By Admin 
Real Estate Projects India: Thousands of real estate projects in many big cities of the country were lying incomplete for years due to financial crisis, debt pressure, weak sales and legal disputes. However, after the implementation of RERA, some improvements were seen.
But in the last 1-2 years, government and private funding, increasing demand and new models have played an important role in bringing these projects back on track.
Swami Fund becomes support
SWAMIH Fund (Special Window for Affordable and Mid Income Housing) was launched in 2019. The objective of this fund of Rs 25 thousand crore is to provide last stage funding to those projects which are financially viable but remained incomplete due to lack of funds. The construction of these projects is completed under the supervision of SBI Capital Markets.
According to estimates, about 61 thousand units of 145 projects have been completed across the country, due to which the stuck capital of about Rs 37 thousand crore has come back into circulation. Keeping this in view, SWAMIH Fund 2.0 of Rs 15 thousand crore has also been brought, the aim of which is to complete 1 lakh houses.
What do experts on the subject say?
Geetanjali Khanna, MD of ReErco, the company which is reviving the KVD Wind Park project of Greater Noida West, says that they got SWAMIH funds on the basis of timely construction and strong financial management. Their priority is to give timely possession with better construction.
According to Dinesh Gupta, President of CREDAI Western UP, funding is the most important link in completing the stuck projects, because lack of cash stops construction and also affects the confidence of buyers.
Private funding also became a strength
Along with government initiatives, private institutions are also investing in incomplete projects through Alternative Investment Funds (AIF). Before investment, a thorough assessment of the land, legal status and market demand is done.
SGRE Fund has invested about Rs 125 crore in NCR projects. Its lead promoter Suresh Garg says that projects whose financial condition is strong and on which there is no legal dispute are given priority.
According to Renox Group Chairman Shailendra Sharma, to restart the incomplete projects, it is necessary to clear the dues of the authority, banks and allottees, and alternative funding can give a new direction to the sector.
Relief from insolvency and new model
Many projects are also being resolved through NCLT. Although success has been limited, due to increasing demand many projects are now being completed under the supervision of IRP.
According to Himanshu Garg, Director of RG Group, under the reverse insolvency model, projects are gaining momentum again and possession of thousands of units is being given.
Apart from this, the ‘Refurbish and Renovation’ model is also emerging rapidly, in which incomplete towers are completed by giving them to new developers. According to Atul Vikram Singh, Director of Vision Business Park, long stalled projects are now being brought into the market in a new form, thereby increasing both supply and stability.
Overall, due to government and private funding, insolvency process and new development models, stranded real estate projects are getting new momentum and the confidence of home buyers is also gradually returning.
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