Finance Minister Nirmala Sitharaman on Saturday, February 1, announced a new ₹15,000 crore ‘SWAMIH Fund’ to complete 1 lakh stalled housing units, providing relief to stuck homebuyers.In November 2019, the government launched the ‘Special Window for Affordable and Mid-Income Housing’ (SWAMIH) to complete stalled projects across India. Managed by SBICAP Ventures Ltd, part of the State Bank Group, the fund has been successful.Sitharaman, in her budget speech, announced SWAMIH Fund-2 after the success of the first fund. SWAMIH Fund-1 has already completed 50,000 units, and another 40,000 units will be completed in 2025. This helps middle-class families who are paying EMIs and rent.
SWAMIH Fund-2 will be a blended finance facility with contributions from the government, banks, and private investors. The ₹15,000 crore fund aims to complete another 1 lakh units quickly.Under SWAMIH Fund-1, ₹15,530 crore has been raised to provide priority debt financing for the completion of stressed, brownfield, and RERA-registered residential projects in the affordable and mid-income housing category.The fund supports first-time developers, developers with troubled projects, those with a poor track record, customer complaints, NPA accounts, and even projects with litigation issues. It is considered the lender of last resort for distressed projects.A study by PropEquity, commissioned by SBI Ventures Ltd in 2019, estimated that around 1,500 projects with 4.58 lakh housing units were stalled and needed ₹55,000 crore to complete.
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