The Indian Government along with foreign institutional investors (FII) and private equity funds is planning a special purpose vehicle (SPV) called the National Shelter Fund to provide affordable houses in the country.
The government would raise its contribution for the fund through a proposed 1% cess on stamp duty collections levied by states. The creation of SPV is likely to be announced in the forthcoming Budget.
The proposed SPV will be on the lines of Istithmar of Dubai and Temasek of Singapore, but unlike these funds, the fund would only be used for domestic purposes. This would infuse a fresh leash of life into the country’s crumbling housing sector. The fund, with an initial corpus of Rs 1000 crores, would be invested in middle income group (MIG) housing across the nation.
More in the article in The Economic Times.
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