THE GIST of Editorial for UPSC Exams : 09 November 2019 (Special Window for funding of stalled Housing projects (Indian Express))

Special Window for funding of stalled Housing projects (Indian Express)

Mains Paper 3: Economy
Prelims level : Housing schemes
Mains level: The Special Window will provide last-mile funding to projects that meet the following criteria:

Context

• The Union Cabinet approved the establishment of a ‘Special Window’ to provide priority debt financing for the completion of stalled housing projects that are in the Affordable and Middle-Income Housing sector.
  The Special Window will provide last-mile funding to projects that meet the following criteria:
• Net-worth positive, The affordable and middle-income housing project, On-going projects registered with RERA, Reference by the existing lender

Will include stressed projects classified as NPA and those in NCLT

• Fund(s) created under the Special Window will be set up as priority debt funds. A detailed Investment Policy will be laid down to guide the selection of projects to be financed through a detailed due-diligence process that will include legal due-diligence, title due diligence, micro-market analysis, financial analysis, etc.
• The final decision will be taken by the Investment Committee of each Fund comprising of experienced professionals and industry experts. The Investment Committee will approve individual deals independently as per Investment Policy ensuring alignment with investment objectives of the Fund.

Key highlights:

• The funds will be set up as Category-II Alternate Investment (AIFs) Fund registered with SEBI. These funds would be entrusted to professional Investment Managers. For the first AIF under the Special Window, it is proposed that SBICAP Ventures Limited shall be engaged to be the Investment Manager.
• For the purposes of funds to be set up, the government shall act as the Sponsor and the total funds committed by the Government would be up to INR 10,000 crore.
• The Special Window would provide funds to stalled housing projects enabling them to complete unfinished projects and consequently ensure delivery of homes to a large number of home-buyers.

Way forward

• This will, in due course, help relieve the financial stress faced by a large number of middle-class homebuyers who have invested their hard-earned money.
• This will also restore trust between buyers and developers and boost the sentiments of the housing sector as a whole and release a large number of funds stuck in these projects for productive use in the economy.

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Prelims Questions:

Q.1) With reference to the Chavang Kut, consider the following statements:
1. It is one of the most important festivals of Kuki-Chin-Mizo communities.
2. The festival is observed to mark the end of the harvesting season and also to thank deities for a good harvest season.

Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

Answer: C
Mains Questions:
Q.1) Describe the highlights of the Special Window for funding of stalled Housing projects.