The Indian government in its national budget for the fiscal year 2025-26 has proposed allocating an estimated INR 150 billion ($1.72 billion) in funding for affordable mid-income housing with a focus on providing finance to complete stalled housing projects, a government official said on Tuesday, February 4, citing budget documents.
The fund will be established as a blended finance facility, with contributions from the government, banks, and private investors, the official said.
The fund will aim at the expeditious completion of 100,000 housing units.
This will be the second such fund, after the first one set up in 2019 with a corpus of $1.78 billion to provide priority debt financing for the completion of stalled residential projects.
With the first tranche of the fund, construction of about 50,000 housing units has been completed and another 40,000 units will be completed this year, the official said.