The government is set to roll out the SWAMIH-2 fund, aiming to finish 100,000 homes in projects that have hit a snag

By Bricksnwall | 2025-12-26

The government is set to roll out the SWAMIH-2 fund, aiming to finish 100,000 homes in projects that have hit a snag.

New Delhi, December 25 (PTI) The government is putting the finishing touches on the SWAMIH-2 Fund. Sources indicate that the fund would be operationalized shortly, aiming to offer the final financial push needed to complete housing projects that have been stalled.

The introduction of the ₹15,000-crore fund offers a lifeline to around 100,000 middle-class homeowners. These individuals have had their investments frozen, even as they've continued to pay their monthly EMIs on loans secured for their apartments.

The government has set aside ₹1,500 crore as initial capital for the Special Window for Affordable and Mid-Income Housing (SWAMIH) Fund, as outlined in the 2025-26 budget.

Sources indicate that the fund's mandates are nearing completion, and approvals are expected shortly. This fund aims to offer crucial financial support for commercially sound projects and to revive investment in residential developments that have hit a snag.

In November 2019, the Indian government unveiled a stress fund, SWAMIH, designed to revive languishing housing projects nationwide. This initiative took the form of a "Special Window," specifically an Alternative Investment Fund (AIF), which was established to offer prioritized debt financing. The State Bank of India Ventures was designated as the Investment Manager for this particular window.

Under the SWAMIH Fund-1, more than 55,000 homes in troubled housing projects have been finished, and the goal is to provide an additional 30,000 residences during the next three to four years.

The Fund currently employs roughly 30 investment specialists, each boasting an average of 15 years of experience in the field.

Under the SWAMIH Fund-1, a total of ₹15,530 crore has been secured to date. The fund's primary goal is to offer priority debt financing. This funding is intended for the completion of residential projects that are stressed, brownfield, and registered with the Real Estate Regulatory Authority (RERA). These projects must also fall into the affordable and mid-income housing segments.

Given its willingness to work with first-time developers, those with existing projects facing difficulties, and even those with a history of stalled endeavors, the fund effectively serves as a last resort for projects in distress. This includes developers with customer complaints, non-performing asset accounts, and projects entangled in legal disputes.

A 2019 analysis, commissioned by SBI Ventures Ltd and conducted by the data analytics firm PropEquity, found that over 1,500 projects, encompassing 458,000 housing units, were either stopped or under stress. Completing these projects would necessitate a total funding of ₹55,000 crore.

Source: Hindustan Times