Low cost housing projects are the need of the hour but are feebly produced. Hence RBI has now permitted the developers and housing finance companies to raise the fund of one billion dollar in 2012-13 under the low cost affordable housing scheme to multiply the number of particular housing units. The amount raised will be audited every year by the regulatory authority.However every developer is not allowed to participate. Only those with minimum five years of experience in residential projects and have stood true and perfect in all financial commitments to banks will be eligible to raise funds overseas. Also the project for which the fund is being raised must be free from any legal disputes.”The layout should conform to the land use stipulated by the town and country planning department for housing projects. All necessary clearances from various bodies including revenue department with respect to land usage/environment clearance, etc are available on record,” said RBI.But the eligibility doesn’t stop here. The developers must be registered with National Housing bank and have a minimum capital of Rs 50 crore.
The idea seems to help those who are in need of affordable and low cost houses.