Expert panel suggests changes in insolvency law among others to revive stalled realty projects
insolvency law and formulating a scheme offering subsidised interest rates are among the several measures suggested by an expert panel to the Centre for reviving stalled real estate projects in the country. The 14-member panel led by former NITI Aayog chief Amitabh Kant presented the committee's report to Union Housing and Urban Affairs Minister Hardeep Singh Puri on Monday.
The Report of the Committee to examine the issues related to Legacy Stalled Real Estate Projects said to encourage financial institutions to fund stalled projects, a scheme offering subsidised interest rates, similar to MSME, is recommended.
«Such a scheme would reduce perceived risk, stimulate financial support and lead projects to completion.
»Additionally, the Central Government may consider a guarantee fund similar to MSME for such finances.
The MoHUA (Ministry of Housing and Urban Affairs) will prepare a detailed scheme and send it to the Ministry of Finance, in this regard," the report stated. The committee observed that the steps to improve the Internal Rate of Return of these projects would attract more funding and judicial interventions such as Insolvency and Bankruptcy Code should be used only as a last resort.
Project resolution should be a win-win situation for all stakeholders, it said.
Puri said the recommendations of the committee will provide a much-needed shot in the arm for the real estate sector.
«Given the strong forward and backward linkages of the sector, it will also give an impetus to the overall economy, leading to higher growth in future,» Puri said in a post on X, formerly known as Twitter.
He said states and Union territories need to ensure effective implementation of the recommendations made in the report for delivery of
