25,000 Crore Fund for Real Estate

01 Nov 2019 CW Staff

Given the above, an Alternative Investment Fund (AIF) where the Government contributes Rs 100 billion while SBI & LIC contribute Rs 150 billion has been initiated by the government to be managed by SBI Capital and targets 4.58 lakh residential units pending in 1,600 housing projects (value under Rs 2 cr in Mumbai, for Delhi/NCR, Chennai, Pune, Hyderabad, Kolkata at Rs 1.5 cr and under Rs 1 cr in other cities). Funds from the AIF will be released in tranches via an escrow account depending on the completion of the approved phase for RERA-registered projects.

Unsold inventories in 9 major cities stood at of 7,00,000 units. Of this total unsold housing stocks, 4,00,000 units were in the affordable segment.

Guest Author:
Mr. Pratap Padode,
Founder & Executive Director, First Construction Council

(FIRST CONSTRUCTION COUNCIL (a non-profit trust formed in 2003) aims to be the comprehensive source for all information needs of the construction companies and the industry's stakeholders, the catalyst for adopting best practices, the torchbearer for all policy initiatives needed to enhance the importance and welfare of the industry and be the industry's unified voice.)

News Source:

Considering banks have turned completely averse to funding real estate or infrastructure (ICICI has shut down its project finance division that funded infrastructure), the announcement of a Rs 250 billion fund is a lifeline. This should address most of the financial requirements (estimated to be Rs 550 billion to Rs 800 billion) of the stalled projects in real estate particularly those in the affordable housing segment. Funding from NBFCs has shown a 73% decline in the first half of 2019. Given the above, an Alternative Investment Fund (AIF) where the Government contributes Rs 100 billion while SBI & LIC contribute Rs 150 billion has been initiated by the government to be managed by SBI Capital and targets 4.58 lakh residential units pending in 1,600 housing projects (value under Rs 2 cr in Mumbai, for Delhi/NCR, Chennai, Pune, Hyderabad, Kolkata at Rs 1.5 cr and under Rs 1 cr in other cities). Funds from the AIF will be released in tranches via an escrow account depending on the completion of the approved phase for RERA-registered projects. Unsold inventories in 9 major cities stood at of 7,00,000 units. Of this total unsold housing stocks, 4,00,000 units were in the affordable segment. Guest Author: Mr. Pratap Padode, Founder & Executive Director, First Construction Council Linkedin: https://www.linkedin.com/in/pratappadode/ (FIRST CONSTRUCTION COUNCIL (a non-profit trust formed in 2003) aims to be the comprehensive source for all information needs of the construction companies and the industry's stakeholders, the catalyst for adopting best practices, the torchbearer for all policy initiatives needed to enhance the importance and welfare of the industry and be the industry's unified voice.) News Source: https://economictimes.indiatimes.com/markets/stocks/news/rs-25000-crore-fund-real-estate-sector-may-finally-come-out-of-stress-say-experts/articleshow/71943409.cms

Products

19 May 2025

unWOOD transforms plastic waste into durable wood alternative

unWOOD, a breakthrough innovation, is converting hard-to-recycle plastic waste into a durable alternative to natural wood. Developed through a proprietary process called Intelligent Compounding, unWOOD uses a Macro Molecular Fiber Matrix (MMFM) structure to replicate the strength, look, and feel of hardwood鈥攚ithout the environmental cost.Conceptualised by Dr Babu Padmanabhan, the material addresses key flaws in traditional plastic recycling by consuming minimal energy, using zero water, and generating no microplastics. 鈥淎ny application that introduces plastics into areas where it cannot be..

Real Estate

19 May 2025

India's first AI-integrated campus announced in Noida

Yashoda Hospital and Bhutani Infra have announced plans to develop India鈥檚 first fully AI-integrated mixed-use campus in Greater Noida West. The upcoming project will feature a hospital, retail spaces, offices, SOHOs, serviced apartments, and a hotel鈥攁ll operating within a self-learning, generative AI-powered ecosystem.The AI-first campus will integrate real-time data systems, predictive analytics, and adaptive infrastructure to offer personalised experiences across functions. From AI-enabled footfall tracking and dynamic energy optimisation to smart F&B and retail insights, the develo..

Infrastructure Urban

19 May 2025

Postal Dept Unveils Stamp Honouring 125 Years of Kodaikanal Observatory

The Department of Posts is proud to release a commemorative postage stamp celebrating 125 years of the Kodaikanal Solar Observatory (KSO). Recognising the legacy of the KSO through this special stamp is a fitting tribute to one of India鈥檚 most significant scientific institutions and highlights the nation鈥檚 long-standing contribution to global science.The Commemorative stamp was released by S Rajendra Kumar, Chief Postmaster General, Karnataka Circle in the gracious presence of A S Kiran Kumar, Chairperson, Governing Council, IIA and Former Chairman, ISRO and other esteemed guests at Indian..