SWAMIH Investment Fund 2.0

✦Key Features

• Government-backed social impact fund; last-resort financing for distressed projects
• Target: 1 lakh additional stalled housing units completed
• Budget: ₹15,000 crore (SWAMIH 1.0 had ₹15,530 crore; ₹3,500 crore returned to government)
• SWAMIH 1.0 track record: 50,000 homes delivered; 130+ projects in 30 cities
• Manager: SBICap Ventures (largest domestic real estate PE)
• Eligibility: stressed brownfield RERA-registered affordable and mid-income projects
• Social impact: relieves 4+ lakh homebuyers stuck in stalled projects

✓Eligibility Criteria

• Implementing agencies are the developers of real estate projects that are currently stalled due to a lack of funding.
• The housing project must be registered under the Real Estate Regulatory Authority (RERA) of the respective state.
• Projects must be 'Net-worth Positive,' meaning the value of completed assets must exceed the remaining cost of construction.
• The project must target the 'Affordable' or 'Middle-Income' housing segment as defined by the scheme's price ceilings.
• Only projects that are significantly stalled but have achieved a substantial stage of construction are considered.

★Benefits

• Provision of last-mile funding to ensure the completion of stalled housing projects and delivery of homes.
• Protection of the financial interests of thousands of homebuyers who have invested their life savings in delayed projects.
• Systemic outcomes include reviving the real estate sector and restoring consumer confidence in the housing market.
• The fund provides a structured financing mechanism that ensures transparency and accountability in the use of construction capital.

▶Application Process

• Real estate developers or Homebuyers' Associations submit a formal funding proposal to SBICAP Ventures Ltd, the investment manager.
• The Investment Manager conducts a preliminary screening to check if the project meets the basic eligibility and RERA compliance.
• A rigorous due diligence process follows, involving legal, financial, and technical audits to ensure the viability of the project.
• Following approval by the Investment Committee, a sanction letter is issued and funds are disbursed in tranches linked to construction milestones.

₹ Budget Allocation

15000

Funding Ratio (Centre:State): 100% Government of India backed via SBICAP Ventures (Sovereign Fund model)

Historical Context

Launched initially in 2019 to address the crisis in the real estate sector following the NBFC liquidity crunch. SWAMIH 2.0 was scaled up in 2025 to complete an additional 1 lakh homes.

Challenges

• High cost of capital for developers despite government backing
• Protracted litigation in NCLT/IBC delaying project takeovers
• Shortage of skilled project management consultants for distressed assets
• Geographic concentration of stalled projects in NCR and MMR regions

Reforms & Recommendations

• Fast-tracking NCLT approvals for SWAMIH-funded projects
• Extending the fund to Tier-2 and Tier-3 cities
• Integrating green building standards in the completion phase

Performance Statistics

SDG Linkages

Constitutional Backing

Technology Used

Success Stories

Key Takeaways

• Category-II AIF regulated by SEBI
• Targeting RERA-registered stalled projects
• Social impact focus: Providing homes to the middle-income group
• Managed by SBICAP Ventures Ltd

Convergence Schemes

• Pradhan Mantri Awas Yojana (Urban)
• Real Estate Regulatory Authority (RERA) Compliance
• Insolvency and Bankruptcy Code (IBC)

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