Finance Minister Nirmala Sitharaman on Thursday said the real estate sector is at the cusp of a turnaround following the SWAMIH initiative,
Finance Minister Nirmala Sitharaman on Thursday said the real estate sector is at the cusp of a turnaround following the SWAMIH initiative, under which Rs 8,767 crore has been approved for 81 projects, enabling completion of almost 60,000 homes across India. While reviewing the performance of the Special Window for Affordable and Mid Income Housing (SWAMIH), the minister underlined the need for speedy efforts to complete construction of projects for which last mile funding has been sanctioned, an official release said.
Besides senior officials of the Finance Ministry, the review meeting was attended by the officials of the State Bank of India, SBI Capital Markets Limited and SBICAPS Ventures Limited (SVL).”this special window was an unprecedented initiative that has provided extraordinary support to the real estate sector and poised it at the cusp of a turnaround despite such turbulent economic times,” the minister said.
She 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 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 urgent basis.
The SWAMIH Investment Fund I has progressed from a policy announcement to an operational initiative on the ground, the release said, adding “the fund has so far approved 81 projects with an investment of Rs 8,767 crore that will enable the completion of almost 60,000 homes across India.”
These projects are spread across a mix of markets including large cities such as National Capital Region (NCR), Mumbai Metropolitan Region (MMR), Bengaluru, Chennai, Pune, and also tier 2 locations, including Karnal, Panipat, Lucknow, Surat, Dehradun, Kota, Nagpur, Jaipur, Nashik, Vizag and Chandigarh.
Amongst these projects, investments in 18 projects have been given final clearance and disbursement is at various stages across seven residential projects, it added. Applications from 353 stressed projects are under examination for provision of assistance.
“It was also observed that activation of these construction sites by the special window would provide employment opportunities for various skilled and semi-skilled labourers,” the release said.
Additionally, the fund is actively evaluating options to provide relief to about 15,000 home buyers in certain long-stalled projects which are pending before the Supreme Court for resolution. The recent initiative by the fund to reduce the cost of capital to 12 per cent has resulted in an increase in the number of projects that meet the funding criteria laid out under the special window, it added.