New Delhi, Nov 26 (SocialNews.XYZ) In a bid to help the real estate companies access hurdle free funding without having the NPA tag and complete the unfinished projects, RBI is likely to consider proposals from finance ministry and Prime Minister's Office to let the banks take the decisions of not classifying them as default or special mention accounts (SMA) and go for one time recast of selective real estate companies' loans.
If RBI allows banks to one-time rollover realty loans recast for temporarily removing the NPA or even SMA accounts tag, it will be done on a case to case basis for projects which are at an advanced stage but stalled due to funding because of repayment woes.
It is not for the entire industry, but to sound projects which banks will decide on commercial judgement after being empowered by RBI, sources said.
One time recast would mean a one time rollover for real estate developers for loan repayments which will not classify their loans as SMA or NPA. And this will help them approach funding agencies or market without having any doubt on their profiles, said sources adding this is being actively pursued as the industry has suggested it as an option for meeting liquidity gap.
PMO, Finance ministry and RBI have taken several steps for resurrecting the real estate sector, seen as a key sector to reflect growth and demand for economy.
Government recently announced setting up of Rs 25,000 crore alternative investment fund to revive realty sector after a survey showed that around 4.58 lakh housing units were stuck in India.
Finance Minister Nirmala Sitharaman had said an internal survey showed that around 4.58 lakh housing units were stuck in India with over 1,600 realty projects stalled.
The Cabinet also approved an establishment of 'Special Window' to provide priority debt financing for completion of stalled housing projects in the affordable and middle-income housing sector.
Real estate industry associations - CREDAI and NAREDCO have been seeking this one-time rollover.
Source: IANS
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