8/23/2020 Cabinet nod for development of affordable rental housing complexes for urban migrants, poor - The Economic

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English Edition | 23 August, 2020, 03:22 PM IST | E-Paper

Cabinet nod for development of a ordable

rental housing complexes for urban
migrants, poor
Synopsis
Affordable Rental Housing Complexes is a sub-scheme under the Pradhan Mantri Awas Yojana-Urban. The concessionaire will make the
complexes livable by repair or retro t and maintenance of rooms and lling up infrastructure gaps such as water, sewer, sanitation, road
and related work.

MUMBAI | NEW DELHI: The Union cabinet on Wednesday gave its approval to
the recently announced scheme to provide budget rental accommodation to poor
and migrant workers in urban areas. This is estimated to bene t more than
350,000 people.

As per the A ordable Rental Housing Comple es (ARHCs) scheme – a sub-

scheme under the Pradhan Mantri Awas Yojna (PMAY) – existing vacant
government-funded housing complexes across key cities will be converted into
Cabinet nod for development of Affordable
Rental Housing Complexes for urban migrants,
poor: Prakash Javadekar
ARHCs, and o ered to concessionaires for 25 years to rent out the units to urban
poor and migrant workers. State and civic bodies will select concessionaire
through bidding, according to guidelines issued by the housing and urban development ministry.

The government will also o er special incentives to private and public entities to develop such housing complexes on
their own available vacant land for 25 years under the scheme.

These incentives include use permission, 50% additional oor space index (FSI), concessional loans at priority sector
lending rate and tax reliefs at par with a ordable housing, the ministry said in a statement.

Concession agreement for ARHCs will include undertaking repair, retro ts, maintenance of rooms, and xing water,
sewer and sanitation problems.

The government has kept aside Rs 600 crore in the form of technology innovation grant that would to be released for
projects using innovative technologies for construction under the scheme.

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8/23/2020 Cabinet nod for development of affordable rental housing complexes for urban migrants, poor - The Economic Times

Developers said the scheme will not only help in providing a ordable housing to migrants but also lead to optimum use
of government funded vacant houses.

“Investment under ARHCs has potential to create new job opportunities,” said Niranjan Hiranandani, National President
of developers’ body Naredco. “The scheme creates an environment conducive for developing AHRCs on their own vacant
land, which will create new investment opportunities and promote entrepreneurship in the rental housing sector.”

They also expect the scheme to help resolve the issue of project delays caused by labourers’ shortage.

“Once the rental housing facility for migrant labourers is created, the projects will not get delayed as there will be no
shortage of labourers,” said RK Arora, chairman of real estate rm Supertech. “For developers also, it’s a business
opportunity as they can exploit bene ts on additional FAR and nancing.”

The target bene ciary under this scheme will be workforce in manufacturing, service providers in hospitality, health,
domestic and commercial establishments, labourers and students who migrate from rural areas or small towns to cities.

The complexes will be returned to government bodies after 25 years to restart the next cycle or to be run on their own.

In Video: Cabinet nod for development of Affordable Rental Housing Complexes for urban
migrants, poor: Prakash Javadekar

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