News Excerpt
In order to give relief to homebuyers of stalled projects, a Special Window for Completion of Affordable and Mid-Income Housing (SWAMIH investment fund) has been created for funding stalled projects.

SWAMIH Investment Fund
•    SWAMIH investment fund will provide last mile funding to the stressed affordable and middle-income housing projects in the country.
•    Ithas been created for funding stalled projects that are net-worth positive, including those projects that have been declared as Non-Performing Assets (NPAs) or are pending proceedings before the National Company Law Tribunal under the Insolvency and Bankruptcy Code.
•    It was first announced on November 06, 2019 by the Finance Minister as a proposal to set up a ‘Special Window’ in the form of Alternative Investment Fund to provide priority debt financing for the completion of stalled housing projects.
•    SBICAP Ventures, an arm of SBI Capital Markets, is entrusted by the government to manage this AIF.
•    The Sponsor of the Fund is the Secretary, Department of Economic Affairs, Ministry of Finance, Government of India on behalf of the Government of India.

Requirement
    Several real estate projects have suffered due to a combined effect of two changes in the real estate sector.
    On one hand, incremental launches and slow sales have increased unsold inventory in each project while that effect has then got compounded by the fact that consumer preference is now towards completed projects rather than under construction projects.
    This preference has developed as consumers are largely avoiding taking project completion risk and instead are more inclined to completed projects.
    SWAMIH Investment Fund has been formed to complete construction of stalled, brownfield, RERA registered residential developments that are in the affordable housing / mid-income category, are net-worth positive and requires last mile funding to complete construction.