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.
Relevance:
GS III: Indian Economy
Dimensions of the Article:
- What is the SWAMIH investment fund?
- What is Alternate Investment Fund?
- How many projects so far have been financed by the Fund?
What is the SWAMIH investment fund?
- The SWAMIH Investment Fund I is a social impact fund that aims to complete stalled and distressed residential projects in India.
Sponsor and Management:
- The Fund is sponsored by the Ministry of Finance, Government of India, and is managed by SBICAP Ventures Ltd., a State Bank Group company.
- It is a Category-II AIF (Alternate Investment Fund) debt fund registered with SEBI.
Lender of Last Resort:
- The Fund is considered as the lender of last resort for distressed projects.
- It 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.
Catalyst for Better Collections and Sales:
- The Fund’s presence in a project often acts as a catalyst for better collections and sales, primarily in projects that were delayed for years.
- It is one of the largest domestic real estate private equity teams in India focused only on funding and monitoring the completion of stressed housing projects, according to the Finance Ministry.
What is Alternate Investment Fund?
- Alternative Investment Fund or AIF means any fund established or incorporated in India which is a privately pooled investment vehicle which collects funds from sophisticated investors, whether Indian or foreign, for investing it in accordance with a defined investment policy for the benefit of its investors.
How many projects so far have been financed by the Fund?
- SWAMIH has provided final approval to about 130 projects.
- The total sanctions worth of these projects is over Rs 12,000 crore.
- The Fund has completed 20,557 homes so far.
- SWAMIH 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.
- One of the biggest projects that SWAMIH finished successfully was the Rivali Park residential project in Mumbai, which was developed by CCI Projects Pvt Ltd.
- SWAMIH was launched in November 2019 and has raised Rs 15,530 crore so far.
-Source: Indian Express
