The Center adds another 5,000 crores to the SWAMIH Investment Fund
- ByStartupStory | December 26, 2022
The SWAMIH Investment Fund I’s final closing of Rs 15,530 crore was made possible by an investment of roughly Rs 5,000 crore from the Union government. The strained residential developments are the focus of the fund managed by SBICAP Ventures.
The Special Window for Completion of Construction of Affordable and Mid-Income Housing Projects (SWAMIH I), a last-mile financing platform established under the Special Window for Affordable and Mid-Income Housing, aims to provide priority debt financing for the completion of stressed, brownfield, and residential projects that have registered under the Real Estate Regulation Act (RERA).
The finance ministry sponsors the fund, which is administered by SBICAP Ventures, a branch of the State Bank of India. SBI and Life Insurance Corp. of India are two of the fund’s cornerstone investors. Additional investors include major state-run banks and HDFC Ltd.
“This round of capital infusion marks a big step in our journey to provide a much-needed boost to the real estate industry. We at SWAMIH Investment Fund continue to closely monitor all construction spending to ensure that the capital is utilized only for the completion of the project,” said Irfan A. Kazi, chief investment officer, SWAMIH Investment Fund. “The fund has already completed the construction of 19,500 homes and is on track to deliver about 20,000 homes every year for the next three years.”
In an interview, Kazi said that the fund has so far given the go-ahead for 127 projects spanning 30 cities, which would result in the construction of 79,000 homes over time.
Nirmala Sitharaman, the finance minister, introduced SWAMIH as a category II Investment Fund (AIF) in September 2019, and the Cabinet approved it in November 2019. On December 6, 2019, the fund’s first close saw a commitment of 10,037.5 crore, with the government promising a capital infusion of up to 5,000 crore.
As of right now, it is evaluating 286 projects spread over more than 30 Indian cities, which will aid in the completion of more than one lakh dwellings. The Fund will be able to continue evaluating projects through December 2024 thanks to the new investment.
“The State Bank Group will continue to provide all execution capabilities required to fully implement this strategic Government of India initiative. The increased commitment from the Government of India is a statement of confidence in the execution abilities of SBICAP Ventures Ltd. as the investment manager and the entire team at SWAMIH Investment Fund I,” said Suresh Kozhikote, MD and CEO at SBICAP Ventures.
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