Finance Minister holds review meeting for stressed Residential Projects
- Rs 8767 crore approved for 81 projects
- Focus on boosting investment in the Real Estate Sector
- 60,000 homes will be completed across India
- Activation of construction sites by the Special Window would provide employment opportunities for skilled and semi-skilled labour
New Delhi: Union Minister for Finance & Corporate Affairs Nirmala Sitharaman, on Thursday 23 July reviewed the performance of Special Window for Affordable and Mid-Income Housing (SWAMIH) Fund with Secretaries of Ministries of Finance and senior management team of the State Bank of India, SBI Capital Markets Limited and SBICAPS Ventures Limited (SVL). So far 81 projects have been approved with an investment of Rs 8767 crore.
The SWAMIH Investment Fund-1 has progressed from a policy announcement to an operational initiative on the ground. It has approved 81 projects 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 NCR, MMR, Bengaluru, Chennai, Pune and also Tier 2 locations, including Karnal, Panipat, Lucknow, Surat, Dehradun, Kota, Nagpur, Jaipur, Nashik, Vizag, and Chandigarh. In these projects, investments in 18 projects have been given final clearance and disbursement is at various stages across 7 residential projects.
Applications from 353 stressed projects are under examination for provision of assistance. During review, it was also highlighted that activation of these construction sites by the Special Window would provide employment opportunities for skilled and semi-skilled labourers. Additionally, the Fund is actively evaluating options to provide relief to 15,000 home buyers in certain long-stalled projects that are pending before the Supreme Court for resolution.
The recent initiative by the Fund to reduce the cost of capital to 12% has resulted in an increase in the number of projects that meet the funding criteria laid out under the Special Window. While acknowledging the steps taken by the Special Window to expedite participation from existing lenders, the Minister suggested that both private and public Banks, NBFCs and HFCs should see the Special Window as a stakeholder and increase support to ensure early completion of stressed projects.
The Finance Minister asked the Department of Economic Affairs to closely monitor the performance of the SWAMIH Investment Fund-1 in order to ensure that the capital raised by the Fund is rapidly committed towards resolving stressed projects and remove any impediments that could arise in this process.