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Budget 2025: Govt. announces ₹15,000 cr fund for stressed housing projects; framework to push GCCs in Tier 2 cities
- The fund is targeted at expeditious completion of 100,000 stalled affordable and middle-income housing projects.
Bengaluru: The Union government has proposed allocating ₹15,000 crore for the much-awaited second tranche of the Special Window for Affordable and Mid-Income Housing (SWAMIH) fund, which will have a particular focus on completing stuck housing projects.
The SWAMIH Fund 2 will be established as a blended finance facility with contribution from the government, banks, and private investors, finance minister Nirmala Sitharaman said on Saturday in her Union Budget for 2025-26.
The fund will aim at expeditious completion of 100,000 housing units.
The first SWAMIH fund scheme was introduced in November 2019 to provide priority debt financing for the completion of stalled residential projects. It has raised ₹15,530 crore so far, and invested in stressed, brownfield and residential projects that are registered with the Real Estate Regulatory Authority (Rera) and fall in the affordable, mid-income housing category.
“Under SWAMIH, 50,000 dwelling units in stressed housing projects have been completed, and keys handed over to home buyers. Another 40,000 units will be completed in 2025, further helping middle-class families who were paying EMIs on loans taken for apartments, while also paying rent for their current dwellings,” Sitharaman said in her Budget speech.
Despite a boom in India’s residential sector, the problem of stressed and stuck legacy projects is far from over.
“The real estate sector will receive a much-needed injection of funds with SWAMIH 2, hopefully with a more robust business model involving sovereign funds, banks and private sector funds. It will bring hope to a lakh plus home buyers and bring respite to stressed developers,” said Amit Goenka, managing director and chief executive at Nisus Finance, an investment firm.
Real estate developers have been asking for the second SWAMIH fund for long. Last year, the National Real Estate Development Council (Naredco) urged the finance ministry to introduce the second tranche of the SWAMIH fund for the completion of stuck housing projects across the country.
Also read | Has Rera really served its purpose?
Global centres in Tier 2 cities
Sitharaman in her Budget speech also said that the government will formulate a national framework as guidance to states for promoting global capability centres (GCCs) in emerging Tier 2 cities.
This framework will suggest measures for enhancing the availability of talent and infrastructure, byelaw reforms, and mechanisms for collaboration with the industry, she said.
GCCs, which are the offshore centres of multinational companies, have been identified as key growth drivers to India’s services sector progress. These centres account for over one-third of all occupied Grade A office stock in India, which accounts for over 50% of global real estate demand from GCCs.
“The plan for a national framework to help states expand GCC footprint to Tier-II cities is a forward-looking step towards tapping India’s vast talent pool outside the major cities. This will help in fostering inclusive economic growth beyond major metropolitan areas,” said Samantak Das, chief economist and head of research, India, JLL, a property advisory.
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Business NewsBudgetNewsBudget 2025: Govt. announces ₹15,000 cr fund for stressed housing projects; framework to push GCCs in Tier 2 cities
First Published:1 Feb 2025, 02:23 PM IST
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