Moneycontrol PRO
Upcoming Event:Join us for the exciting discussion with Danone on role of nutrition, protein in working professionals’ quality of life on July 31, 3pm.

Naredco team meets FM; demands one-time loan restructuring, funding for stuck projects

The body has also demanded extending suspension of some provisions of insolvency law by one more year.

Real estate developers have urged Finance Minister Nirmala Sitharaman to direct the Reserve Bank of India to implement the one-time rollover of disbursed project loans by banks and financial institutions and have called for last-mile funding to complete stalled projects.

A delegation of developers’ body NAREDCO led by RK Arora, chairman Supertech Group and president, NAREDCO, met Finance Minister Nirmala Sitharaman on July 15 and submitted a memorandum of these demands.

The body has also demanded extending suspension of some provisions of insolvency law by one more year.

Arora said the delegation informed the finance minister about the liquidity crisis being faced by the real estate sector due to the impact of the COVID-19 pandemic and the prolonged lockdown.

All the real estate projects are on the brink of collapse and unless the government supports the industry, the project implementation will come to a standstill, Arora said.

Close

COVID-19 Vaccine

Frequently Asked Questions

View more
How does a vaccine work?

A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine.

How many types of vaccines are there?

There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine.

What does it take to develop a vaccine of this kind?

Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time.

View more
Show

The delegation also urged the finance minister to direct existing lender banks to provide last-mile funding on the lines of the SWAMIH AIF.

There are more than 4,000 projects all over the country that require last-mile funding. Since the existing lenders are not releasing their charge against existing loans and not giving NOC, the developers are deprived of the benefit of the announced SWAMIH Alternative Investment Fund, it said.

The finance minister was informed of the problems being faced by Real Estate Sector due to the proceedings being initiated against them under Sections 7, 9 and 10 of the Insolvency & Bankruptcy Code 2016 (IBC).  In March 2020, the enforcement of these sections was suspended for a period of one year until March 2021.

"Since the second wave of COVID-19 has affected all the real estate projects in a much large scale, more than the first wave, it is necessary that time extension for implementation of IBC be allowed for further one year," Arora said.

The finance minister assured the delegation to consider these demands sympathetically, the association said.
Moneycontrol News
first published: Jul 16, 2021 10:01 pm

stay updated

Get Daily News on your Browser
Sections
ISO 27001 - BSI Assurance Mark