It is also expected to be discussed in the upcoming meeting of BJP and RSS for the textile, auto and real estate sector which is necessary for the growth of the country’s economy.
- After the announcements made to remove the sluggishness in India’s economy, now the Modi government can announce for the real estate sector. The next installment of the Modi government’s incentive is likely to be decided to help to complete the stalled housing projects.
- According to sources associated with the matter, the package of the real estate industry may include additional funding arrangements for Housing Finance Companies (HFCs) and a standard exemption for developers taking bank loans.
It is also expected to be discussed in the upcoming meeting of BJP and RSS for the textile, auto and real estate sector which is necessary for the growth of the country’s economy. Institutions like Swadeshi Jagran Manch, Laghu Udyog Bharti, Bharatiya Mazdoor Sangh have demanded the Modi government to work on ways to give a boost to the economy.
The scope of affordable housing may increase
The Modi government may consider the demand for real estate businessmen to increase the scope of affordable housing. In this, the scope of affordable housing can be increased from Rs 45 lakh to Rs 70 lakh.
Financial assistance schemes related to housing finance companies can also be announced. Finance Minister Nirmala Sitharaman had said on August 23 that the National Housing Bank would make arrangements to provide additional cash of Rs 20,000 crore to the HFC sector. The Finance Minister also said that she would soon make announcements for the real estate sector and stalled projects.
10,000 crore was asked for in a meeting
Finance Minister, the Forum for People’s Collective Efforts (FPCE) said that at least five lakh homebuyers have been stranded in various housing projects across the country. Accordingly, to complete these trapped projects and provide relief to homebuyers, the Modi government created a corpus of Rs 10,000 crore.
Concerns over the cash crisis
During a meeting with Finance Minister Nirmala Sitharaman on 11 August last, CREDAI and NARDECO, the association of real estate companies, had expressed concern that the cash situation in the financial system has worsened since the IL&FS crisis.
In the next installment of the Modi government‘s incentive, a decision can be taken to provide assistance to complete the stalled housing projects. Sources say that the Modi government may declare a fund of Rs 8,000 crore for the stalled real estate project.