New Delhi: JD(U) general secretary and former MP KC Tyagi on Sunday (September 15) lauded the Centre for announcing Rs 20,000 crore special window for last-mile funding for incomplete affordable housing projects when the economy is grappling with a slowdown.

He also suggested that the Centre must first focus on boosting the purchasing power of the people to combat the economic slowdown. 

Speaking to reporters in New Delhi, Tyagi said, "The slumping of the global economy has also impacted India. At present, the major challenge is to create jobs in the market when there is an economic slowdown. But I am happy that the Central Government has taken this move of giving Rs 20,000 crore fund during this time. I am sure that this time also we will be able to fight economic slowdown as we did it in 2008."

"Mega shopping festivals will only be successful if the purchasing power of consumers will be increased. They must work towards boosting the purchasing power," he added.

Union finance minister Nirmala Sitharaman on Saturday announced a special window to provide last mile funding for such projects with a fund of Rs 20,000 crore. The announcements come at a time when the amid India's economic slowdown. In the recent quarter, GDP growth slowed to a six-year low of 5 %.

The major sectors that have borne the brunt due to the economic slowdown are the automobile sector and the real estate sector.

"A special window to provide last mile funding for housing projects, which are non-NPA and non-NCLT and are net worth positive in affordable and middle-class housing to be set up," the finance minister had stated.