Supertech, a prominent real estate developer, has requested Rs 1,500 crore from the government’s newly established stress fund to finalize 12 housing projects in Noida and Greater Noida. These projects, comprising 20,000 flats, are nearing completion and require last-mile funding to ensure timely delivery to homebuyers. The initiative aims to revitalize stalled housing projects across India.
- Supertech seeks funding to complete 12 housing projects in Uttar Pradesh.
- The government has set up a Rs 25,000-crore stress fund to aid stalled projects.
Funding Support for Stalled Housing Projects
The Indian government has introduced a Rs 25,000-crore stress fund to assist developers in completing over 1,500 stalled housing projects across the country. This initiative is particularly significant for the National Capital Region (NCR), which has been adversely affected by delays in project completions from several builders, including Amrapali, Unitech, and Jaypee Infratech. By providing funding to projects that are RERA-registered with positive net worth, the government aims to not only assist developers like Supertech but also to relieve the plight of lakhs of homebuyers who are awaiting possession of their homes. The newly created fund is expected to help complete approximately 4.58 lakh housing units in various locations.
Supertech’s Strategic Move for Completion
Supertech Ltd, under the leadership of Chairman R K Arora, has identified 12 projects that are at an advanced stage of completion and have requested funding to finalize the construction of 20,000 flats. According to Arora, the company has applied for Rs 1,500 crore to secure the necessary last-mile funding within the next 1-2 years. The state regulatory authority and the Uttar Pradesh government are supporting the company in this endeavor. The Finance Ministry further clarified that the maximum funding for any single project from the stress fund would be capped at Rs 400 crore, which sets a clear framework for financial planning among developers. This funding strategy is expected to reinvigorate demand in the sluggish residential property market, providing a much-needed boost to the sector.
The stress fund is managed by SBICAP Ventures, with the government contributing Rs 10,000 crore, while the rest will be provided by State Bank of India (SBI) and Life Insurance Corporation (LIC). This strategic partnership aims to tackle the immense backlog of unfinished projects and help restore confidence among homebuyers.
Future Impact on the Real Estate Market
The establishment of the stress fund is likely to have far-reaching implications for the Indian real estate market. By providing much-needed financial support to developers, it not only aims to expedite project completions but also seeks to restore trust among homebuyers who have faced uncertainties. As funding becomes available, developers can focus on delivering properties, which could lead to a gradual recovery in housing demand. This initiative could also encourage other developers to approach the government for assistance, further catalyzing the revival of the sector. In the long run, prompt completion of housing projects may lead to increased consumer confidence, potentially stimulating growth in the real estate market throughout the country.
