Budget 2024-25: NAREDCO seeks funds for completing stressed and stalled residential projects, input tax credit under GST
₹50,000 crore more fund under SWAMIH to complete stalled housing projects across the country, saying this will benefit consumers as well as the industry. The National Real Estate Development Council (NAREDCO) has suggested the finance ministry to come up with a second tranche of the Special Window for Affordable and Mid-Income Housing (SWAMIH) fund with ₹50,000 corpus in the upcoming Union budget for 2024-2025 fiscal year. In 2019, the Centre had created SWAMIH fund to complete stalled projects.
The size of the fund is ₹15,530 crore and is being managed by SBICAP Ventures, a wholly-owned subsidiary of the State Bank of India. The government recently informed Parliament that as of November 16, 2023, 342 proposals aggregating to ₹37,554 crore have been approved under SWAMIH. This will benefit around 2,18,699 homebuyers and unlock projects worth ₹94,367 crore.
NAREDCO has demanded other budgetary support and relaxations including allowing input tax credit (ITC) under GST and incentives for rental housing in order to achieve the housing-for-all target. In a letter to Union Finance Minister Nirmala Sitharaman, NAREDCO appreciated the Centre's timely interventions and initiatives to bolster the real estate segment and foster positive customer sentiments. NAREDCO said the SWAMIH fund has played a critical role in completing many stuck projects, leading to renewed interest among investors, both foreign and domestic, in the Indian real estate sector.
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