InvestorQ : What are the key announcements made by Nirmala Sitharaman to boost the housing and exports sector over the week end?
Rutuja Nigam made post

What are the key announcements made by Nirmala Sitharaman to boost the housing and exports sector over the week end?

Answer
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Arti Chavan answered.
12 months ago


The finance minister, in a continuation of her weekly presentations, made some key announcements pertaining to the housing and exports sector as part of the ongoing reforms process. Here are some of the major announcements.

· There will be a stress fund worth Rs.10,000 crore set up by the government to complete stalled housing projects. This fund will not cover the projects that are currently under NPA or under NCLT. This will be largely for affordable and middle class housing.

· ECB (External commercial borrowing) guidelines will be eased for affordable housing projects for home buyers eligible under the PMAY (Pradhan Mantri Awas Yojana).

· To encourage government employees to acquire an own home, the interest rate on house building advance will be lowered and linked to the 10-year G-Sec rate.

· LIC and other institutions will also bring in capital to beef up the Stress Fund for last-mile completion of unfinished projects.

· To encourage exports, the government is planning Dubai like shopping festivals across four locations in India from 2020 onwards.

· Scrapping the MEIS scheme for exporters and replacing it with a Remission of duties scheme to encourage exporters. This is likely to cost the government Rs.50,000 crore.

· All input tax credits for exporters to be made automated with online and seamless credits for inputs paid on export eligible items. This should largely address the working capital challenges of the export oriented sector.

· Government has made an additional allocation of Rs.1700 crore for expanding the scope of the export credit guarantee scheme, reducing the insurance premium costs for MSMEs,

· Will set up a Free Trade Agreement utilization mission to utilize concessional tariffs in each FTA and also set goals and monitor FTA utilization.

Broadly, the schemes are likely to be favouring the low cost housing sector and the export of traditional goods and services.