The government has released an amount of Rs 2,646.57 crore to the SWAMIH Fund as on March 17, 2023, Union minister of state for finance Pankaj Chaudhary told the Lok Sabha in a written reply on March 27, 2023. The SWAMIH fund had delivered over 22,500 homes, he added.
Under the Special Window for Affordable and Mid-Income Housing (SWAMIH) programme, 310 proposals aggregating to Rs 31,145 crore have been approved as on March 17, 2023. This will benefit around 1,91,367 homebuyers and unlock projects worth Rs 83,188 crore, he further added.
On March 4, 2023, the finance ministry had said that the Special Window for Affordable and Mid-Income Housing (SWAMIH) Investment Fund had raised Rs 15,530 crore so far.
The fund has so far provided final approval to about 130 projects with sanctions worth over Rs 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, it added. The fund has successfully unlocked liquidity of more than Rs 35,000 crore, it further added.
SWAMIH is India’s largest social impact fund specifically formed for completing stressed and stalled residential projects. The fund aims to provide priority debt financing for the completion of stressed, existing and Real Estate Regulatory Authority (RERA)-registered residential projects that fall in the affordable, mid-income housing category.
The fund is sponsored by the finance ministry and is managed by SBICAP Ventures, a State Bank Group company. The fund has no precedent or comparable peer fund in India or in the global markets.
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, even projects where there are litigation issues, it is considered as the lender of last resort for distressed projects.
“Robust supervision and control over project expenditures are the mainstay 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…Given the robust controls and despite the track record of the projects and promoters, the Fund has been able to complete construction in 26 projects and generate returns for its investors,” the ministry said.
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