NAREDCO urges Government to launch SWAMIH-2 with widened scope

New Delhi, January 17, 2023: National Real Estate Development Council (NAREDCO) has submitted a letter to the Union Finance Ministry to launch SWAMIH-2 with a wider scope in a bid to continue to support the real estate sector in the country.

Appreciating the significant role the SWAMIH Fund played during the Covid period, and the effective solutions it provided, the apex body of India’s real estate sector, has sought provisioning of at least Rs 25,000 crore for this SWAMIH-2 fund in upcoming fiscal FY 2023-24.  NAREDCO noted that the Union Government and the Finance Ministry have continuously   assisted in the positive transformation of the sector have been guiding the industry in the right direction with adequate empowerment and suitable policies.

In its letter to the Finance Minister, Nirmala Sitharaman, NAREDCO also sought the extension of the scheme to new projects. Emphasizing on the need to widen the ambit of the scheme, it has also recommended including stress-free projects and commercial projects to the list of beneficiaries.

“The SWAMIH Fund was one of the most innovative and effective tools which helped solve the problem of last mile funding of stalled housing projects to a great extent, bringing relief to several distressed home buyers. Extending the duration and expanding the scope of this fund would do wonders. Allocation of at least Rs 25,000 crore for next fiscal alone shall boost the economy, create more jobs and attract huge investments,” said  Rajan Bandelkar, President, NAREDCO.

The apex industry body which comes under the aegis of Union Ministry of Housing and Urban Affairs has also recommended that the fund should support complete project funding without factoring the sales inflows.

It also suggested that under the special purpose fund, funding should be provided to all projects irrespective of their risk rating, however, with close monitoring of projects and airtight processes.

Sathish Kumar M, Chairman, NAREDCO Finance Committee (NFC) said, “Relaxing the eligibility criteria for SWAMIH fund beneficiaries, with strict monitoring and oversight would lead to massive growth in realty sector and the economy as a whole along with ensuring compliance and benefits to the genuine beneficiaries. As the fund in its first phase supported stalled housing projects, it should also be extended to the commercial space as it would have multilateral effects ranging from boost in realty to retail sectors.”