Budget 2024: NAREDCO seeks Rs 25,000 crore realty fund 

Allocation of at least Rs 25,000 crore for next fiscal alone shall boost the economy, create more jobs and attract huge investments,” said Rajan Bandelkar, President, NAREDCO.
Image used for representational purpose only. (Photo | EPS)
Image used for representational purpose only. (Photo | EPS)

NEW DELHI:  Real estate developers’ body National Real Estate Development Council (NAREDCO) has urged the government to launch the second fund under the Special Window for Affordable and Mid-Income Housing (SWAMIH-2) in the upcoming Union Budget 2023-2024 to be presented on 
February 1.

In its letter to finance minister Nirmala Sitharaman, NAREDCO sought extension of the scheme to new projects and recommended including stress-free projects and commercial projects to the list of beneficiaries, widening scope in a bid to continue to support the real estate sector in the country.. “Extending the duration and expanding the scope of this fund would do wonders. Allocation of at least Rs 25,000 crore for next fiscal alone shall boost the economy, create more jobs and attract huge investments,” said Rajan Bandelkar, President, NAREDCO.

The industry body has also recommended that the fund should support complete project funding without factoring the sales inflows. It also suggested that under the special purpose fund, funding should be provided to all projects irrespective of their risk rating, however, with close monitoring of projects and airtight processes.

Sathish Kumar M, Chairman, NAREDCO Finance Committee (NFC), said, “Relaxing the eligibility criteria for SWAMIH fund beneficiaries, with strict monitoring and oversight would lead to massive growth in realty sector and the economy as a whole along with ensuring compliance and benefits to the genuine beneficiaries.”

First launched in November 2019 with a total corpus of Rs 15,530 crore, SWAMIH Investment Fund was formed to complete construction of stalled, brownfield, RERA-registered residential developments that are in the affordable housing or mid-income category, and are net worth positive and require last mile funding to complete construction.

Venkatesh Gopalkrishnan, CEO, Shapoorji Pallonji Real Estate, said, “As one of the important measures to support the industry, the government should put aside more funds under the stressed fund SWAMIH, as it will help improve consumer sentiment and residential activity. The banks and NBFCs should be strengthened to ensure that the industry can raise funds from these institutions.”

Most real estate players are also hoping to get a relaxation on the home loan cap of Rs 2 lakhs to be increased to Rs 5 lakhs per annum in the upcoming budget.

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