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The government is preparing to operationalise the SWAMIH-2 Fund, a INR 15,000 crore initiative aimed at completing around one lakh homes stuck in stalled residential projects. The fund is designed to provide last-mile financing to viable affordable and mid-income housing projects registered under RERA. Building on the progress of the first SWAMIH fund launched in 2019, the new window is expected to ease stress for homebuyers awaiting possession and help unlock liquidity in projects facing funding gaps.
The central government is in the final stages of setting up the SWAMIH-2 Fund, a special financing window intended to revive stalled residential projects and facilitate the completion of nearly one lakh homes across the country. The framework and operational mandates for the fund are being firmed up, after which it is expected to be rolled out. Advertisement
The proposed corpus of SWAMIH-2 stands at INR 15,000 crore. As part of the Union Budget 2025-26, the government has already committed INR 1,500 crore as seed capital for the fund. The remaining amount is expected to be mobilised through a mix of government backing and institutional participation, similar to the structure adopted for the earlier SWAMIH initiative.
SWAMIH-2 is focused on providing last-mile funding to affordable and mid-income housing projects that are stalled due to liquidity constraints but remain commercially viable. The fund will primarily support projects registered with the Real Estate Regulatory Authority, ensuring that regulatory compliance and homebuyer protection remain central to the financing process.
The new fund builds on the experience of SWAMIH Fund-1, which was launched in late 2019 as a lender-of-last-resort platform for stressed housing projects. Managed by SBICAP Ventures, the first fund has already helped complete over 55,000 homes, while another 30,000 units are at advanced stages of construction and expected to be delivered. These interventions have provided relief to thousands of homebuyers who were servicing home loan EMIs without receiving possession.
By extending funding to stalled projects, the government aims to reduce prolonged delays, restore buyer confidence, and prevent further deterioration of partially built assets. The approach also helps developers complete construction without resorting to distress sales or project abandonment, while ensuring that public and private investments already made in these projects are protected.
Source PTI
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