SWAMIH Fund- Recent development
The SWAMIH Fund is all set to deliver its first finished apartments in the year 2021. It is a 250-billion-rupee fund set up by Indian government. This fund was created to complete the stalled housing projects. The fund offers a solution of the problem that hindered savings of home buyers and bankrupted developers.
- The fund will hand over 16 projects comprising of more than 4,000 homes in the financial year 2021-2022.
- The SWAMIH fund was announced in November 2019.
- SWAMIH stands for ‘Special Window for Completion of Construction of Affordable and Mid-Income Housing Projects’.
Why this fund was launched?
In the year 2019, India had an estimated $63 billion of stalled projects. The stalled projects were the result of the economic slowdown and a credit crisis in the real estate sector. Many of the builders were unable to service their loans. They were forcing banks to write off debts. Thus, this fund was created as one measure to deal with the credit crisis.
SWAMIH Investment Fund
This fund was created to complete the construction of stalled, RERA-registered affordable and mid-income category housing projects. It credits the money in the projects which are stuck because of lack of funds. It was created as Category-II Alternative Investment Fund debt fund which is registered with SEBI.
Money Approved through the fund
This fund has approved around 159 projects with the investment of 145 billion rupees. This investment will help in completing 100,000 homes. Out of these projects, 47 projects have been given final approval.
Investors under the fund
This fund has a total of 14 investors. The government has 50% share in the fund. The Life Insurance Corp. and State Bank of India are having the share of 10%. Rest of the shares are met by other public and private-sector players.
Category: Economy & Banking Current Affairs