Earlier this month the government approved a 100 billion Indian rupee ($1.4 billion) fund to help clear unfinished building projects, with an additional 150 billion rupees from state-run financial institutions.
While the government said that the fund would help revive more than 1,600 moribund housing projects, that may not be enough.
“Whether the announced fund will suffice to unfetter all this inventory is a big question mark. Financing options, including banks and non-banking financial companies, have dried out and investors prefer commercial real estate,” said Anuj Puri, chairman of ANAROCK Property Consultants, based in Mumbai.
“However, the approved funds can rescue lakhs (thousands) of homebuyers who have invested in stuck projects,” Puri said.Read More..
