NEW DELHI: Four major public sector banks have offered to infuse fresh funds to complete about half a dozen stalled housing projects in
if the state-run National Buildings Construction Corporation (
) steps in.
The government has asked NBCC to give a list of such projects and the amount required to complete each of them, sources in the banking sector said.
TOI has learnt that the government is keen to finalise this plan and start work before the poll code of conduct kicks in ahead of the 2019 general election. The move to complete the projects is likely to send a strong message to a key constituency – the middle class – and come as a huge relief for harassed homebuyers.
Sources said that the banks have told the government that they will infuse funds only if the apartments and unutilised land are mortgaged for the amount lent by them to complete the projects. The banks have said that they will recover the freshly infused funds by selling the apartments or monetising the land once the projects get completed.
The banks have said that they will lend only in projects which have turned bad and are not getting any funding. The modalities were worked out last week at a meeting of representatives of four banks which include SBI, Punjab National Bank and Allahabad Bank and government departments.
Once the model works, the government would replicate it in more projects.
About 3 lakh homebuyers have been waiting for their flats in Noida and Greater Noida, which has become a major headache for the central and UP governments. The matter of errant builders and stuck projects are pending before courts.
The meeting of bankers and government officials took place barely days after interim finance minister Piyush Goyal held a meeting with banks where the issue of unfinished projects came up during discussion. TOI on January 30 had first reported how the government was keen to fast track creating a dedicated fund to release stress and speed up delivery of these apartments or is to use undeveloped land parcels with developers to raise fund to finance the construction of flats.
Sources said, in a lot of cases infusion of additional funds can do the trick. With builders unable to raise money, even homebuyers have stopped making construction-linked payments, creating a logjam that has been tough to break.
Meanwhile, the Supreme Court is scheduled to take up the case of Amrapali next week, which is likely to set the direction for reviving the stalled projects.