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The SWAMIH Fund, or Special Window for Completion of Construction of Affordable and Mid-Income Housing Projects Fund, will invest in 252 projects with sanctioned funds to the tune of ₹24,151 crore. It will benefit 1,47,378 home buyers.
The Union Cabinet had, in November 2019, cleared a proposal to set up a ‘Special Window’ in the form of alternative investment fund (AIF) to provide priority debt financing for the completion of stalled housing projects. The SBICAP Ventures would be the Investment Manager to the first AIF set up under this special window.
SWAMIH Investment Fund was formed to complete construction of stalled, brownfield, RERA registered residential developments that are in the affordable housing/mid-income category, are net-worth positive and require last mile funding to complete construction. It has a target corpus of ₹12,500 crore with a green-shoe option of ₹12,500 crore.
Project approvals
According to a government statement, around 111 projects have been granted final approval. Investments (deal size) will be ₹10,992 crore against which the project cost is ₹30,503 crore. Beneficiaries or total units under the investment were 63,716.
On the other hand, preliminary approval has already been granted for 142 projects, entailing an investment of ₹13,159 crore where the project cost was ₹36,267 crore and number of dwelling units coming up stood at 83,662.
On Monday, Ashwini Kumar Tewari, Managing Director SBI, Intl Banking, Tech & Subsidiaries, and Suresh Kozhikote, MD, SBICAP Ventures, handed over the keys to home-buyers of Panchsheel Greens 2 located at Greater Noida in Uttar Pradesh. The project was completed within eight months of it receiving SWAMIH funds.
Although phase 2 of the project was launched in 2012 with 760 units being spread across four towers and villas; it was stressed due to paucity of cash flows.
Funding commitment by the GoI has resulted in its revival, thereby providing relief to over 750 plus homebuyers and provided direct employment to more than 600 labourers, the government statement said.
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