PE invite into housing sector in the works
The Economic Times, New Delhi
The government is preparing guidelines for the participation of private equity (PE) funds in housing sector under the Rajiv Gandhi Awaas Yojana, minister of state for urban development Saugata Roy said. The scheme aims to make a slum-free India in five years with construction of over 10 lakh houses.
“The ministry, in consultation with the Planning Commission, is currently processing guidelines to ensure PE’s participation in the Yojana,” he said at a national conclave on private equity in infrastructure organized by Assocham.
The government wants to harness private funds to provide affordable housing to millions of households under the scheme, he added.
“PE funds are keen to park their investments in the Yojana .... Besides, the government cannot generate resources for this on its own,” he said.
As per IDFC Projects Equity managing director Sachin Johri, a large number of PE’s are willing to take stake in such projects to an extent of 40-50 percent. Enumerating benefit of participation of private equities in the scheme, Roy said PE funds will also provide expertise in valuing infrastructure projects, advise in fine-tuning business models, assist in toning up operational efficiencies and strengthening corporate governance.
The urban development ministry is also in talks with the World Bank for a $5 billion loan under Jawaharlal Nehru National Urban Renewal Mission (JNNURM) for improving urban infrastructure, the minister said. The WB loan requested under the JNNURM is expected to be finalized “shortly” after authorities have vetted the attached conditionality, he said.
The Economic Times, New Delhi
The government is preparing guidelines for the participation of private equity (PE) funds in housing sector under the Rajiv Gandhi Awaas Yojana, minister of state for urban development Saugata Roy said. The scheme aims to make a slum-free India in five years with construction of over 10 lakh houses.
“The ministry, in consultation with the Planning Commission, is currently processing guidelines to ensure PE’s participation in the Yojana,” he said at a national conclave on private equity in infrastructure organized by Assocham.
The government wants to harness private funds to provide affordable housing to millions of households under the scheme, he added.
“PE funds are keen to park their investments in the Yojana .... Besides, the government cannot generate resources for this on its own,” he said.
As per IDFC Projects Equity managing director Sachin Johri, a large number of PE’s are willing to take stake in such projects to an extent of 40-50 percent. Enumerating benefit of participation of private equities in the scheme, Roy said PE funds will also provide expertise in valuing infrastructure projects, advise in fine-tuning business models, assist in toning up operational efficiencies and strengthening corporate governance.
The urban development ministry is also in talks with the World Bank for a $5 billion loan under Jawaharlal Nehru National Urban Renewal Mission (JNNURM) for improving urban infrastructure, the minister said. The WB loan requested under the JNNURM is expected to be finalized “shortly” after authorities have vetted the attached conditionality, he said.
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