Last mile funding scheme

SOURCE: Indian Express

Last mile funding scheme

On Thursday, the first project to receive last-mile funding under a government programme to help stalled affordable housing projects handed over completed flats to homeowners in Mumbai. Finance Minister Nirmala Sitharaman said on Thursday that the first residential project completed under the government’s Special Window for Affordable and Mid-Income Housing (SWAMIH) programme would help unlock liquidity in the real estate sector and boost core industries like cement and steel.

Rivali Park, a residential project in Mumbai’s Borivali neighbourhood, was the first to receive funding from the SWAMIH Fund, which was announced in November 2019 with a fund size of Rs 25,000 crore. She said the “last mile funding” scheme would act as a catalyst for the real estate sector and a stimulus for the economy, handing over possession through an online event to buyers who had been stuck in the project for several years.

The real estate sector’s liquidity crunch and cash crunch in 2019 made things difficult, prompting the government to launch this scheme, she said. “This government scheme has primarily and solely focused on alleviating the suffering of the middle class, who borrow money from banks to invest in their homes and who, through no fault of their own, suffer because houses are not given to them,” she explained.

Last mile funding scheme

The SWAMIH Fund, which is managed by SBICap Ventures, has made its first investment in Rivali Park Wintergreens. CCI Projects Pvt Ltd (CCIPPL), an associate company of Cable Corporation of India Ltd, is developing the project, which spans 7 acres and includes 708 units in various configurations. In February 2020, the project received a loan sanction of Rs 180 crore, of which around Rs 125 crore was used to complete the project.

“Core industries…cement, steel, all of them are going to benefit because of the demand, and the overall economy will have such a stimulus,” she said. She went on to say that the Fund has worked its way through Covid’s difficult period, and that once these homes are built and completed, a significant amount of capital that has been locked up in these projects will be released.

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