A Government-backed Alternate Investment Fund (AIF) has sanctioned ₹ 12,079 crore to help complete 123 stuck housing projects. The AIF, set up extend last-mile funding, that will enable the completion of 81,308 houses.
The Finance Minister Nirmala Sitharaman’s office tweeted on Thursday that “As of October 5, final approval for investments of ₹ 4,197 crore in 33 projects has been granted by the fund, set up under the Special Window for Affordable and Mid Income Housing (SWAMIH).”
The above said 33 projects involve the completion of the construction of 25,048 houses.
SBICAP Ventures, which is an arm of SBI Capital Markets, is entrusted by the government to manage this AIF.
Tweets from FM’s office also said that “lenders have disbursed as much as ₹ 1,36,140 crore to borrowers under a ₹ 3 lakh crore credit guarantee scheme, which was rolled out on June 1 to help mainly small businesses and professionals’ tide over the Covid-19 shock.”
October 5, lenders sanctioned loans of ₹ 1,87,579 crore under this so-called Emergency Credit Line Guarantee Scheme.
The sanctions have picked up the pace, as the program is being reviewed regularly by the finance minister, along with top government officials. Sitharaman has already asked officials concerned to further speed up the process.
The finance ministry had earlier said that “The projects were spread across a broad mix of markets, including metros and also Tier-2 locations like Karnal, Panipat, Lucknow, Surat, Dehradun, Kota, Nagpur, Jaipur, Nashik, Vizag, and Chandigarh.”
According to an industry estimate late last year, as many as 4.58 lakh housing units were facing delayed delivery across 1,509 stalled projects.
The government had pledged a total of ₹ 10,000 crore for this purpose, as it wanted to kick-start the investment cycle in residential projects and deliver houses to people who have been humbled by the double whammy of undelivered homes and regular repayment of home loans. It was also supposed to boost private consumption once houses are delivered.