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Banks interested in funding Amrapali’s stalled projects, says NBCC

The pace of construction of housing units of erstwhile Group at Noida and Greater Noida is expected to pick up as banks have shown interest in funding the stalled projects.

Days after SBICAP Ventures Ltd, which is managing the government’s Rs 25,000-crore special window fund to revive stalled housing projects signed an MoU with Court Receiver for infusing Rs 650 crore in six projects, the monitoring Committee appointed by the Supreme Court held a meeting with nationalised and private banks to discuss the financing for Amrapali Projects on Monday.

“More than 42,000 homebuyers waiting possession or their dream homes will be benefited by this progressive initiative,”

said in a statement.

Currently, the company is facing execution hurdles due to slow inflow of cash which is expected to get sorted soon.

NBCC has also invited bid to sell embattled real estate developer Amrapali Group’s 5,192 housing units in Noida and Greater Noida, valued at Rs 2,182.57 crore.

NBCC was struggling to fund the construction and many contractors had written to the corporation threatening to stop the work as payment for work was not released for four months.

ET had reported that around 40,000 homebuyers in Amrapali’s properties are likely to face further delay in delivery of their houses, as the contractors working on the projects have threatened to stop work after continuous delays in payments from NBCC.

NBCC is involved in the completion of 23 Amrapalihousing projects, which were stuck amid a fund crunch and alleged financial mismanagement at the real estate firm.

NBCC took over the projects after a Supreme Court order.

The cost for the completion of these projects is estimated at about Rs 8,500 crore, according to experts.

NBCC is looking to raise the balance amount through sale of unsold units, additional FAR and balance receivables from the existing customers. The housing units are expected to be priced lower than the market rate to attract customers.

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