INSUBCONTINENT EXCLUSIVE:
In a bid to help the non-banking finance companies (NBFCs) and real estate companies, the Centre is considering more relief measures for
In the past few months the government has announced few measures to ease liquidity and the credit crunch in the economy.According to
sources, the government is weighing the option of unburdening some of the major NBFCs of stress assets through a dedicated scheme
A stressed asset fund may be created to buy out the stressed financial assets.Further, the RBI is likely to consider proposals from finance
ministry and Prime Minister's Office to let the banks take the decisions of not classifying them as default or special mention accounts
(SMA) and go for one time recast of selective real estate companies' loans.RBI, if allows banks to one-time rollover realty loans recast for
temporarily removing the NPA or even SMA accounts tag, it will be done on a case to case basis for projects which are at an advanced stage
but stalled due to funding because of repayment woes, projects with positive cash flows.It is not for the entire industry, but to sound
projects which banks will decide on commercial judgement after being empowered by the RBI, sources said.This would call for recast of real
One time recast would mean a one-time rollover for real estate developers for loan repayments which will not classify their loans as SMA or
And this will help them approach funding agencies or market without having any doubt on their profiles, said sources adding this is being
actively pursued as the industry has suggested it for as an option for meeting liquidity gap.PMO, Finance ministry and the RBI have taken
several steps for resurrecting the real estate sector, seen as key to reflect growth and demand for economy.Government recently announced
setting up of Rs 25,000 crore alternative investment fund to revive realty sector after a survey showed that around 4.58 lakh housing units
were stuck in India.Finance Minister Nirmala Sitharaman had said an internal survey showed that around 4.58 lakh housing units were stuck in
India with over 1,600 realty projects stalled.The Cabinet also approved an establishment of 'Special Window' to provide priority debt
financing for completion of stalled housing projects in the affordable and middle-income housing sector.Real estate industry associations -
CREDAI and NAREDCO have also been seeking this one-time rollover.
