New Delhi, Sep 14: In a much-needed boost for the housing and real estate industry, Union Finance Minister Nirmala Sitharaman announced a special window worth Rs 10,000 crore to provide last mile funding for housing projects.
Expected to make life easier for the affordable and middle-income categories, this measure will focus on completing construction of unfinished units which are non-NPA, non-NCLT and net worth positive.
The government will also relax the ECB norms for financing home buyers of Pradhan Mantri Awas Yojana (PMAY) in discussion with RBI, Sitharaman said.
She added that the home buyers are already Operational creditors in case of NCLT stuck housing projects.
Here are some of the highlights from the minister's speech:
- The revival of fixed investment is showing improvement.
- Inflation is under control and there is a clear sign of revival of industrial production.
- The minister will meet heads of public sector banks on September 19.
- Smaller tax defaulters will not be targetted. Only big defaulters, those with default amounts above Rs 30 lakhs will be targetted.
- Six-point strategy to boost exports.
- Higher insurance cover to banks lending financial cover to exports. The premium will now be far less than earlier.
- Remission of duties on exports from January 1, 2020.
- Finance Minister Nirmala Sitharaman: The scheme of Remission of Duties or Taxes on Export Products (RoDTEP) is a new scheme, it shall completely replace all Merchandise Exports from India Scheme (MEIS) from January 1, 2020.
- Finance Minister Nirmala Sitharaman: Will offer higher insurance cover to banks lending working capital for exports in a move which will cost Rs 1700 crores per annum to the government.
- Finance Minister Nirmala Sitharaman: The government is working to reduce 'Time to export' by leveraging technology further action plan to reduce turn around time at airports and ports benchmarked to international standards to be implemented by Dec 2019 and Inter-Ministerial group will monitor this.
- Finance Min Nirmala Sitharaman: Mega shopping festival will be held across the country in four destinations, by March 2020. It is greater push for people to make contacts and connections.
- Finance Min Nirmala Sitharaman: Mega shopping festival will be a greater push for people to make contacts and connections.
- Relaxation of External Commercial Borrowing (ECB) guidelines for home-buyers in consultation with the RBI.
- A special window worth Rs 10,000 crore to provide last mile funding for housing projects which are non-NPA (Non-performing asset) and non-NCLT (National Company Law Tribunal) projects and are net worth positive in affordable and middle-income category to be set up.
- FM Nirmala Sitharaman: The objective is to focus on the construction of unfinished units.
News24 Bureau with Agency inputs
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