Special Window for Funding Stalled Affordable and Middle-Income Housing Projects (SWAMIH) fund is a scheme of the Indian Government. The main purpose of this program is to fund a deadlocked housing project with debt capital. These housing projects fall into the affordable and middle-income housing categories.
Highlights
This is a Category II AIF Debt Fund established with the support of the Government of India. AIF is an alternative investment fund. Launched in the year 2019, it is registered with Securities and Exchange Board of India. It was started to complete the construction of a middle-income RERA registration project and an affordable housing project. RERA is a law concerning real estate law (regulation and development). For the SWAMIH fund, SBICAP Ventures is an investment manager which is a wholly SBI owned subsidiary. This fund is run by the economic sector, which is subordinate to the Ministry of Finance.
AIF is a privately held investment vehicle that raises funds from experienced investors. SEBI is the supervisor of AIF. AIF collects investments only from specific investors. Investors are predefined. There are three categories of AIF which are Category I, II and III. Category I consists of funds invested in companies with growth potential. They are small businesses and start-ups. This category includes businesses that have a positive impact on economic growth. They have great potential for job creation. Categories of Category I funds include infrastructure funds, angel funds, venture capital funds and social venture funds.
Category II funds are those that are invested in equity and debt securities. The Indian government does not allow concessions in this category. Category II funds include real estate funds, debt funds and private equity funds.
The funds that provide returns are Category III funds. They use different trading strategies to generate the returns. There are no concessions or incentives to these funds. Category III are private investments in hedge funds and public equity funds.
Aim
The SWAMIH Fund’s goal is to fund projects with positive net worth, such as projects declared as bad assets (NPA) and projects subject to NCLT-IBC national company court proceedings under the Bankruptcy and Bankruptcy Act. SWAMIH Mutual Fund will fund a tight housing project for the country’s affordable middle income at the last mile.
Benefits of SWAMIH Fund
Most of the capital bound by these projects will be released as soon as these homes are built and completed. This funds will create jobs for construction workers and give momentum to related industries such as steel and cement. It will greatly improve the country’s economy and also improve its banking and NBFC portfolios.
Current Status of SWAMIH Fund
The government has approved 95 projects under SWAMIH. AMIH has approved 95 projects (as of October 2021). It has approved over 9,500 rupees. This means that about 57,700 apartments will be completed. The Rivali Park Housing Project was the first project to receive the fund. In the month of October 2021, the SWAMIH Fund achieved two goals which are completing the project and successfully replacing the investment. The project was completed within the blockade of COVID 19.