SWAMIH Investment Fund II

Source: ET

Context:

The Government of India is set to launch SWAMIH Investment Fund II, a ₹15,000 crore fund aimed at reviving stalled housing projects and providing relief to distressed homebuyers. The announcement was made by Finance Minister Nirmala Sitharaman in Parliament, highlighting the government’s continued focus on the real estate sector.

What is SWAMIH Fund?

SWAMIH stands for Special Window for Affordable and Mid-Income Housing.

It is a government-backed investment fund designed to provide last-mile funding to stalled housing projects, ensuring their completion and delivery to homebuyers.

SWAMIH Investment Fund II

1. Fund Size

• Total corpus: ₹15,000 crore

2. Objective

• Complete around 1 lakh (100,000) stalled housing units
• Provide relief to:
  • Homebuyers with delayed or stuck projects
  • Developers facing funding shortages

3. Target Segment

• Focus on:
  • Affordable housing projects
  • Mid-income housing projects

4. Implementation Status

• Currently under process of formal launch
• Expected to follow a structured investment and monitoring framework

Background: SWAMIH Fund I

Launch

• Introduced in 2019

Management

• Managed by a State Bank of India (SBI)-led entity

Purpose

• Provide last-mile funding to incomplete housing projects

Need for SWAMIH Fund II

1. Large Number of Stalled Projects

• Many housing projects remain incomplete due to:
  • Liquidity crisis
  • Developer insolvency
  • Regulatory delays

2. Homebuyer Distress

• Buyers face:
  • Delayed possession
  • Financial burden (EMIs + rent)

3. Real Estate Sector Stress

• NBFC crisis and funding constraints have impacted project completion