In view of the tremors caused by the global financial crisis, the government may not accept commerce & industry ministrys proposal to lower banks risk weightage for extending loans to special economic zones (SEZs) and units being set up in SEZs.
The empowered group of ministers (EGoM) on SEZs is considering the ministrys proposal to amend the Reserve Bank of Indias (RBI) circular classifying SEZs as commercial real estate. The circular is a major obstacle for SEZ developers in getting loans at cheaper rates.
A finance ministry source has said the provisions made by the apex bank are rational and it is required more due to the global situation. RBI has asked banks to assign proper risk while extending loans to SEZs and units in SEZs.
More : economictimes.indiatimes.com
Send an E-Mail for India Property Enquiry!
Related News from India Properties
SEZs For The Rich, Poor To Bear The Brunt
Special Economic Zone (SEZ) policy has taken one more turn with the announcement from the Empowered Group of Ministers (eGOM). The freeze on them is being lifted but several parameters will be changed to accommodate the farmers, tribals and the civil society groups who have been agitating against the SEZs. From the earlier no limit on the maximum size of the multi-product SEZs now the limit has been set at 5,000 hectares. The state governments are prohibited from acquiring land for the private players and they cannot form a joint venture with a private player unless the latter has the
Double-digit home loan rates are back
The year 2006 pulled interest rates on housing loans back to double digits, after low single digit rates for since 2003. The banking sectors weighted average lending rate on home loans is set to touch 11 per cent in early 2007, a level last seen four years ago. Banks raised their benchmark prime lending rates (BPLRs) by 150-200 basis points in three-four rounds in 2006, thats expected to take the weighted average lending rate of banks on home loans past March 2004 level of 10.66 per cent. Interest rates on home loans have shot up to double
Get ready to pay another 0.5% for your dream home
Home loan rates are likely to go up once again by 25-50 basis points. Borrowers face the prospect of paying Rs 150-300 more on a Rs 10 lakh loan. We will review our lending rates next week, said V Vaidyanathan, executive director, ICICI Bank. The second largest bank in the country is likely to witness an increase in the cost of deposits, following an increase in cash reserve requirement (CRR) by RBI. We will review our rates after Christmas. In any case, the impact of the CRR hike will be felt only next month, said Deepak Parekh, chairman, HDFC. HDFC
The Land challenge
Tata Motors runs into trouble in Singur, West Bengal over land pattas. • Posco, the Swedish steel major, faces farmer agitation and trouble in acquiring land for its steel plant. • Airport authority of India meets trouble when trying to acquire land for airstrip in dense Mumbai and Delhi areas delaying the construction of airports. • National Highway Authority of India (NHAI)s National Highway Development Plan (NHDP) runs into trouble with delays in acquiring land for construction. Pushes up end costs. • Reliance SEZ in Jamnagar has farmers suing it for misuse of land. • Governments acquisition of land for
Old loans for new projects?
The RBI has by its word and rules dissuaded banks from loaning for real estate projects. But the developers are taking advantage of poor surveillance by banks to recycle old loans for new real estate projects reports CNBC-TV18. The RBI has repeatedly warned banks to be strict with their real estate loans, but developers seem to be finding new ways to access banks loans. Although new loans have gotten scarce, developers have devised a new mechanism to keep the old funds rolling for new projects. This is how it works: A developer borrows money from a bank for 18 to