The government is preparing to operationalise the SWAMIH-2 Fund, a strategic initiative aimed at completing nearly one lakh stalled housing units, offering much-needed relief to middle-income homebuyers. With the real estate sector still grappling with project delays and financing challenges, the new Rs 150 billion fund is expected to unlock last-mile funding for commercially viable but stalled residential developments across India.
The SWAMIH-2 Fund builds upon the success of the first SWAMIH Fund, launched in 2019, which provided priority debt financing to stressed housing projects and helped deliver over 55,000 dwelling units. Industry experts note that SWAMIH-2 will adopt a similar structure as an Alternative Investment Fund (AIF), with SBI Ventures acting as the investment manager and oversight by the Department of Economic Affairs, Ministry of Finance. “The fund acts as a lender of last resort for developers facing financial stress, litigation challenges, or delayed projects,” said an industry analyst. “By providing structured financing, it mitigates project risk and instils confidence among homebuyers.” Preliminary estimates suggest that India still has thousands of stalled projects, with funding requirements running into hundreds of billions of rupees.
A key focus of SWAMIH-2 is to ensure timely project completion while promoting transparency and accountability. The government has already earmarked Rs 15 billion as seed capital, with operational guidelines in the final stages of approval. This funding is expected to accelerate delivery timelines and reduce uncertainty for buyers, particularly in mid-income and affordable housing segments where project delays have created significant financial and emotional strain. Real estate stakeholders see the fund as a critical mechanism for sustaining investor confidence and supporting the broader housing ecosystem. “SWAMIH-2 not only addresses stalled projects but also strengthens market credibility, benefiting developers, lenders, and end-users,” an official observed. By offering last-mile financing, the initiative can prevent distressed assets from further affecting the sector’s financial health.
As India pursues its ambitious urban development goals and housing-for-all targets, SWAMIH-2 is positioned to provide a scalable model for resolving project bottlenecks while ensuring equitable access to homes. The initiative reinforces the government’s role in creating a resilient, inclusive, and sustainable housing sector that aligns with urban sustainability priorities. The fund is expected to be operationalised shortly, potentially setting a benchmark for future interventions in affordable and mid-income housing. Once active, it will serve as a template for integrated financial support aimed at achieving completion, promoting transparency, and safeguarding homebuyer interests across the country.
Government To Launch SWAMIH2 Fund To Complete One Lakh Homes
