The government’s Rs 125 billion Alternate Investment Fund (AIF), which offers last-mile funding to stuck housing projects, has disbursed funds to two housing projects. And, it reportedly expects to fully deploy its money in two years. As reported, the investments are expected to kick-start the much-awaited investment cycle in the country’s residential real estate and trigger private investor interest in housing projects. About 4.58 lakh housing units are estimated to be facing delayed deliveries across 1,509 stalled projects. Alternative asset manager SBICAP Ventures, a wholly owned subsidiary of SBI Capital Markets, has been entrusted by the government to manage the fund to help kick-start stalled projects across the country.Reports indicate that more than 300 real estate developers across the country have approached the fund for financial support for their projects. From the 300, 200 builders are known to have submitted preliminary information; and fund managers have sought further information from 100 of these 200. As reported, about 60 projects have not met the necessary criteria for getting financial support; however, about 20 per cent applications are under active consideration.Two projects are known to have already got its final approval for disbursement by the fund. These include one project in Mumbai and one in Bengaluru. These projects, comprising 1,800 houses stuck in various stages of completion, are expected to provide homes to about 9,000 people. Besides, another eight projects are known to have received preliminary approvals, with another 40 under active consideration.The fund achieved its first closure worth Rs 105.30 billion on December 6, 2019, within a month of the approval by the government in November. It is reported that adequate capital is available for active deployment over the one to two years, considering the first closing at a significantly large amount. Furthermore, additional capital will reportedly be raised from domestic sources as well as sovereign and multilateral international institutions.SBICAP Ventures will reportedly be committing the first over Rs 105 billion in the next one to one-and-a-half years. It may also concurrently start raising additional funds. However, as reported, SBICAP Ventures’ focus will be first on deploying the funds and pushing for completion of projects.Photo: For representational purpose