What is SWAMIH Investment Fund?
The SWAMIH Investment Fund is a social impact fund designed to provide debt financing for completing stalled, brownfield, and RERA-registered residential projects. Managed by SBICAP Ventures Ltd., a State Bank Group company, the Fund is sponsored by the Union Ministry of Finance. It was launched in 2019.
Why is SWAMIH Investment Fund in News?
SWAMIH is regarded as the lender of last resort for distressed projects, including those with litigation issues or troubled histories. The Fund has provided final approval to nearly 130 projects worth around Rs 12,000 crore and has raised Rs 15,530 crore to date. It has completed 20,557 homes and aims to complete over 81,000 homes in the next three years across 30 tier 1 and 2 cities. One of the biggest projects completed using SWAMIH is the Rivali Park residential project in Mumbai. The Fund has contributed to the growth of ancillary industries in the real estate and infrastructure sectors by unlocking liquidity of over Rs. 35,000 crores.
What is SWAMIH Investment Fund?
The established developers with stalled projects and non-performing assets are identified. The fund provides financial support to these projects. This includes projects that are facing litigation issues and also those projects that are facing customer complaints.
How does the SWAMIH Investment Fun work?
It provides capital for the completion of a project. The financial assistance is provided in the form of non-convertible debentures. Non-convertible debentures are instruments with which corporates and other private entities may raise funds. The main criterion is that the fund shall be used only by projects that are RERA registered.
RERA means Real Estate Regulatory Authority. Companies have to register in RERA before building, advertising, selling, investing, etc. This is to ensure transparency and accountability. This is done to help the promoter and the purchaser.
Month: Current Affairs - March, 2023
Category: Government Schemes Current Affairs