Government remedies against billions of inventories are trivial and overblown

25,000 crore Alternative Investment Fund can not solve this sector, so the government has other options right?

Economic statistics were weak from almost all sectors, but till last, the government kept sleeping in Kumbhakarna and refusing to acknowledge that there was a recession. It is understood that all decisions are financial or commercial, defense related or subject to the Ministry of External Affairs, all decisions are taken from the Prime Minister's Office.

Too late, the central government has accepted the downturn and has taken some steps to ensure economic development and has given relief to some sectors. For the real estate sector, one step has been taken in the form of Rs.

The direction may be correct but the amount is insufficient. There are doubts about the implementation and inefficiency of the fund because the amount that appears to be obvious is relatively small in size and need for the real estate sector. There is an inventory of 1.5 lakh crore nationwide. Real estate plays a vital role in the economy of the country. The sector contributes 1 to 3 percent of the total GDP. This sector is also important for the country's employment generation. Consumption of cement and steel is essential to keep this area afloat. But due to the government's erroneous policies, the sector is shrouded in devastation. And the government is doing trivial and outrageous measures.

Moreover, the real estate sector has a direct relationship with the country's economic sector. The sector will be deeply entrenched and developers will be seriously pressured on the financial sector of the country if they withdraw their responsibility to pay.

Seven per cent of the credit to the builders and developers is directly or indirectly linked to seven different banks and non-banking financial companies. Many real estate projects have been declared non-performing assets under the Allreddy National Company Law Tribunal (NCST). Now, if government assistance is not available, more developers will be declared default and the status of builders' banks will be even worse.

At present there are plans that have been incomplete due to lack of work. Anything that is lost due to lack of financing will help fund the Alternative Fund. The plans will be completed, the flats will be sold and the builders bank money will be released. Thus, if the government changes its grandchildren and helps the real estate sector, the sector will boom. This will have an impact on the overall development of the country as the revival will affect the employment cement and steel sectors. The condition of genetic areas like furniture, copper, sanitary ware and paint will also improve.

Even if we do not doubt the intentions of the central government, one thing is clear that considering the size of the entire real estate sector, the fund of Rs. These schemes could spark short-term funding short-term funds. But for large NCR and MMRDA projects, this amount will be insignificant. In addition, private investors will be hesitant to invest funds when they see the element of risk in the plans.

Why the government takes steps to ensure that these funds are used effectively, will also be an important factor. The method of implementation will play an important role in the success of the scheme.

As per the government note, the Investment Manager will be able to replace the developer. Of course, meeting these plans in the right way will be a major challenge, if needed. It is the responsibility of the Investment Manager to ensure that the funds allocated to a particular plan are not secretly transferred to other plans. Investors' confidence will increase if the scheme is completed on time after giving funds. Otherwise it will tremble.

Demand and supply theory will also be an important factor. The Alternative Investment Fund does not provide the required return to investors if the demand in the real estate sector does not rise. If there are no customers in the market then the increased supply due to the funds will further aggravate the financial condition of the sector. Despite the downturn in the real estate sector, the value of the pallets in the market has not dropped significantly. In the metropolitan region of Mumbai this year, the cost of flats has fallen by only three per cent. And the National Capital Region has increased by 5%.

Government of India has announced a tax deduction for affordable housing. Further subsidies to homeowners, exemption of interest on home loan payments, category in terms of cost of pallets and relief, etc., will be subject to change in the area. This field does not have a key after the collision hit. If the situation worsens, then real estate will also be telecommuted. The chairman of the top telecom company had almost threatened that if government help was not received, he would have no choice but to file bankruptcy.