2 lakh incomplete units in NCR may benefit from Rs 25,000 crore realty fund

NEW DELHI: The government’s move to create a Rs 25,000 crore stress fund for stalled housing projects will benefit at least 2 lakh units in Delhi and its satellite cities, real estate developers in the National Capital Region said.
“The industry is beyond big names and in Noida, Ghaziabad and Greater Noida, there are about 300 projects having 2 lakh units that are waiting for funds. Once the fund flow starts, the Rs 25,000 crore will bring Rs 1 lakh crore to the economy,” said Gaurav Gupta, a director at Ghaziabad-based SG Estates.

Developers feel only 10,000-20,000 of the about 40,000 stuck flats in Gurgaon will be eligible for the fund, since the property rate is higher there and most of the flats cost more than Rs 1.5 crore, the cap set for support under the scheme.

“If the government decides to go ahead with the cap, projects in some of the township might not get the funding as some of the units there are of more than Rs 1.5 crore. However, the release of the fund will bring back the confidence in the real estate market,” said Getamber Anand, the chairman of Noida-based ATS Infrastructure. According to property consultant ANAROCK, some 5.76 lakh units (launched in 2013 or before) across budget segments are stuck in various stages of non-completion in the top seven Indian cities alone.

“This (support) will undoubtedly expedite delivery of dwelling units which are currently stuck. But the key to success will be both expedition and execution of the process,” said Manoj Gaur, the managing director of Noida-based Gaurs Group. “Also, some of the conditions like positive net worth of the projects (a condition for funding) in totality need to be considered, instead of calculating tower-wise positive net worth.”

Homebuyers would be the biggest beneficiary of the move, but developers also stand to benefit going forward, said Gulshan Homz director Deepak Kapoor.