Union Housing and Urban Affairs Minister Manohar Lal Khattar on February 14 indicated that a dedicated fund could be set up to revive stuck housing projects approved in the pre-RERA era, in line with industry suggestions, to enable a win-win resolution for both developers and homebuyers.
Speaking on the second day of the NAREDCO Conclave 2026, the minister indicated that a dedicated fund could be created to finance stalled housing projects approved before the implementation of the Real Estate (Regulation and Development) Act (RERA).
“There are wider and broader suggestions from the industry that a dedicated fund could help both promoters and homebuyers reach a win-win settlement in pre-RERA stalled projects,” he said.
The minister outlined a multi-pronged strategy focused on reviving stuck projects, fast-tracking affordable housing, and unlocking underutilised urban land parcels.
He said money could be organised through CSR contributions in proposed charitable institutions to generate funds for poorer sections of the society, since banking and financial institutions have not been sufficiently proactive in serving this segment.
During discussions at the conclave, NAREDCO proposed the creation of a government-backed fund of around ₹2.5 lakh crore to support the revival of stalled housing projects. Khattar said the size and structure of such a fund could be debated, but acknowledged that access to timely financing remains critical to restarting incomplete developments.
On urban redevelopment, Khattar said the government plans to develop nearly 700–750 slum settlements in and around the National Capital Territory (NCT). He noted that a policy framework for this initiative is currently being deliberated at a high level among various government authorities and stakeholders. “Once this proposal takes off, affordable housing will receive a significant fillip in and around the NCT,” he said.
On land availability
Addressing concerns about land availability, the minister suggested that land availability could be encouraged through cross-subsidisation, provided a broad consensus among stakeholders emerges.
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NAREDCO chairman Dr Niranjan Hiranandani said the government has made significant efforts to prioritise housing in the Indian economy, but stressed that more needs to be done. “If India is to become a Viksit Bharat, the contribution of the housing sector must rise to 15% of GDP by 2047,” he said. He also called for faster policy decisions to promote rental housing on economies-of-scale lines, which would benefit those unable to afford home ownership.
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At the event, NAREDCO president Parveen Jain and Minister Khattar released a joint KPMG-NAREDCO knowledge report outlining a detailed roadmap for the real estate sector in line with the vision of Viksit Bharat.
On the first day of the Naredco event, Jain had emphasised Housing for All and said there is a need to promote affordable housing and easy access to finance for both builders and homebuyers. Jain said the government should incentivise rental housing.