Special Window for Funding Housing Project

The Government has approved the formation of a ‘Special Window’ fund to offer priority debt financing for the completion of stalled affordable and middle-income housing projects. The Government has decided to create an ‘

Alternative Investment Fund’ of about INR 25,000 Crore. Such a fund would be created to boost the stalled affordable and middle-income housing project. As per the Finance Minister, out of the total approved INR 25,000 Crore, Government will provide INR 10,000 Crore. The remaining 15,000 Crore would be provided collectively by the State Bank of India (SBI), Life Insurance Corporation of India (LIC) and others. In the present article, let us understand the meaning of the term ‘Affordable and Middle-Income Housing Projects’ and important aspects of the special window funding.

Meaning of Affordable and Middle-Income Housing Projects

Before understanding the other aspects of the special window, it is important to under the term ‘Affordable and Middle-Income

Housing Projects’: The housing projects can be termed as ‘Affordable and Middle-Income Housing Projects’ when it satisfies the following criteria:

RERA carpet area of the housing units does not exceed 200 sq. m.
The housing units price should be as follows:
- Up to or less than INR 2 Crores in Mumbai Metropolitan Region.
- Up to or less than INR 1.50 Crores in National Capital Region, Kolkata, Chennai, Bangalore, Pune, Hyderabad and Ahmedabad.
- Up to or less than INR 1 Crores in remaining parts of India.

Applying for Funding

The funds would be managed by the SBICAP Ventures Limited. In other words, SBICAP Ventures Limited would be the Investment Manager.
The Alternative Investment Fund would provide support to the builders who require last-mile funding to complete their stuck up projects.
The maximum funding to any single project under special window funding would be INR 400 Crore.
Types of projects that qualify the below criteria can be selected under the special window:
- Housing projects in an affordable and middle-income group that require last-mile funding to complete the construction.
- Housing projects that are already registered under RERA [(Regulation and Development) Act, 2016] can only qualify under the special window.
- Net worth positive projects (including NPAs).
- Housing projects that are undergoing proceeding under NCLT (National Company Law Tribunal).
Net worth positive projects means:
- (The value of receivables + the value of unsold inventory) > (the completion cost + the outstanding liabilities).

Back to Learn

Frequently Asked Questions

Common questions about Special Window for Funding Housing Projects.

The 'Special Window' fund is an alternative investment fund created by the Government to provide priority debt financing for the completion of stalled affordable and middle-income housing projects. It aims to give a boost to such stuck housing projects by offering last-mile funding for their completion.

The total corpus of the 'Special Window' fund is around INR 25,000 crore. Out of this, INR 10,000 crore will be provided by the Government, while the remaining INR 15,000 crore will be contributed collectively by the State Bank of India (SBI), Life Insurance Corporation of India (LIC), and others.

To be considered an 'Affordable and Middle-Income Housing Project', the housing units should have a RERA carpet area not exceeding 200 sq. m., and the price of the units should be within certain limits based on the location (up to INR 2 crore in Mumbai Metropolitan Region, up to INR 1.5 crore in major cities, and up to INR 1 crore in the remaining parts of India).

The 'Special Window' fund will be managed by SBICAP Ventures Limited, which will act as the Investment Manager for the Alternative Investment Fund.

The maximum funding that a single project can receive under the 'Special Window' fund is INR 400 crore.

Housing projects that qualify for funding under the 'Special Window' must be affordable and middle-income group projects that require last-mile funding for completion. They should be registered under RERA, have a positive net worth (including NPAs), and may even be undergoing proceedings under the National Company Law Tribunal (NCLT).

In the context of the 'Special Window' fund, 'Net Worth Positive Projects' refer to housing projects where the value of receivables plus the value of unsold inventory is greater than the completion cost plus the outstanding liabilities.

No, housing projects that are not registered under the Real Estate (Regulation and Development) Act, 2016 (RERA) cannot apply for funding under the 'Special Window' fund.

The purpose of setting price limits for housing units to be considered as 'Affordable and Middle-Income Housing Projects' is to ensure that the fund targets genuine affordable and middle-income housing projects and not luxury or high-end projects.

No, there is no specific restriction mentioned in the article regarding the location of housing projects that can apply for funding under the 'Special Window'. As long as the project meets the criteria of being an 'Affordable and Middle-Income Housing Project' and satisfies the other eligibility conditions, it can apply for funding regardless of its location.