SWAMIH Fund
SWAMIH is Special Window for Funding Stalled Affordable and Middle-Income Housing Projects. The main objective of the scheme is to provide debt financing to the stalled housing projects. These housing projects are those that fall under the middle-income and affordable housing categories.
About SWAMIH Fund
It is a Category II AIF debt fund that was set up with the support of Government of India. AIF is Alternate Investment Fund. It was launched in 2019 and is registered with SEBI (Securities and Exchange Board of India). It was launched to complete the construction of RERA registered mid-income category and affordable housing projects. The RERA is Real Estate (Regulation and Development) Act. SBICAP Ventures is the investment manager of SWAMIH Fund. It is wholly owned subsidiary of SBI. The Department of Economic Affairs operating under the Ministry of Finance is the sponsor of the fund.
SWAMIH Fund: Category II of AIF
AIF is a privately pooled investment vehicle that collects funds from sophisticated investors. The SEBI is the regulator of AIF. AIF collects investment only from specific investors. The investors are previously defined. There are three categories in AIF. They are Category I, Category II and Category III. The category I includes funds that are invested in businesses with potential to grow. They are small and medium enterprises and startups. The ventures that have positive impact on the growth of the economy fall under this category. They have high job creation potential. Some of the Category I AIF are angel funds, infrastructure funds, social venture funds and venture capital funds. The Category II funds are those funds that are invested in debt securities and equity securities. The Government of India does not provide concession for the funds invested under this category. Some of the Category II funds are debt funds, real estate funds and private equity funds. The Category III funds are those funds that provide returns. They use diverse trading strategies to bring returns. No incentive or concession is provided to these funds. The Category III AIF are private investment in public equity funds and hedge funds.
Current Status
According to the Ministry of Finance, SWAMIH has given approval to 95 projects (as of October 2021). It has sanctioned more than Rs 9,500 crores. With this, around 57,700 homes are expected to be completed.
Rivali park
The Rivali park residential project was the first project to receive the SWAMIH fund. In October 2021, SWAMIH fund achieved its twin target of completing the project and redeeming the investment successfully. The project was completed amidst COVID-19 lockdown.
