The SWAMIH Investment Fund I, sponsored by the Ministry of Finance, Government of India, and managed by SBICAP Ventures Ltd., is a groundbreaking initiative aimed at completing stressed and stalled residential projects. It is the country’s largest social impact fund specifically designed for this purpose.
Objectives of SWAMIH Investment Fund
The fund’s primary objective is to raise funds and provide priority debt financing for the completion of stressed, brownfield, and Real Estate Regulatory Authority (RERA) registered residential projects. It focuses on projects falling within the affordable and mid-income housing category, addressing the housing needs of a wide range of homebuyers.
Eligibility Criteria and Impact – Lender of Last Resort for Distressed Projects
SWAMIH considers a diverse range of projects and developers, including first-time developers, established developers facing project difficulties, those with a poor track record of stalled projects, customer complaints, NPA accounts, and projects with litigation issues. It acts as a lender of last resort for distressed projects, ensuring that even challenging projects have a chance to be completed successfully.
Robust Supervision and Control – Ensuring Faster Project Completions
One of the key strengths of SWAMIH is its robust supervision and control over project expenditures. This approach enables faster project completions and acts as a catalyst for better collections and sales. The Fund’s involvement often leads to improved outcomes, even in projects that have faced significant delays.
Achievements – Completed Homes and Future Goals
Since its inception in 2019, SWAMIH has provided final approval to approximately 130 projects, with sanctions worth over Rs 12,000 crore. In just three years, it has completed the construction of 20,557 homes and aims to complete over 81,000 homes in the next three years. Its impact extends across 30 tier 1 and 2 cities, revitalizing the real estate sector in these areas.
Unlocking Liquidity and Supporting Ancillary Industries
Apart from completing residential projects, the Fund has played a crucial role in unlocking liquidity in the real estate and infrastructure sectors. It has successfully facilitated liquidity of more than Rs. 35,000 crore, contributing to the growth of many ancillary industries in these sectors.
Conclusion – Driving Positive Change in Real Estate
The SWAMIH Investment Fund has emerged as a powerful catalyst in reviving stalled real estate projects and addressing the housing needs of affordable and mid-income homebuyers. Through its robust financing and supervision mechanisms, it has already achieved significant milestones and is poised to drive further positive change in the real estate sector.
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