In a huge relief to homebuyers, as many as 101 stressed housing projects have received Rs 10,300 crore sanction for completing their projects under the SBICap managed Special Window for Affordable and Mid Income Housing (SWAMIH) scheme, the finance ministry said on August 21.
This will enable completion of 71,559 dwelling units across various parts of the country.
As many as 22 projects with investment of Rs 3,472 crore were accorded final approval as on August 20, 2020 and will lead to completion of 20,380 home units, it said.
Finance Minister Nirmala Sitharaman held a review meeting last month to assess the progress of SWAMIH scheme.
In July, the government announced that it had approved funding of over Rs 8,700 crore for 81 stressed housing projects, with as many as 27 in Mumbai and 26 in Delhi-NCR, under the Rs 25,000 crore stressed-asset fund set up in 2019.
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, Chandigarh, the finance ministry had said in a statement last month.
While reviewing the performance of the SWAMIH, the finance minister last month had underlined the need for speedy efforts to complete construction of projects for which last mile funding has been sanctioned, the ministry statement had said.
"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 finance minister had said.
The alternative investment fund (AIF), was set up in November last year to provide last-mile funding for stalled real estate projects by the government.
The fund was to help complete over 1,500 stalled housing projects, including even those that have been declared NPAs (non-performing assets) or admitted for insolvency proceedings. The move is likely to help 4.58 lakh housing units across the country. Only RERA-registered projects with positive net worth will be provided funds.
The recent initiative by the Fund to reduce the cost of capital to 12 percent has resulted in an increase in the number of projects that meet the funding criteria laid out under the Special Window, the ministry statement had said in July.