RJPPL's focus aligns with the Pradhan Mantri Awas Yojana (PMAY-U) 2.0 initiative, which aims to provide affordable housing to urban poor and middle-class families. Despite this ambitious expansion, Reliance Infrastructure's stock has faced a downturn, indicating a cautious response from investors.
The new subsidiary has an authorized and paid-up share capital of ₹1,00,000, divided into 10,000 equity shares at ₹10 each.
RJPPL aims to engage in acquiring, selling, leasing, and developing various properties.
This move is seen as part of Reliance Infrastructure's strategy to diversify its business portfolio and capitalize on the growing real estate market in India. Despite this ambitious expansion, Reliance Infrastructure's stock has faced a downturn, indicating a cautious response from investors. To recall, in June Anil Ambani's Reliance Infrastructure incorporated Reliance EV Private Limited (REVPL), through its subsidiary Reliance Velocity Limited (RVL), to enter Electric Vehicles business.
The Pradhan Mantri Awas Yojana-Urban 2.0 (PMAY-U 2.0) is an ambitious initiative by the Indian government aimed at providing affordable housing to urban poor and middle-class families. The scheme aims to benefit 1 crore families over the next five years.
Notably, an investment of ₹10 lakh crore (approximately US $120 billion) has been allocated for PMAY-U 2.0 initiative, with a government subsidy of ₹2.30 lakh crore or US $27. 6 billion.
The Indian real estate sector is expected to reach a market size of USD 1 trillion by 2030, up from USD 200 billion in 2021. By 2047, the market is projected to expand to USD 5.8 trillion, contributing 15.5% to India’s GDP.
In FY23, the residential property market saw home sales reaching an all-time high of ₹3.47 lakh crore (USD 42 billion), marking a 48% year-on-year increase. The demand for residential properties surged in the top 8 cities, driven by mid-income, premium, and luxury segments.
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