homereal estate NewsRs 25,000 crore AIF for real estate will restore consumer confidence, says DLF’s Ashok Tyagi
Rs 25,000 crore AIF for real estate will restore consumer confidence, says DLF’s Ashok Tyagi
The Rs 25,000 crore alternate investment fund announced by the government for the real estate sector to help complete the stalled housing projects would restore consumer confidence in the industry, said Ashok Tyagi, whole-time director of DLF, a real estate developer.
Morgan Stanley has upgraded DLF to 'overweight' from 'equal-weight', keeping it in its top picks from the sector.
“From quantum Rs 25,000 crore is a sizeable amount of money. They (government) have now appointed SBI as the fund manager which is a great step and they have also relaxed some of the conditionality which was there in the earlier announcement of the FM with respect to NCLT cases etc.,” said Tyagi in an interview with CNBC-TV18.
“Hopefully, if this fund is run judiciously, it should definitely go ahead with at least solving part of the projects for sure. Obviously, it can be counter-argued that Rs 25,000 is not adequate but Rs 25,000 is still a substantial sum and a percentage of those projects gets the last mile funding, it will go a long way in restoring the consumer confidence,” added Tyagi.
Tyagi, however, said that he was not sure if the fund for realty will have much impact this financial year.
On inventory, he said that in the National Capital Region (NCR), many apartments were sold in a semi-finished state. Inventory of ready-to-move-in stock is very manageable, he added.
About cash flow, Tyagi said, “In the last 6 months odd our operating cash flow, which used to run consistently deficit, is now running somewhere between Rs 150 crore and Rs 175 crore plus on a quarterly basis.”
First Published: Nov 27, 2019 11:43 AM IST
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