Mumbai: State Bank of India chairman Rajnish Kumar will soon meet Maharashtra Chief Minister Uddhav Thackeray and NCP chief Sharad Pawar to discuss the multiple options of funding for the cash-strapped realty sector in Mumbai.
Housing Minister Jitendra Awhad, who met Kumar on Tuesday noon, told FPJ, ''SBI chairman has agreed to meet Thackeray and Pawar to discuss funding for the realty sector. The meeting will be organised depending on the availability of CM and Pawar. After that Kumar has agreed to organise the meeting with few other leading bankers to discuss various issues faced by the realty sector regarding finance and decide a roadmap.''
Awhad said the Maha Vikas Aghadi government is serious to provide necessary help for the revival of Mumbai's ailing realty sector. ''Funding is an issue. Non-Banking Finance Companies have constraints while banks are carefully assessing all factors before clearing funds to the realty sector. The government will facilitate meetings with bankers,'' he noted.
Builders Association of India spokesman Anand Gupta said the banks should restart financing of all real estate projects including nonperforming account. ''Banks need to restructure loans and in some cases defer the repayment. In addition, banks should change the definition of non performing asset account. These changes are required for the realty sector to survive and turn the economy,'' he noted.
Anarock Property Consultants in its research paper said, “The liquidity crisis gave no respite to the housing sector. Private equity inflows in residential real estate remained subdued, with major PE funds focusing on the commercial segment in 2019.”
Despite the announcement of the alternative investment fund (AIF) of Rs 25,000 crore to facilitate the completion of stuck affordable and mid-segment homes, smaller developers continued to perish due to extreme financial constraints.
Anarock Property Consultants Chairman Anuj Puri, however, hoped that 2020 may bring revival on Indian real estate with more consolidation and mergers, and some large stuck realty projects be revived by government funds.