Union Minister of Finance Nirmala Sitharaman made a major announcement in her Budget Speech for people falling under the stressed housing category. A fresh fund worth Rs 15,000 crore under the ‘SWAMIH Fund’ has been allocated by the government for completion of 100,000 units in housing projects that are stuck due to construction, permit and other delays, she said in Parliament.
“Under the special window for affordable and mid-income housing (SWAMIH), 50,000 dwelling units in stressed housing projects have been completed, and keys handed over to homebuyers. Another 40,000 units will be completed in 2025, further helping middle-class families who were paying equated monthly-instalments (EMIs) on loans taken for apartments, while also paying rent for their current dwellings,” Sitharaman announced
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“Building on this success, SWAMIH Fund 2 will be established as a blended finance facility with contributions from the government, banks and private investors. This fund of Rs 15,000 crore will aim for expeditious completion of another 100,000 units,” she said.
In November 2019, the government had announced a stress fund called SWAMIH to complete housing projects that are stuck across the nation.
Says Vikas Garg, joint managing director, Ganga Realty: “The government’s continued push for affordable housing, coupled with the Rs 15,000 crore allocation under SWAMIH Fund 2, is a commendable step towards ensuring project completion and reviving stalled developments. These measures will not only enhance housing affordability but also instil confidence in homebuyers and developers alike.
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Sunil Sisodiya, founder, of Geetanjali Homestate, adds: “The introduction of SWAMIH Fund 2, with an allocation of Rs 15,000 crore to facilitate the completion of 100,000 housing units, is a commendable move that will help resolve challenges faced by stalled and delayed real estate projects. This initiative will bring much-needed relief to homebuyers and drive momentum in housing delivery, reinforcing trust in the sector.”
Saransh Trehan, managing director, Trehan Group, however, sounded his disappointment with the budget.
“Key industry demands, such as industry status for the real estate sector and a streamlined single-window clearance system, remain unaddressed. These reforms are crucial to enhancing the ease of doing business, expediting project approvals, and ensuring faster delivery of homes,” he says.
