EXCLUSIVE: Big boost to real estate! Modi Government to bring special package soon, say sources

After giving a special package to bail out to the struggling auto and banking sector, the Narendra Modi Government is mulling to announce a special package for the Indian real estate sector as well. Zee Media has learned that Modi 2.0 government may announce Rs 8,000 crore special package to bail out the stuck real estate projects. The source has told Zee Business TV that the decision to announce a special package to the real estate business was taken on September 2 during the meeting between the Finance Minister Nirmala Sitharaman and Ministry of Housing and Urban Affairs in India Hardeep Puri. 

The special package announcement may take place in this week itself. The source also revealed that there is provision for additional fund allocation to the housing finance companies in the special package.

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Top 5 takeaways of the real estate business special package that is coming soon are as follows:

1] Addition funds for housing finance companies;

2] Ease in credit line policy by banks to the real estate developers;

3]  Rs 8,000 crore special package for the stuck projects;

4] Expanding the affordable housing projects reach; and

5] Increasing the upper limit of Affordable Housing in urban area from Rs 45 lakh to Rs 70 lakh.

Speaking on the step to be taken by the Narendra Modi government to bail out the struggling real estate stick projects and housing finance companies, Naveen Raheja, Former Chairman at NAREDCO said, "The move is a welcome step, But, to maximise the utility of the special package to be announced by the Narendra Modi government, the funds has to be distributed across all RERA authorities. There should be monitoring from RERA after allocation of funds to stuck projects and if possible, a customer representative should be taken on the board that would decide the package for various real estate projects facing the stuck project problems."