Special Liquidity Scheme For NBFCs

The finance minister has announced a special liquidity scheme of up to Rs 30,000 crore for non-banking financial firms. Under the scheme, investment will be made in both primary and secondary market transactions in investment-grade debt of NBFCs, housing financiers and microfinance firms. The securities will be fully guaranteed by the government of India. The government has also widened the ambit of its partial credit guarantee scheme for NBFCs. Up to Rs 45,000 crore liquidity infusion will be provided through the expanded scheme. Mohit Goel, CEO, Omaxe Ltd stated, “We welcome the Government’s decision to extend the timeline for project completion by six months. But more important is the decision to infuse additional liquidity in NBFCs and HFCs as that lack of funding by financial institution is a bigger issue confronting the developers. This will help both NBFCs and real estate sector.” Ram Raheja, Director at S Raheja Realty shared, “We welcome government’s stimulus boost to spur growth and build towards a self-reliant India. The Rs 75,000 cr liquidity boost for NBFCs is a meaningful step and directed in sheer interest of the industry. These steps will help ease the liquidity concerns for the real estate sector as the strengthening of the NBFCs to lend will in turn enable liquidity flow in ecosystem. Any measures directed towards the stimulation of real estate sector will in turn benefit 250 other industries that are directly and indirectly linked to this sector and ultimately help in revival of the economy.”