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New Delhi22 minutes ago
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Delivery of more than 4,000 houses of around 16 projects will start from April
- In November 2019, the government announced a special fund to complete the hanging housing projects.
- The government has appointed SBICAP Ventures Limited as the manager of this internet investment fund worth Rs 250 billion.
The results of the 250 billion rupees ($ 3.5 billion) Alternative Investment Fund (AIF) set up by the government to complete stalled housing projects are coming soon. Delivery of the first finished apartment under this scheme can be done this year. Irfan A. Qazi, Chief Investment Officer, SBICAP Ventures Ltd, said delivery of more than 4,000 houses of around 16 projects would begin from 1 April.
The government has appointed SBICAP Ventures Limited as the manager of this AIF. The Special Window for Completion of Construction of Affordable and Mid-Income Housing Projects (SWAMIH) Fund was announced by the government in November 2019. An estimated $ 63 billion worth of projects were stalled in the country at that time.
2 projects to be completed by April
According to Bloomberg, Kazi said that we have approved about 145 projects. There will be an investment of about 145 billion rupees and construction of about 1 lakh houses will be completed. Of these, 47 projects worth 50 billion rupees have got final approval. 112 has received initial approval. The 2 projects will be completed by April.
The government holds 50% of the fund
Qazi stated that his company invests in all projects with a 12% internal rate of return. AIF has 14 investors. The government has invested 50%. LIC and SBI have invested 10% (each). The rest is held by other public and private investors. 100 billion rupees have been raised so far for a total fund of 250 billion rupees.
About 40% of stalled projects are from NCR
He said that according to our survey, about 40% of the stalled projects are in the National Capital Region (NCR). About 25% of the projects are from Mumbai Metropolitan Region. A total of 85% of stalled projects are in the top 7 cities in the country.