In a major relief for countless middle-class families, the Indian government is gearing up to launch the SWAMIH-2 Fund, a massive Rs 15,000-crore initiative designed to rescue nearly 100,000 stuck housing units across the country. This move comes on the back of the significant success achieved by the first SWAMIH fund, which has already enabled the completion of 55,000 dwelling units.
Building on a Proven Model: The SWAMIH Success Story
The Special Window for Affordable and Mid-Income Housing (SWAMIH) Investment Fund was first introduced in November 2019 as a stress fund to tackle the crisis of stalled real estate projects. It operates as an Alternative Investment Fund (AIF) managed by SBI Ventures, with the Economic Affairs Secretary acting as the fund's sponsor. The fund specifically targets RERA-registered affordable and mid-income housing projects that are commercially viable but lack the final infusion of capital to reach completion.
The current SWAMIH-1 Fund has raised Rs 15,530 crore and aims to finish another 30,000 homes within the next 3-4 years. A dedicated team of 30 investment professionals, each averaging 15 years of industry experience, manages the fund's operations. The government has already set aside Rs 1,500 crore as seed capital in the Budget 2025-26 to kickstart the second iteration of this crucial program.
A Last-Resort Lifeline for Homebuyers and Builders
What sets the SWAMIH fund apart is its role as a lender of last resort. It steps in where traditional financing has dried up. The fund considers a wide range of projects, including those from first-time developers, established builders with troubled ventures, entities with poor track records, and even projects entangled in litigation. This inclusive approach is vital to addressing the deep-rooted problem.
The acute need for such an intervention was starkly highlighted by a 2019 PropEquity study cited by PTI, which found that approximately 1,500 projects comprising 458,000 housing units were stuck or distressed. These projects required an estimated Rs 55,000 crore to see the light of day. For countless homebuyers, this has meant the dual burden of paying EMIs for homes they have not received, with construction frozen indefinitely.
How SWAMIH-2 Will Operate and Bring Relief
Like its predecessor, SWAMIH-2 will focus on providing last-mile funding. This means it will inject capital specifically to complete construction, enabling developers to hand over finished apartments to waiting buyers. The primary beneficiaries are middle-class homebuyers who have invested their life savings but are left in limbo due to stalled construction.
The government is currently in the process of finalizing the operational details of SWAMIH-2. Once it receives the final nod, the fund will begin its operations, aiming to bring succor to stranded homebuyers and revive the stalled housing sector, which has significant ripple effects on the broader economy through job creation and demand for construction materials.
This initiative represents a critical public-private partnership aimed at resolving one of the most persistent pain points in the Indian real estate market, restoring faith among homebuyers and injecting liquidity into viable but stalled projects.
