Industry body Naredco (National Real Estate Development Council) has asked the finance ministry asking it to launch real estate-specific fund SWAMIH-2 with a wider scope.
Highlighting the role the SWAMIH fund played during the Covid period, Naredco has sought provisioning of at least Rs 25,000 crore for the SWAMIH-2 fund in upcoming financial year (FY24).
The SWAMIH Investment Fund was formed to complete construction of stalled, existing, RERA-registered residential developments that are in the affordable housing or mid-income category and are net-worth positive and require last-mile funding to complete construction.
In a letter submitted to the ministry ahead of the Union Budget 2023-24, the developers’ body said India’s second-largest employment generating sector expects consistent government support to continue its robust performance.
In its letter to finance minister Nirmala Sitharaman, NAREDCO also sought the extension of the scheme to new projects. Emphasising on the need to widen the ambit of the scheme, it has also recommended including stress-free projects and commercial projects to the list of beneficiaries.
“The SWAMIH Fund was one of the most innovative and effective tools which helped solve the problem of last mile funding of stalled housing projects to a great extent, bringing relief to several distressed home buyers. Extending the duration and expanding the scope of this fund would do wonders. Allocation of at least Rs 25,000 crore for next fiscal alone shall boost the economy, create more jobs and attract huge investments,” Naredco president Rajan Bandelkar said.
The industry body has also recommended that the fund should support complete project funding without factoring the sales inflows. It also suggested that under the special purpose fund, funding should be provided to all projects, irrespective of their risk rating.
“Relaxing the eligibility criteria with strict monitoring would lead to massive growth in the sector and the economy as a whole along with ensuring compliance and benefits to the genuine beneficiaries. As the fund in its first phase supported stalled housing projects, it should also be extended to the commercial space as it would have multilateral effects ranging from boost in realty to retail sectors,” said Naredco finance committee chairman Sathish Kumar M.
An alumna of the Indian Institute of Mass Communication, Dhenkanal, Sunita Mishra brings over 16 years of expertise to the fields of legal matters, financial insights, and property market trends. Recognised for her ability to elucidate complex topics, her articles serve as a go-to resource for home buyers navigating intricate subjects. Through her extensive career, she has been associated with esteemed organisations like the Financial Express, Hindustan Times, Network18, All India Radio, and Business Standard.
In addition to her professional accomplishments, Sunita holds an MA degree in Sanskrit, with a specialisation in Indian Philosophy, from Delhi University. Outside of her work schedule, she likes to unwind by practising Yoga, and pursues her passion for travel.
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