As of November 16, 2023, the government has sanctioned 342 proposals under the Special Window for Completion of Affordable and Mid-Income Housing (SWAMIH) investment fund, amounting to Rs 37,554 crore. This initiative aims to aid over 2,18,699 homebuyers and revive projects valued at Rs 94,367 crore.
Union Minister of State for Housing and Urban Affairs, Kaushal Kishore, highlighted that the SWAMIH investment fund was established to support homebuyers affected by stalled projects. The fund prioritizes stalled projects with a positive net worth and registered under RERA. It also encompasses projects declared as non-performing assets or undergoing proceedings before the National Company Law Tribunal under the Insolvency and Bankruptcy Code.
To address the issues associated with stalled real estate projects, a committee chaired by former NITI Aayog chief Amitabh Kant was formed by the Central government. This committee proposed various measures to facilitate the completion of stalled projects and their transfer to homebuyers. Emphasizing the financial viability of these projects as a core concern, the committee recommended multiple measures to improve their feasibility.
The committee’s August report suggested incentivizing financial institutions to fund these projects by proposing a scheme akin to the one offered to MSMEs, featuring subsidized interest rates. Additionally, it proposed the establishment of a guarantee fund, similar to the one for MSMEs, to encourage funding for these projects. The Ministry of Housing and Urban Affairs (MoHUA) is expected to outline a comprehensive scheme and submit it to the Ministry of Finance.
The committee stressed that prioritizing steps to enhance the internal rate of return of these projects would attract increased funding. It also recommended utilizing legal interventions such as the insolvency and bankruptcy code only as a last resort, promoting a win-win resolution for all stakeholders involved.