The National Housing Bank and some PSU banks may come forward to provide last mile funding to complete the unfinished projects.
With the problem of unfinished houses looming large and elections round the corner, there is pressure on the government to ensure that lakhs of homebuyers saddled with EMI burden get delivery of their homes.
With this in mind, it has been proposed that the government’s construction arm National Buildings Construction Corporation Ltd (NBCC) make an assessment of the projects that have been delayed and provide an estimate regarding the last mile funding that may be required to complete them, sources said.
The National Housing Bank and some PSU banks may also come forward to create a separate fund to complete the unfinished projects provided NBCC gets to construct the delayed projects, sources said.
These proposals were discussed at a meeting held on February 2 between finance ministry officials, PSU banks, NBCC, NHB and other officials, sources said, adding a decision to this effect may be taken soon.
It was also proposed that additional land available with developers whose projects are stuck should be monetized and utilised commercially.
“It has been proposed that the NBCC suggest the projects that have been delayed and the amount needed to complete those projects and submit a report to that effect. After they report has been submitted, the banks may agree to put in the amount required for completion in return for some units, additional FSI and vacant land and once completed these are completed, they would sell these units and recover the amount invested as last mile funding. Once the project is completed, it will cease to be an NPA,” sources said.
At a meeting held in the last week of January between the Interim Finance Minister Piyush Goyal and public sector banks in which housing secretary D S Mishra was also present, the housing ministry, NBCC and banks were entrusted with the task to work out a plan to bail out the stressed projects. The issue of setting up a stress asset fund was also discussed that could help complete the stuck projects.
The total value of the fund is yet to be worked out but sources said the seed capital could be anywhere between Rs 1000 crore and Rs 2,000 crore.
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