The Union Cabinet on Wednesday approved the development of Affordable Rental Housing Complexes for urban migrants and poor as a sub-scheme under the Pradhan Mantri Awas Yojana - Urban. As part of the scheme, existing vacant government funded housing complexes will be converted in Affordable Rental Housing Complexes through Concession Agreements for 25 years.
The scheme was announced by Finance Minister Nirmala Sitharaman on May 14. This scheme seeks to fulfill the vision of 'AtmaNirbhar Bharat.
Concessionaire will make the complexes livable by repair/retrofit and maintenance of rooms and filling up infrastructure gaps like water, sewer/ septage, sanitation, road etc. States/UTs will select concessionaire through transparent bidding. Complexes will revert to ULB after 25 years to restart next cycle like earlier or run on their own.
Special incentives like use permission, 50% additional FAR/FSI, concessional loan at priority sector lending rate, tax reliefs at par with affordable housing etc. will be offered to private/ public entities to develop ARHCs on their own available vacant land for 25 years.
A large part of workforce in manufacturing industries, service providers in hospitality, health, domestic/commercial establishments, and construction or other sectors, labourers, students etc. who come from rural areas or small towns seeking better opportunities will be the target beneficiary under ARHCs.
An expenditure of Rs 600 Crore is estimated in the form of Technology Innovation Grant which will be released for projects using identified innovative technologies for construction. Approximately,three Lakh beneficiaries will be covered initially under ARHCs.
The government said that the Affordable Rental Housing Complexes will create new ecosystem in urban areas making housing available at affordable rent close to the place of work. Investment under Affordable Rental Housing Complexes is expected to create new job opportunities. ARHCs will cut down unnecessary travel, congestion and pollution.
Government funded vacant housing stock will be converted into ARHCs for economically productive use. The scheme would create a conducive environment for Entities to develop AHRCs on their own vacant land which will enable new investment opportunities and promote entrepreneurship in rental housing sector.