Govt approves Rs 25,000 Cr fund to revive stalled housing projects :-
The government has approved a fund of Rs 25,000 crore for the reviving of stalled housing projects across the country. Finance Minister Nirmala Sitharaman informed in a press conference on November 6, 2019. The cabinet has also approved making special provisions to provide priority loans to projects of affordable houses.
Nirmala Sitharaman informed in a press conference that the government will provide 10,000 crore rupees in this Alternative Investment Fund (AIF). SBI and LIC will provide the remaining Rs 15,000 crore.
The Finance Minister said that 1,600 housing projects of 4.58 lakh houses across the country are stuck. Funds will be provided from AIF for these projects. This step has been taken to provide employment opportunities and to increase demand in cement, iron and steel industry.
• Nirmala Sitharaman said that according to an estimate, around 1600 housing projects have stalled in many cities like Mumbai, Delhi, Chennai, Bengaluru, Ahmedabad.
• The government is creating a special fund to boost the housing sector, with the government putting in 10,000 crores. This fund will be a total of 25,000 crores.
• This fund will be created under the category of Alternative Investment Fund (AIF) and it will be registered with SEBI.
• The Finance Minister has also clarified that if a project of a unit has been started and is not completed, it will get support, but another project of the same company which has not been started, will not get the benefit.
What is Alternative Investment Fund?
It means any fund incorporated or established in India which is a privately collective investment vehicle. Alternative Investment Fund or AIF collects funds from certain investors for investing it in accordance with a defined investment policy for the benefit of its investors. The investors of funds can be either Indian or foreigners. However, it doesn’t include funds covered under SEBI (Collective Investment Schemes) Regulations, 1999, SEBI (Mutual Funds) Regulations, 1996 or any other regulations of the Board to regulate fund management activities.
What is Angel Fund?
Angel Fund is basically a category of Venture Capital Fund (VCF) comes under AIF. It raises funds from angel investors. They invest their money in accordance with the provisions of Chapter III-A of AIF Regulations