In a significant move to address long-pending distress in the housing sector, the government is considering the creation of a dedicated fund to revive stalled projects from the pre-RERA period, aiming to facilitate a mutually beneficial resolution for both promoters and homebuyers.

Housing Minister Manohar Lal Khattar said the Ministry of Housing & Urban Affairs will encourage a proposal to set up charitable institutions to fund housing, particularly in the affordable segment, since banks and other such entities do not come forward to fund housing units in the affordable sector.

Addressing the Second Day of NAREDCO Conclave 2026 in New Delhi on Saturday, Khattar also indicated that a committed fund could be set up to finance the stalled housing projects in the pre-RERA period as per wider and broader suggestions of the industry so that both their promoters and buyers are able to reach for a win-win settlement.

The minister also indicated that close to 700 – 750 slum settlements in and around NCT would be developed by the government for which policy framework is being deliberated upon various stakeholders within the various authorities of the government at a very high level. With the take-off this proposal affordable housing would attain a required fillip in and around the NCT.

Elaborating on the issue of establishing Charitable Institutions to fund affordable housing in the LIG and EWS segments, Khattar pointed out that money could be organized through CSR contributions in such proposed charitable institutions to generate funds for poorer sections of the society since banking and financial institutions barely are proactive to support this section.

NAREDCO suggested that the size of the SWAMIH fund can be increased to support the stalled housing projects.

Khattar also said that a fund could be set up to support housing projects approved prior to RERA, with the size of the fund to be decided after discussion. In this context, it was suggested that the government may consider establishing a dedicated fund to arrange financing for reviving stalled housing projects.

On the issue of cheaper land for affordable housing, Khattar suggested that cheaper land could not be made available for this section of housing. What could be done to encourage availability of land for such projects is through cross subsidization provided a consensus emerges on the issue.

Earlier speaking on the occasion, Kuldip Narayan, Joint Secretary, Ministry of Housing & Urban Affairs, Government of India, said that housing projects can come up at the centre of major cities in which land parcels on which empty buildings are raised and are of no use for decades.

Such a land could be identified through Google maps and brought to use for the stated purpose, said the Joint Secretary adding that on rental housing, the government is working on as soon as a detailed feasibility done on this, a thinking will emerge on the issue.

Speaking on the occasion, Dr. Niranjan Hiranandani, Chairman, NAREDCO, said that a great deal of efforts have been made by the government to ensure housing attains a priority in Indian economy but lot more needs to be done so that the contribution of housing sector increases to 15% by 2047.

He also advised that policy decisions should be affected sooner than anticipated to ensure that rental housing projects are encouraged in India on the lines of economies of scale as this would suit to those who cannot afford to buy their own house.

NAREDCO President Parveen Jain and Khattar released a KPMG & NAREDCO made Knowledge Report on the occasion in which a detailed road map has been laid out for the real estate sector for “Viksit Bharat”.