With an aim to provide affordable housing to low and middle income class group in India and the recent government's push to Affordable Housing segment, ArthVeda Fund Management on Monday announced raising capital of $250 million (nearly Rs 1,663.19 crore) from Qatar Holding (QH).  

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The Government of India during its Union Budget 2017-18 on February 1 last week announced Infrastructure status to Affordable Housing sector in the country which most real estate developers had demanded from it to boost the housing sector into the country. 

"Mumbai-based ArthVeda Fund Management Private Ltd. (AVFM) today announced that Qatar Holding (QH) has committed to invest $250 million in its affordable low and middle income (LMI) fund, which projects an internal rate of return (IRR) in excess of 18 to 21%," cited ArthVeda Fund Management in a press release.  

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Commenting on the foreign investment into the Affordable Housing segment, ArthVeda Fund Management chief executive officer Bikram Sen, said in a statement, "...the subscription of the entire corpus of its Foreign Direct Investment-compliant (FDI) affordable housing fund by Qatar Holding (QH),was the first substantial foreign inward investment into India’s affordable housing segment spanning low and middle income (LMI) residences, immediately after India’s Union Budget on February 1, 2017." 

Arthveda Fund Management is part of the Wadhawan Global Capital which includes the flagship Dewan Housing Finance Corporation Ltd (DHFL) and it's a global asset management company.

“Arthveda Fund Management's Affordable Housing Fund leverages our entire group’s leadership in the LMI lending segment and applies that to investments in affordable housing. I am very proud that a prestigious institution from Qatar has invested in this fund through Arthveda,” DHFL and ArthVeda Chairman and Managing Director Kapil Wadhawan, said in a statement 

ArthVeda Fund Management has estimated that the country needs to build 19 million urban housing units in the low and mid-income category by 2022 across tier 1, 2 and 3 cities, which requires a capital of $1 trillion.

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