Realty firm Supertech applies for last-mile funding of Rs 1,500 cr.

Supertech, a real estate company, said on January 5th, that they sought Rs 1,500 crore from the newly established government Stress Fund to complete their 12 ongoing housing projects in Noida and Greater Noida in Uttar Pradesh.

The firm said the 12 projects consisting of 20,000 flats are in an advanced stage and that last mile of funding was required to complete pending work and deliver units to the buyers.

The central state revealed on November that Rs 25,000 crore funds would help to carry out more than 1,500 unfinished housing projects, including those declared NPAs or admitted for insolvency proceedings.

This move would probably help 4.58 lakhs residential units throughout the country. Financing will be given only for RERA ventures with a positive net worth. Real Estate Developers were required to apply for money from this fund.

“We have applied for Rs 1,500 Crore stress fund for our 12 projects in Noida, Greater Noida and Yamuna Expressway, in order to finish 20,000 apartments over one or two years,” R K Arora, Chairman of Supertech Ltd, said to PTI. “We have a Stress Fund eligibility, and hope we will obtain the same,” he said.

Arora said the Government of Uttar Pradesh and the State Regulatory Agency are supporting builders to make requests.

The Ministry of Finance had claimed that the permissible funding for a particular project seeking support from the Special Window or AIF is Rs 400 crore. This fund would include Rs 10,000 crore by the Centre, the rest would be given by SBI and LIC.

Lakhs of home buyers are stranded across the country in multiple abandoned housing projects.

The National Capital Region is the most affected as many builders, including Amrapali, Unitech and Jaypee Infratech, have failed to provide on-time possession of flats.

Developers are banking on this fund not only to save the sector but also to help boost weak demand in the housing market.