Union Housing Minister Proposes Dedicated Fund to Revive Pre-RERA Stalled Projects

Union Housing and Urban Affairs Minister Manohar Lal Khattar indicated on February 14 that a dedicated fund could be established to revive stuck housing projects approved in the pre-RERA era. This proposal aligns with industry suggestions to achieve a win-win resolution for both developers and homebuyers.

Speaking on the second day of the NAREDCO Conclave 2026, the minister outlined a multi-pronged strategy focused on reviving stuck projects, fast-tracking affordable housing, and unlocking underutilized urban land parcels.

“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 also highlighted the need to organize funds through Corporate Social Responsibility (CSR) contributions in proposed charitable institutions to support the poorer sections of society. 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 acknowledged that the size and structure of such a fund could be debated but emphasized the critical importance of timely financing to restart incomplete developments.

On urban redevelopment, Khattar stated that the government plans to develop nearly 700–750 slum settlements in and around the National Capital Territory (NCT). 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 boost in and around the NCT,” he said.

Addressing concerns about land availability, the minister suggested that cross-subsidization could encourage land availability, provided a broad consensus among stakeholders emerges.

NAREDCO chairman Dr. Niranjan Hiranandani commended the government's efforts to prioritize housing in the Indian economy but stressed the need for more action. “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.

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 emphasized the need for Housing for All and stressed the importance of promoting affordable housing and easy access to finance for both builders and homebuyers. Jain suggested that the government should incentivize rental housing.