News Highlights:
- SWAMIH investment fund, a ‘Special Window for Completion of Affordable and Mid-Income Housing’ has completed 20,557 homes since its inception in 2019.
- Fund targets to complete over 81,000 homes in the next 3 years across 30 Tier 1 and 2 cities.
SWAMIH Fund:
- About:
- In 2019, the central government launched the ‘Special Window for Funding Stalled Affordable and Middle-Income Housing Projects’ or ‘SWAMIH’ Scheme.
- SWAMIH Investment Fund is a government-backed fund that was set up as a Category-II AIF (Alternate Investment Fund) debt fund registered with the Securities And Exchange Board of India – SEBI.
- SWAMIH is India’s largest social impact fund specifically formed for completing stressed and stalled residential projects.
- The Fund is sponsored by the Ministry of Finance and is managed by SBICAP Ventures Ltd. (a State Bank Group company).
- Eligibility Criteria:
- The real estate projects seeking last-mile funding from SWAMIH must be RERA( Real Estate (Regulation and Development) Act) -registered projects which have been stalled due to a lack of adequate funds.
- They must also fall under the ‘Affordable and Middle-Income Project’ category.
- Net-worth-positive projects are also eligible for SWAMIH funding.
- Finally, each of these projects must be very close to completion.
- Net-worth positive projects are those projects for which the value of their receivables (debts owed to them by buyers), plus the value of their unsold inventories, is greater than their completion costs and outstanding liabilities.
- Objective:
- The aim of SWAMIH Funds is to provide funding to stalled projects that are net-worth positive, including those projects that have been declared as Non-Performing Assets (NPAs) or are pending proceedings before the National Company Law Tribunal – NCLT under the Insolvency and Bankruptcy Code – IBC.
- SWAMIH investment fund will provide last-mile funding to the stressed affordable and middle-income housing projects in the country.
- Benefits associated with SWAMIH:
- A large amount of capital locked up in these projects will be released once these homes are constructed and completed.
- It will provide employment to construction workers and will provide impetus to allied industries such as steel and cement.
- It will significantly improve the economic sentiment in the nation and will also improve the portfolios of Banks and NBFCs.
Completed projects:
- It has so far provided final approval to about 130 projects with sanctions worth over Rs 12,000 crore.
- The Fund has 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 Fund has been able to complete construction in 26 projects and generate returns for its investors.
- It has also played a critical role in the growth of many ancillary industries in the real estate and infrastructure sector, having successfully unlocked liquidity of more than Rs. 35,000 crores.
Pic Courtesy: Freepik
Content Source: PIB