Stuck realty projects get Rs 8,767 crore from govt’s investment fund; 60,000 houses to be completed

Investments in 18 of the 81 projects have been given final clearance and disbursement is at various stages across seven residential projects.

An alternate investment fund (AIF), set up to extend last-mile funding to complete stuck housing projects, has approved Rs 8,767 crore for 81 projects, which will enable the completion of almost 60,000 houses across the country, according to the latest official data.

Finance minister Nirmala Sitharaman on Thursday reviewed the performance of the fund set up under the Special Window for Affordable and Mid Income Housing (SWAMIH) with secretaries of the ministries of finance and the senior management team of the State Bank of India, SBI Capital Markets and SBICAPS Ventures (SVL). SBICAP Ventures, an arm of SBI Capital Markets, is entrusted by the government to manage this AIF.

The 81 projects are spread across a mix of markets, including metros and also Tier- 2 locations like Karnal, Panipat, Lucknow, Surat, Dehradun, Kota, Nagpur, Jaipur, Nashik, Vizag and Chandigarh, the finance ministry said in a statement.

Additionally, the Fund is actively evaluating options to provide relief to more than 15,000 homebuyers in certain long- stalled projects which are pending before the Supreme Court for resolution. Offtake under the scheme was hit by the outbreak of the Covid-19 pandemic even though authorities had moved quickly to set up the fund, and Sitharaman’s review on Thursday was aimed at expecting the process.

Investments in 18 of the 81 projects have been given final clearance and disbursement is at various stages across seven residential projects. “Applications from 353 stressed projects are under examination for provision of assistance. It was also highlighted that activation of these construction sites by the Special Window would provide employment opportunities for various skilled and semi-skilled labourers,” the ministry said.

The fund was announced on November 6, 2019 and raised Rs 10,530 crore from 14 investors, including LIC, HDFC and SBI, when it declared its first close in December. The plan was to have a Rs 25,000 crore fund, with contribution of both the government and other investors. The government had pledged a total of Rs 10,000 crore for this purpose.