The Union Cabinet has approved constituting a Rs 250-billion alternative investment fund (AIF) for the revival of around 1,600 stalled housing projects across major cities in the country. The AIF will be a special window to provide priority debt financing for completion of projects in the affordable and middle-income categories, according to Finance Minister Nirmala Sitharaman.

The government has decided to include projects declared as non-performing assets (NPAs) and those which are undergoing insolvency at the National Company Law Tribunal (NCLT) to be considered for financing from the AIF. The funding will be applicable to projects registered under the Real Estate (Regulation and Development) Act (RERA).