Everything You Need to Know About the SWAMIH Fund
by…RERA Licensed Real Estate Agent in Hyderabad
What is the SWAMIH fund?
In November, 2019, the central government launched the ‘Special Window for Funding Stalled Affordable and Middle-Income Housing Projects’ or ‘SWAMIH’ Scheme. The objective of the scheme is to provide priority debt financing for the completion of stalled housing projects falling under the affordable and middle-income housing categories. This ‘last mile financing’ of stalled projects will be extended through a Category-II AIF (Alternate Investment Fund) debt fund registered with the Securities and Exchange Board of India (SEBI).
What is that all about?
- Due to the Funds crunch, many real estate projects across the country were stalled. The Government of India to help complete over 1,500 stalled housing projects comprising 4.58 lakh housing units, announced a Rs 25,000 crore fund, in November 2019.
- Investment Fund is a government backed fund that was set up as a Category-II AIF (Alternate Investment Fund) debt fund registered with Securities And Exchange Board Of India – SEBI.
- The fund was formed to complete construction of stalled, RERA – registered affordable and mid-income category housing projects which are stuck due to paucity of funds.
- The Sponsor of the Fund is the Secretary, Department of Economic Affairs, Ministry of Finance, on behalf of the Government of India.
- The Investment Manager of the Fund is SBICAP Ventures, a wholly-owned subsidiary of SBI Capital Markets, which in turn is a wholly-owned subsidiary of the State Bank of India.
Who will be the investor of the SWAMIH Investment Fund?
- With the government holding 50% of the fund.
- Life Insurance Corp. and State Bank of India each having 10%.
- The rest with public and private-sector players which will include cash-rich financial institutions, public and private banks, sovereign wealth funds, domestic pension and provident funds, global pension funds and other institutional investors.
