Context: The Special Window for Affordable and Mid-Income Housing (SWAMIH) Investment Fund I has raised Rs 15,530 crore so far to provide priority debt financing for the completion of stressed, brownfield and Real Estate Regulatory Authority (RERA)-registered residential projects that fall in the affordable, mid-income housing category.

Key Performance so far

• It has so far provided final approval to about 130 projects with sanctions worth over Rs 12,000 crore.

• The Fund has completed 20,557 homes and aims to complete over 81,000 homes in the next three years across 30 tier 1 and 2 cities.

• The Fund has been able to complete construction in 26 projects and generate returns for its investors.

• It has also played a critical role in the growth of many ancillary industries in real estate and infrastructure sector having successfully unlocked liquidity of more than Rs. 35,000 crore.

About SWAMIH Fund

• The Special Window for Affordable and Mid-Income Housing (SWAMIH) Investment Fund is a social impact fund specifically formed for completing stressed and stalled residential projects.

• The Fund is sponsored by the Ministry of Finance, Government of India, and is managed by SBICAP Ventures Ltd., a State Bank Group company.

• 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, and even projects where there are litigation issues

• It is considered the lender of last resort for distressed projects.

Eligibility Criteria

• The real estate projects must be Real Estate (Regulation and Development) Act (RERA)-registered which have been stalled due to a lack of adequate funds.

• Each of these projects must be very close to completion.

• They must also fall under the ‘Affordable and Middle-Income Project’ category (any housing projects wherein housing units do not exceed 200 sq.m.).

• Net-worth positive projects are also eligible for SWAMIH funding.

• Net-worth positive projects are those projects for which the value of their receivables (debts owed to them by buyers), plus the value of their unsold inventories is greater than their completion costs and outstanding liabilities

Objective

• It aims to provide financing to enable completion of stalled housing projects and ensure delivery of apartments to homebuyers.

• To unlock liquidity in the real estate sector and provide a boost to core industries such as cement and steel.