FDI, ECB and investment necessitate in mobilising fund for Urban Development mission

By Accommodation Times News Services

home loans cheaper thanks to rbiVenkaiah Naidu, Housing and Urban Poverty Alleviation Minister has specifically urged the States and ULBs to strive more to ensure housing for all the urban poor by the year 2022. Referring to mobilization of required funds and resources for urban housing scheme, he informed the States and ULBs that there is substantial scope for Foreign Direct Investment in construction sector including affordable housing.

Union Cabinet had cleared Rs 50,000 crore as central assistance for 100 smart cities. Each city can get Rs 100 crore of central funds annually for five years; the rest has to be financed by states, local bodies and private parties. Hence, states, local bodies and developers has to plan allocation of funds through various sources like FDI, External Commercial Borrowings and investments.

At the launch of three urban development mission Prime Minister Narendra Modi pitched for FDI, he said, “We should think how to bring maximum Foreign Direct Investment for urban infrastructure. We should think how to attract more and more overseas funds and change the situation in the stipulated period.”

Since long time relaxation of norms for FDI in the construction sector to boost investment in the real estate sector especially the affordable housing segment is quite high, as this will ease the development process of housing.

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