A new construction loan will soon be available to you, but the money will be spent on you, instead of a construction company, says a government agency.
According to the Economic Times, the new loan scheme is being rolled out to “developers and industrialists”.
The money will go to “all the firms that have a significant number of construction projects in the country”.
The loan scheme will be in place from January 31, and will not be available for existing loans.
“The scheme will help companies to finance the construction of new houses and businesses as well as to construct the necessary infrastructure for development,” the Times quoted officials as saying.
They added that the government was keen to encourage the construction sector to invest in infrastructure.
However, the article did not explain how the government could finance this new loan.
The article went on to say that the new funding would be for construction firms, and that the scheme will cover “all construction projects that are required for construction”.
The Times said the scheme was being rolled-out to “developmental sectors”.
The government was quick to deny this.
A spokesperson for the Ministry of Finance told the Indian Express, “We are not making any announcements about the scheme, nor are we discussing it with anyone.
All announcements are made by the ministries and departments concerned.”
It is not clear whether the government intends to expand the scheme.
This is the second such scheme introduced by the Modi government in a row, which came into effect on October 5.
The first was a scheme that allowed the government to subsidise construction projects for the poor, but only if they were completed within a reasonable time.
The government’s second move came in September, when it announced the new National Housing Scheme, which offered loans to developers and investors for the construction and rehabilitation of housing projects.
In October, the government announced a programme that offered loans for the purchase of residential properties.
In December, the finance ministry also announced a scheme to subsidize the purchase and rehabilitation (or re-sale) of commercial properties.
A recent study, published by the National Institute of Statistics and Programme Implementation, said that the number of properties sold by developers in 2016 stood at 1,049,000, while in 2019 it stood at 9,904,000.
“There are almost 40 lakh properties, of which almost 70 per cent were sold during the financial year 2016-17, with the remaining 25 per cent sold in the year 2017-18,” the study stated.
The report said that more than 30 per cent of the properties sold in 2017-19 were sold to individuals.