Infrastructure stimulus to boost realty

The Finance Ministry’s latest Rs 16200 crore liquidity shot to infrastructure sector will help bolster real estate which is on recovery path.

The Stimulus 3.0 announced by the government has announced measures to infuse liquidity both in infrastructure companies and lenders. The government will be putting in Rs 6000 crore as equity in the NIIF to create a debt platform for infrastructure financing. The platform will help NIIF provide a debt of Rs 1 trillion for infrastructure projects by 2025.Apart from  that Rs 10200 crore will be given as direct support for infrastructure creation. In the earlier stimulus, the  government had earmarked Rs 25000 crore for capital expenses to ensure a total spending of around Rs 4.45 trillion under this head.

Says Mr. Pradeep Aggarwal, Founder & Chairman, Signature Global and Chairman, Assocham National Council on Real Estate, Housing & Urban Development, ” Along with the direct booster shot provided to real estate in Stimulus 3.0, the liquidity infusion into infrastructure will have a multiplier effect. The infrastructure boost in the form of road connectivity, power, piped water etc will improve quality of living , enhancing the attractiveness of real estate projects. This in turn will push up real estate sales, helping in its recovery.

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