May 14, 2021 3:00:50 am
The first project to receive last mile funding, under a government scheme to support stuck affordable housing projects, gave possession of completed flats to homeowners in Mumbai on Thursday. Finance Minister Nirmala Sitharaman Thursday said the first residential project completed under the government’s Special Window for Affordable & Mid-Income Housing (SWAMIH) would help unlock liquidity in the real estate sector and provide a boost to core industries such as cement and steel.
Located in Borivali, Mumbai, the Rivali Park residential project was the first to receive funding under the SWAMIH Fund, which was announced in November 2019 with an estimated fund size of Rs 25,000 crore. Handing over possession through an online event to buyers stuck in the project for several years, she said the “last mile funding” scheme would act as a catalyst for real estate sector and as a stimulus for the economy.
Need of the scheme
Liquidity squeeze and cash strap situation that the real estate sector faced in 2019 made things difficult, prompting the government to launch this scheme, directed towards the middle class.
Liquidity squeeze and cash strap situation that the real estate sector faced in 2019 made things difficult, prompting the government to launch this scheme, she said. “This particular scheme of the government has primarily and only kept its focus on relieving the suffering of the middle class who borrow money from banks to invest in their homes, and who, for no fault of theirs, suffer because houses are not given to them,” she said.
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Rivali Park Wintergreens is the first investment by the SWAMIH Fund, which in turn is managed by SBICap Ventures. Spread over 7 acres and consisting of 708 units of various configurations, the project is developed by CCI Projects Pvt Ltd (CCIPPL), an associate company of Cable Corporation of India Ltd. A loan sanction of Rs 180 crore was given to the project in February 2020, out of which around Rs 125 crore was utilised to complete the project.
“Core industries…cement, steel all of them are going to benefit because of the demand and overall economy will have such a stimulus and this what a sustained stimulus is being given by the government together with the institutions,” she said. She added the Fund has worked its way through the difficult period of Covid, and once these homes are constructed and completed, a large amount of capital locked up in these projects will be released.
State Bank of India Chairman Dinesh Kumar Khara said that in the last 15 months, SBI made significant progress to increase the scale of operations to a level that is generally achieved in 3 to 4 years by other private equity funds.
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