From UPSC perspective, the following things are important :
Prelims level : SWAMIH Fund
Mains level : Housing for all
Union Minister for Finance has informed that so far Rs 8767 crore has been approved for 81 projects under Special Window for Affordable and Mid-Income Housing (SWAMIH) Investment Fund I.
Try this MCQ:
Q.The SWAMIH Fund recently seen in news is related to:
(a) Higher Education (b) MSMEs (c) Housing (d) Highways
- In November 2019, the Finance Minister had cleared a proposal to set up a ‘Special Window’ called SWAMIH in to provide priority debt financing for the completion of stalled housing projects.
- SWAMIH Investment Fund has been formed to complete the construction of stalled, brownfield, RERA registered residential developments that are in the affordable housing / mid-income category.
- The Sponsor of the Fund is the Secretary, Department of Economic Affairs, Ministry of Finance, and Government of India on behalf of the Government of India.
- The fund is set up as a Category-II AIF (Alternate Investment Fund) debt fund registered with SEBI and would be professionally run.
Why need such funds?
- Several real estate projects have suffered due to a combined effect of two changes in the real estate sector.
- On one hand, incremental launches and slow sales have increased unsold inventory in each project.
- While the effect has then got compounded by the fact that consumer preference is now towards completed projects rather than under-construction projects.
- This preference has developed as consumers are largely avoiding taking project completion risk and instead are more inclined to completed projects.