Union finance ministry plans to provide financial assistance for economically viable semi-constructed residential projects in urban areas through state-run banks.

In this regard, the ministry asked public sector banks to compile a list of all semi-constructed residential projects in metros that can be made viable by extending loans.

The banks are asked to submit the details and their remarks on such projects to the National Housing Board along with their funding plan. This will be reviewed in the meetings of state-level bankers committee for further lending, among other financing options.

Earlier, banks received a letter from the NHB asking them to take suitable steps for reviving such projects, which may be stalled for reasons beyond the control of developers.

The move is intended to boost construction and availability of affordable houses. The finance ministry also plans to ask banks to replace the lenders from the informal sector that charge much higher rates for viable projects.

Targeted lending to stressed but viable projects will bring down the cost of housing projects and also provide a boost to the economy, the government officials believe.