Published on 20/03/2017 9:44:19 AM | Source: Dion Global Solutions Ltd.

Supertech plans to invest Rs 4k cr to build affordable homes

Posted in Industry News| #Industry #Real Estate Sector

Real estate firm Supertech is planning to invest about Rs 4,000 crore to construct low-cost houses as it expects that demand for affordable housing likely to rise after getting the infrastructure status in budget, as per the media reports. Commenting on the matter, Supertech, Chairman R K Arora said that, Supertech has engaged consultants to raise about Rs 1,000 crore through external commercial borrowing (ECB) to fund the development of 40,000 affordable homes planned over the next 4 years. “The affordable housing has got a big boost in the budget this year.

We are changing building plans of our existing projects in Greater Noida, Yamuna Expressway, Gurgaon, Meerut and Dehradun to launch low-cost homes,” he told, quoted PTI. Asked about the investment, Arora said, “We already have land. On construction, we will require Rs 3,500-4,000 crore for 40,000 flats.” He said the company has appointed consultants to raise funds through ECB route.

"We will raise about 25 per cent of the total investment. Rest can be funded through internal accruals and advances from customers," Arora said. The affordable housing projects would meet the criteria laid in the Prime Minister's Awas Yojna (PMAY) so that prospective buyers could get the loan subsidy up to 4 per cent, he added. The government in the budget announced infrastructure status to affordable housing. It also proposed to amend the Section 80-IBA, relaxing the condition of period of completion of the affordable housing projects for claiming deduction from the current three years to five years.