Real Estate Rescue Fund Approves Rs 8,767-Crore Investments In 81 Projects
Laborers prepare reinforcing steel on an Indiabulls Real Estate Ltd. commercial building construction site at dusk in the Lower Parel area of Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

Real Estate Rescue Fund Approves Rs 8,767-Crore Investments In 81 Projects

The government-backed fund for stressed housing projects has approved investments worth Rs 8,767 crore in 81 projects.

Among the 81 projects, investments in 18 have received final clearance, said a statement by the Ministry of Finance. These include homes by Mantri Developers, Naman Group, Lodha Group and Ansal Housing, among others.

There are about 4.58 lakh stalled housing units that require Rs 55,000 crore for completion in India, according to SBICAP Ventures Ltd., which manages the Rs 25,000-Crore Special Window for Affordable and Mid-Income Housing Projects or SWAMIH. The government’s contribution is around Rs 10,000 crore.

As of April, BloombergQuint found that the fund had hardly disbursed anything as lenders were unwilling to give a “no-objection certificate” unless they got a portion of the project cash flow.

The Finance Ministry’s statement, however, said that approval for 81 projects will now enable completion of almost 60,000 homes across India.

These projects are spread across National Capital Region, Mumbai Metropolitan Region, Bengaluru, Chennai, Pune, and tier 2 cities such as Karnal, Panipat, Lucknow, Surat, Dehradun, Kota, Nagpur, Jaipur, Nashik, Vizag, and Chandigarh, the statement said.

Real estate projects approved for funding through  ‘Special Window for Affordable and Mid-Income Housing Projects’ or SWAMIH fund.
Real estate projects approved for funding through ‘Special Window for Affordable and Mid-Income Housing Projects’ or SWAMIH fund.

The fund is also examining 353 stressed projects to provide assistance, the statement said. It’s also evaluating options to provide relief to about 15,000 homebuyers in certain stalled projects which are pending for resolution before the Supreme Court.

Private and public sector banks, non-bank lenders and housing finance companies should see the special window as a stakeholder and increase their support for early completion of stressed projects, Finance Minister Nirmala Sitharaman said in the statement.

The fund was first announced in September 2019 by the finance minister.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.