Government Preparation for PE Funds Participation
The government is actively preparing guidelines to facilitate the participation of private equity (PE) funds in the housing sector under the Rajiv Gandhi Awaas Yojana. This ambitious scheme aims to create a slum-free India within the next five years, with the construction of over 10 lakh houses.
Objective of the Scheme
The primary objective of the Rajiv Gandhi Awaas Yojana is to provide affordable housing to millions of households across the country. To achieve this goal, the government is keen to collaborate with private funds.
PE Funds Interest
According to Sachin Johri, the managing director of IDFC Projects Equity, a significant number of private equity firms are expressing their willingness to invest in such projects, with a potential stake of 40-50%.
Collaboration Efforts
This initiative reflects the government's strategic efforts to leverage private capital to accelerate the development of affordable housing units. The scheme not only aims to address the housing crisis but also to improve the quality of life for numerous families.
Conclusion
The involvement of PE funds in the housing sector under the Rajiv Gandhi Awaas Yojana marks a pivotal step towards achieving the vision of a slum-free India. With over 10 lakh houses planned for construction, this collaboration holds immense potential for transforming the residential real estate landscape.