Context: 

Recently the Prime Minister congratulated new homeowners in Bengaluru’s first project under SWAMIH Fund which has helped more than 3000 families in owning their dream homes. 

About SWAMIH Fund:

• The Special Window for Affordable and Mid-Income Housing (SWAMIH) Investment Fund I is a social impact fund specifically formed for completing stressed and stalled residential projects.
• Launched in: 2019
• Sponsored by: Ministry of Finance
• Managed by:  SBICAP Ventures Ltd., a State Bank Group company.
• Lender of last resort for distressed projects: The Fund will consider first-time developers, established developers with troubled projects, developers with a poor track record of stalled projects, customer complaints and NPA accounts.
• Criteria to be eligible for funding :
  • Project stalled or likely to be stalled if no funding is made available
  • At least 90% of the available Floor Space Index (FSI)/ Floor Area Ratio (FAR) is being developed as Affordable Housing units or Mid-Income Housing units
  • Project is net worth positive – value of sold receivables plus unsold inventory is greater than cost to complete construction and to service the investment by the Fund
  • Project has completed at least 30% of the construction and development
  • Project requires last mile funding – sufficient to complete construction
  • Project which is a part of a RERA registered project.
• Nature of the funding: 
  • The Fund expects to primarily structure its investments in the form of Non-Convertible Debentures. 
  • This funding shall be used only for completion of the stalled project and for purposes as approved.
• Funds raised so far: Rs 15,530 crore with an aim to provide priority debt financing for the completion of stressed, brownfield and RERA-registered residential projects that fall in the affordable, mid-income housing category.

News Source: Indian Express , pib