Finance Minister Nirmala Sitharaman recently said that the first-ever residential project concluded under the government’s SWAMIH (Special Window for Affordable & Mid-Income Housing) would enable liquidity amidst the real estate sector. It will also provide a boost to core industries like cement and steel.
The Rivali Park residential project located in Borivali, Mumbai, is the first-ever project that received funding under the SWAMIH Fund, announced in November 2019. Its estimated fund size is 25,000 crore. According to Finance Minister Nirmala Sitharaman, the “last mile funding” scheme would act as a stimulus for the economy and a catalyst for the real estate sector, handing over the possessions through an online event to buyers who are stuck in the project for several years.
She also mentioned how the squeezed liquidity and cash strap situation faced by the real estate sector in 2019 took a difficult turn of events, motivating the government to launch this scheme.
“This particular scheme of the government has primarily and only kept its focus on relieving the suffering of the middle class who borrow money from banks to invest in their homes, and who, for no fault of theirs, suffer because houses are not given to them,” she said.
The first investment done by the SWAMIH Fund Rivali Park Wintergreens is managed by SBICap Ventures. Consisting of 708 units of various configurations, this 7 acres spread project is developed by CCI Projects Pvt Ltd.
In February 2020, Rs 180 crore loan sanction was provided to this project and Rs 125 crore was utilized in the compilation of the project.
“Core industries…cement, steel all of them are going to benefit because of the demand and overall economy will have such a stimulus and this what a sustained stimulus is being given by the government together with the institutions,” said Sitharaman.
She added that the Fund has worked its way through difficult times like Covid, and upon the compilation and construction of these homes, a large amount of capital stuck in these projects will be released.
State Bank of India Chairman Dinesh Kumar Khara said that in a short span of 15 months, SBI made significant progress to increase the scale of operations to a level generally achieved in 3 to 4 years as compared to other private equity funds.