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News Analysis


Affordable Rental Housing Complexes for Urban Migrants

  • 09 Jul 2020
  • 4 min read

Why in News

Recently, the Union Cabinet has approved a scheme for providing affordable rental housing to about 3 lakh urban migrants.

Key Points

  • Target Beneficiaries: Workers who come from rural areas or towns to work in manufacturing, hospitality, health, construction, etc.
  • Features:
    • Affordable Rental Housing: About 1.03 lakh completed government-funded houses across cities that are yet to be allotted to beneficiaries (Urban poor) under existing schemes would be converted into the rental housing complexes.
    • Concession Agreements: The conversion will be done through concession agreements for 25 years.
      • The States and Union Territories would invite bids to select concessionaires.
      • Concessionaires will make the complexes livable by repair/retrofit and maintenance of rooms and filling up infrastructure gaps like water, sewer/ septage, sanitation, road etc.
      • Complexes will revert to Urban Local Bodies (ULB) after 25 years to run on their own.
    • Special Incentives to Entities: Special incentives like concessional loan at priority sector lending rate, etc. will be offered to private/ public entities to develop ARHCs on their own available vacant land for 25 years.
    • Technology Innovation Grant: Under it an expenditure of Rs. 600 crore would be provided for projects using identified innovative technologies for construction.
  • Significance:
    • Creation of New Ecosystem: It will create a new ecosystem in urban areas making housing available at affordable rent close to the place of work. Hence, cutting down unnecessary travel, congestion and pollution.
    • Investment Opportunities: It would create a conducive environment for entities to develop AHRCs on their own vacant land which would enable new investment opportunities and promote entrepreneurship in the rental housing sector.
    • Employment: Covid-19 pandemic has resulted in massive reverse migration of workers/ urban poor. Investment under ARHCs is expected to create new job opportunities.

Pradhan Mantri Awas Yojana -Urban

  • It was launched in 2015 by the Ministry of Housing and Urban Affairs, in which affordable housing will be provided to the urban poor with a target of building 20 million affordable houses by 31st March 2022.
  • It provides central assistance to Urban Local Bodies (ULBs) and other implementing agencies through States/UTs.
  • Eligibility: All statutory towns as per Census 2011 and towns notified subsequently would be eligible for coverage under the Mission.
  • Provisions:
    • In-situ Rehabilitation of existing slum dwellers using land as a resource through private participation.
    • Credit Linked Subsidy.
    • Affordable Housing in Partnership.
    • Subsidy for Beneficiary-led individual house construction/enhancement.
  • The mission promotes women empowerment by providing the ownership of houses in the name of female members or in joint name.

Source: PIB

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