View Results

Loading ... Loading ...

E-paper Latest Edition

Subscribe to our Digital Edition

Epaper

ADVERTISEMENT – INKASA INTERIORS

Inkasa Interiors | Interior Designer in Delhi

ADVERTISEMENT – Ponderosa Homes

Ponderosa Homes

50 SPIRITUAL APPETIZERS – VINOD DHAWAN

50-ad-Indiapost

It’s a lovely book. It feels energetically clear and light. It’s easy to read, dip in and out and most importantly it offers information without fluff! Blessings on this project.

Jac O’Keeffe
Spirituality teacher based in USA.

*Available on Amazon, Flipkart & other online stores*

ADVERTISEMENT – Star Tours

Star Tours

ADVERTISEMENT – Global Holidays

Global Holidays Early Bird Discounts

POPULAR CATEGORIES

Follow us On Twitter

Finland's new young female prime minister breaks the mold - https://t.co/ap4RjvKhCs Get your news featured use… https://t.co/49lPYWBvAO
h J R
@Indiapost_News
Jesus, Virgin Mary caged, separated in California Nativity scene - https://t.co/uqB0QQmd7t Get your news featured… https://t.co/fLylIQgvGu
h J R
@Indiapost_News
#Myanmar's Suu Kyi heads to Hague court for genocide showdown - https://t.co/kvNlcOnCL8 Get your news featured use… https://t.co/IxADVOngwg
h J R
@Indiapost_News
#Russia awaits Modi's participation in Moscow parade 2020: Envoy - https://t.co/wzU6tdObgR Get your news featured… https://t.co/lIrzVjTpw1
h J R
@Indiapost_News

Facebook

Subscribe To Our Mailing List

Enter your email address:

Delivered by FeedBurner

Subscribe to IndiaPost by Email

Download Media Kit

India Post Media Kit