Four Real Estate Companies Requested To Avail Bailout Fund: Finance Minister
Finance Minister Nirmala Sitharaman on Friday said four real estate companies from three cities, Mumbai, Bengaluru and Hyderabad, have approached to avail Rs 25,000-crore bailout fund.
More companies are likely to approach the nodal agency for taking benefit of this window from next week, she said.
Earlier this month, the government approved a Rs 25,000 crore fund to help complete over 1,600 stalled housing projects, including ones that have been declared non-performing assets or admitted for insolvency proceedings in a bid to boost growth by steering consumption in real estate and associated sectors.
The Alternative Investment Fund comprises of Rs 10,000 crore coming from the government and the remaining being provided by state insurer Life Insurance Corporation and the country's largest lender SBI.
The fund, to be set up as Category-II AIF registered with the Securities Exchange Board of India, will be managed by SBICAP Ventures Limited.
The AIF, which was first announced by the Finance Minister on Sept. 14, will act as a 'special window' to provide loans to over 1,600 incomplete affordable and middle-lower income housing projects.
She further said that she will be holding a meeting with banks next week to assess their lending to the non-banking financial companies sector.
The ministry will seek disaggregated data on how much funds have been given to ‘AAA-’ rated NBFCs and NFBCs rated below ‘AAA’ and also seek details from the Reserve Bank of India and public sector undertaking banks on funds given to ‘AAA-’ rated NBFCs, investment-grade NBFCs, she added.