Major relief for homebuyers: 101 stressed housing projects get last-mile funding, says FinMin

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August 21, 2020 5:01 PM

SWAMIH is working at a fast pace to provide relief to homeowners and 22 projects with an investment of Rs 3,472 crore received final approval and will lead to the completion of 20,380 home units. 

SWAMIH, housing project, nirmala sitharaman, finance minister, finmin, funding101 stressed housing projects have been sanctioned Rs 10,300 crore for completion.

In a major relief to homebuyers, the finance ministry today said that under the Special Window for Affordable & Mid-Income Housing Fund (SWAMIH), 101 stressed housing projects have been sanctioned Rs 10,300 crore for completion. The government added that the move will provide relief to 71,559 homeowners. The ministry further said in a tweet that so far seven sites have activated construction plans with material and manpower. Finance Minister Nirmala Sitharaman-led ministry underlined that SWAMIH is working at a fast pace to provide relief to homeowners and as on 28 August, 22 projects with an investment of Rs 3,472 crore received final approval and will lead to the completion of 20,380 home units. 

In July, FM Sitharaman held a review meeting to assess the progress of the SWAMIH scheme and had highlighted the need for speedy efforts to complete the construction of projects for which last-mile funding has been sanctioned. FM Sitharaman had suggested that both private and public sector banks, non-banking financial companies (NBFCs) and housing finance companies (HFCs) should see the special window as a stakeholder and increase support for early completion of stressed projects. During the review meeting, Sitharaman had also asked the Department of Economic Affairs to closely monitor the performance of SWAMIH to ensure that the capital raised is used for resolving stressed projects on an urgent basis. 

Also Read | RBI at end of rate cut cycle, onus of economic recovery is with govt now: SBI Research

Last year, the Union Cabinet had approved setting up an alternative investment fund (AIF) worth Rs 25,000 crore to provide relief to developers. While the government of India is the sponsor, SBICAP Ventures Ltd (SVL) is the investment manager for this fund. The category II AIF aims to provide senior capital for the last-mile funding to complete the construction of housing projects. Meanwhile, the Ministry of Steel has also asked the steel players of the country to step up and make low-cost houses for the migrant workers, which would not only give a roof to the workers but also boost the steel consumption in the country. 

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