Government plans Provident Fund investment boost for infrastructure, low cost housing
The finance ministry is suggesting changes in the investment rules from April 2015
Feb 03, 2015
Source : The Economic Times

 

New Delhi: The finance ministry is proposing changes in the investment norms for non-government provident funds as well as superannuation and gratuity funds to boost flow of funds into infrastructure and affordable housing — a move that is expected to trigger a fresh tussle with the Employees Provident Fund Organization, which usually rejects North Block's suggestions for more liberal rules.

 

The finance ministry is suggesting changes in the investment rules from April 2015, with the draft rules having been finalized at the behest of the highways ministry, which is looking at long-term funding to finance highways, where private developers are finding it tough to raise resources, given the high leverage levels and reluctance of banks to lend.

 

As a result, within the overall ceiling of 55% investment in debt and related instruments, the finance ministry is recommending investment in listed, or proposed to be listed, debt securities issued by companies engaged mainly in "the business of development or operation of infrastructure or construction/ finance of low-cost housing". Similarly, infrastructure debt funds will also be eligible investments. The only rider is a minimum credit rating of 'AA'.

 

Apart from railways, it will also include securities issued by any authority, which is not a "body corporate" and has been formed solely for promoting development of infrastructure.

Latest Realty News

Mumbai's-low-cost-housing-project-a-non-starter
Feb 02, 2015
Mumbai: It has been five years since the Maharashtra Chamber of Housing Industry (MCHI-CREDAI) entered into a pact with the state government for an ambitious project of building five lakh low-cost houses in Mumbai, but the project has been a non-starter
Builder-told-to-hand-over-flat-or-pay-Rs-25.86-lakh-to-senior-citizen
Feb 02, 2015
PUNE: The state consumer disputes redressal commission has ordered a city-based builder to either hand over a 640 sq ft flat in a redevelopment project in Budhwar Peth or pay Rs 25.86 lakh compensation to a retired government official
State-approves-leaseback-policy-for-abadi-land
Feb 02, 2015
GREATER NOIDA: The Uttar Pradesh government on Wednesday approved a leaseback policy for abadi land in the city.
BDA-demolishes-structures-for-parking-space
Feb 02, 2015
BHUBANESWAR: The Bhubaneswar Development Authority (BDA) and police jointly demolished the concrete canopy and boundary wall at Subham Market complex in Unit-III to create parking space
25-tech-institutions-land-in-trouble
Feb 02, 2015
BHUBANESWAR: The state government has issued show-cause notices to 25 technical institutions, including a university, for encroachment of government land
Indian-real-estate-market-a-developer's-dream:-Indo-Canadian-billionaire
Feb 02, 2015
Chandigarh: Having made his millions in the Canadian real estate market, Canada's first Sikh billionaire, Bob Dhillon, feels India's real estate market has a lot of potential
Rajkot-Municipal-Corporation-to-launch-own-housing-project
Feb 02, 2015
RAJKOT: The Rajkot Municipal Corporation (RMC) would launch its own housing project
All-eyes-on-Raghuram-Rajan:-RBI-may-cut-rates-on-Tuesday;-EMIs-set-to-come-down
Feb 02, 2015
New Delhi: If you are planning to buy a house or a car, or have been paying EMIs for your home loan, you would probably be keeping an eye on expected announcements from the Reserve Bank of India (RBI) on Tuesday
Real-estate-urges-for-relief-in-upcoming-budget
Feb 02, 2015
NOIDA: The real estate, which reeling under slump has sought relief from the finance and urban development ministry in the upcoming budget
Competition-Commission-of-India-rejects-complaint-against-DLF-Universal
Feb 01, 2015
NEW DELHI: The Competition Commission of India has rejected allegations that realty major DLF indulged in unfair business practices with regard to a commercial project

Latest Realty News Of State

Realty Talk's