'Last-mile funding': Centre announces steps to boost housing, facilitate homebuyers

Finance Minister Nirmala Sitharaman took one more step to boost Indian economic, announced measures related to exports and home buyers. Sitharaman announced a total of six steps to boost exports incorporating Dubai-like mega annual shopping festival from next year, new automatic refund system for exporters from next month and the new RoDTEP scheme (Remission of Duties or Taxes on Export Product) on export duties.

Now, the government announced an Rs 10,000 crore special window to provide last-mile funding for the completion of ongoing housing projects. However, the fund will not cover the projects affected by NPA and NCLT issues.

Major Implementations

The Finance Minister Nirmala Sitharaman said with this scheme, the government will contribute 10,000 crores for the special window, and it is expected that outside investors will also invest the same amount.

This window will be very supportive to complete affordable and middle-income housing projects.

With this plan, the interest rate on housing building advance will be lowered and linked to the 10-year G-sec yields. And, government employees contribute to a major component of demand for houses. It will encourage more government workers to buy new houses.

Authority will relax the external commercial borrowing (ECB) guidelines to help housing developers obtain overseas funds and to facilitate the financing of homebuyers who are eligible under Pradhan Mantri Awas Yojna in consultation with the central bank.