SWAMIH-2 Fund Set to Revitalize India's Stalled Housing Projects

The Indian government is preparing to launch SWAMIH-2 Fund to provide last-mile financing for stalled housing projects. With an allocation of Rs 15,000 crore, the fund aims to assist about one lakh middle-class homebuyers and alleviate issues with stalled projects by offering priority debt financing.

In a significant move to address the issues plaguing stalled housing projects across India, the government is on the brink of launching the SWAMIH-2 Fund. Aimed at providing last-mile financing, this fund is expected to offer a lifeline to countless middle-class homebuyers.

The Rs 15,000-crore fund is anticipated to be operational soon, facilitating the completion of numerous stalled residential projects. Sources suggest that the government has already set aside Rs 1,500 crore in seed capital for this special venture, referred to as the Special Window for Affordable and Mid-Income Housing.

The initial SWAMIH initiative, established in November 2019, has successfully facilitated the completion of 55,000 dwelling units, with plans to deliver an additional 30,000 homes in the coming years. The newly announced SWAMIH-2 emerges as a critical financial instrument, particularly for first-time developers and developers facing challenges.

(With inputs from agencies.)