Centre’s SWAMIH Fund completes 20,557 homes since its inception in 2019, unlock ₹35,000 cr liquidity
1 min read . Updated: 04 Mar 2023, 03:15 PM IST
PremiumThe fund aims to provide priority debt financing for the completion of stressed, brownfield, and RERA-registered residential projects in the affordable and mid-income housing category
NEW DELHI: The Special Window for Affordable and Mid-Income Housing (SWAMIH) Investment Fund has completed over 20,000 homes since its inception in 2019.
The SWAMIH Fund is a social impact fund, sponsored by the Union Ministry of Finance, that aims to provide priority debt financing for the completion of stressed, brownfield, and Real Estate Regulatory Authority (RERA)-registered residential projects in the affordable and mid-income housing category.
The fund is sponsored by the Ministry of Finance and is managed by SBICAP Ventures Ltd., a State Bank Group company. The fund has no precedent or comparable peer fund in India or in the global markets. It has raised ₹15,530 crore so far.
“SWAMIH has so far provided final approval to about 130 projects with sanctions worth over ₹12,000 crore. In three years since inception in 2019, the fund has already completed 20,557 homes and aims to complete over 81,000 homes in the next three years across 30 tier 1 and 2 cities," the Finance Ministry said in a statement on Saturday.
Since the fund considers first-time developers, established developers with troubled projects, developers with a poor track record of stalled projects, customer complaints and NPA accounts, and even projects where there are litigation issues, it is considered as the lender of last resort for distressed projects, the ministry said.
According to the ministry, robust supervision and control over project expenditures are the mainstays of SWAMIH’s investment process, enabling faster project completions.
The fund’s presence in a project often acts as a catalyst for better collections and sales even in projects that were delayed for years, it said.
The fund has completed construction in 26 projects while unlocking liquidity of more than ₹35,000 crore.