The Union Cabinet has recently greenlit a scheme dedicated to providing affordable rental housing for approximately 3 lakh urban migrants. This initiative is a sub-scheme of the Pradhan Mantri Awas Yojana- Urban, run by the Ministry of Housing and Urban Affairs. Affordable Rental Housing Complexes (ARHCs) are being created as part of the government’s economic response package for the Covid-19 crisis, aligning with the vision of AtmaNirbhar Bharat.
Target Audience of the Scheme
The primary beneficiaries of this scheme will be workers who migrate from rural areas or towns to work in various sectors such as manufacturing, hospitality, health, construction etc.
Key Features of the Scheme
This initiative aims to convert about 1.03 lakh completed yet un-allotted government-funded houses across cities into rental housing complexes. These properties come under existing schemes for the urban poor.
Concession Agreements
These conversions will be carried out through concession agreements that last for 25 years. States and Union Territories will invite bids to select the concessionaires who will refurbish the complexes to ensure they are livable, maintaining rooms and filling infrastructure needs like water, sewer/septage, sanitation, roads, etc. After 25 years, these complexes will return to Urban Local Bodies (ULB) and function independently.
Special Incentives for Entities
Entities that offer to develop ARHCs on their vacant land will be given special incentives. These include concessional loans at priority sector lending rates for 25 years.
Technology Innovation Grant
A budget of Rs. 600 crore has been earmarked for projects using innovative construction technologies under the Technology Innovation Grant.
Significance of the Scheme
The scheme holds potential to create an entirely new ecosystem in urban areas, providing affordable housing in close proximity to places of work, thus reducing unnecessary travel, congestion, and pollution. It will also stimulate a conducive environment for the development of ARHCs on vacant lands, unlocking investment opportunities and fostering entrepreneurship in the rental housing sector.
Job Opportunities
The Covid-19 pandemic has led to a massive reverse migration of workers and urban poor. Investments under ARHCs are anticipated to generate new job opportunities.
Pradhan Mantri Awas Yojana -Urban
Run by the Ministry of Housing and Urban Affairs since 2015, this mission aims to provide affordable housing for the urban poor. The goal is to build 20 million affordable homes by 31st March 2022, offering central assistance to Urban Local Bodies (ULBs) and other implementing agencies via States/UTs.
Eligibility
All statutory towns recognized as per Census 2011, as well as towns notified subsequently, are eligible for coverage under this mission.
Provisions of the Mission
This mission includes in-situ rehabilitation of existing slum dwellers, credit linked subsidy, affordable housing in partnership, and subsidy for beneficiary-led individual house construction/enhancement. This mission also promotes women empowerment by extending ownership of houses to female members or joint owners.
