In November 2019, the government launched the ‘Special Window for Affordable and Mid-Income Housing’ (SWAMIH) to complete stalled projects across India. Managed by SBICAP Ventures Ltd, part of the State Bank Group, the fund has been successful.
Sitharaman, in her budget speech, announced SWAMIH Fund-2 after the success of the first fund. SWAMIH Fund-1 has already completed 50,000 units, and another 40,000 units will be completed in 2025. This helps middle-class families who are paying EMIs and rent.
SWAMIH Fund-2 will be a blended finance facility with contributions from the government, banks, and private investors. The ₹15,000 crore fund aims to complete another 1 lakh units quickly.
Under SWAMIH Fund-1, ₹15,530 crore has been raised to provide priority debt financing for the completion of stressed, brownfield, and RERA-registered residential projects in the affordable and mid-income housing category.
The fund supports first-time developers, developers with troubled projects, those with a poor track record, customer complaints, NPA accounts, and even projects with litigation issues. It is considered the lender of last resort for distressed projects.
A study by PropEquity, commissioned by SBI Ventures Ltd in 2019, estimated that around 1,500 projects with 4.58 lakh housing units were stalled and needed ₹55,000 crore to complete.
Industry and expert reactions
Arvind Nandan, Managing Director, Research & Consulting, Savills India, said, “The expansion of the SWAMIH-2 Investment Fund is a major boost for India’s real estate sector, particularly in addressing stalled housing projects and supporting middle-class homebuyers. With an additional ₹15,000 crore allocation, the initiative will help unlock stuck inventory, stabilise property prices, and increase the supply of affordable housing, benefiting both developers and homebuyers.”
Pradeep Aggarwal, Chairman, Signature Global (India) said, “The SWAMIH Fund 2 with ₹15,000 crore will accelerate the completion of stalled housing projects, bringing relief to over one lakh homebuyers. The ₹1 lakh crore Urban Challenge Fund will play a pivotal role in transforming cities into vibrant growth hubs, ensuring balanced regional development.”
Vineet Nanda, Director, Sales & Marketing, Krisumi Corporation, said, “The launch of SWAMIH Fund 2, with a dedicated corpus of ₹15,000 crore to complete one lakh stalled housing projects, stands out as a landmark initiative. This measure will accelerate the completion of essential housing projects and restore buyer confidence, laying a strong foundation for a more robust residential market.”
