Govt invests Rs 5k crore in SWAMIH fund
The Union government has invested approximately 5,000 crore in SWAMIH Investment Fund I, assisting the fund in reaching its final close of 15,530 crore. The fund is managed by SBICAP Ventures and invests in distressed residential projects.
The Special Window for Completion of Construction of Affordable and Middle-Income Housing Projects (SWAMIH I), established under the Special Window for Affordable and Middle-Income Housing, aims to provide priority debt financing to complete stressed, brownfield, and RERA-registered residential projects.
The fund is managed by SBICAP Ventures, a unit of State Bank of India, and is sponsored by the finance ministry. Along with Life Insurance Corporation of India, SBI is one of the fund's anchor investors. HDFC Ltd. and major state-run banks are among the other investors.
"This round of capital infusion represents a significant step forward in our mission to provide a much-needed boost to the real estate industry." SWAMIH Investment Fund I continues to closely monitor all construction spending to ensure that capital is only used to complete the project "SWAMIH Investment Fund's chief investment officer, Irfan A. Kazi, stated "The fund has already completed the construction of 19,500 homes and is on track to deliver approximately 20,000 homes per year for the next three years.""
In an interview, Kazi stated that the fund has so far approved 127 projects in 30 cities, resulting in the completion of 79,000 homes over time.
SWAMIH is a category II Alternative Investment Fund (AIF) that was announced in September 2019 by Finance Minister Nirmala Sitharaman and approved by the Cabinet in November 2019. The fund received a commitment of Rs 10,037.5 crore in its first close on December 6, 2019, with the government committing a fund infusion of up to Rs 5,000 crore.
As of now, it is evaluating 286 projects in more than 30 Indian cities, with the goal of completing over one lakh homes. The additional commitment will allow the Fund to continue evaluating transactions until December 2024.
"The State Bank Group will continue to provide all execution capabilities required to fully implement this strategic initiative of the Government of India." The Government of India's increased commitment "is a statement of confidence in the execution abilities of SBICAP Ventures Ltd. as the investment manager and the entire team at SWAMIH Investment Fund I," said Suresh Kozhikote, MD and CEO of SBICAP Ventures.