In a move to provide affordable housing on rent for migrants and urban poor, the Union Cabinet on Wednesday approved the development of affordable rental housing complexes (AHRC). The complexes will be built under the Pradhan Mantri Awas Yojana (Urban) and it will benefit over 3.5 lakh urban poor. The government estimates Rs 600 crore of expenditure in the form of ''technology innovation grant''.
Under the initiative, existing vacant government funded housing complexes will be converted to ARHCs. Further, special incentives like use permission, 50 per cent additional floor area ratio or floor space index and tax relief will be offered. The complexes will revert to urban local bodies (ULBs) after 25 years to restart the next cycle.
The scheme was announced by the Finance Minister on May 14, 2020 in view of the mass exodus of migrant workers and the poor to back to their home town and villages during the nationwide lockdown. This scheme seeks to fulfill the vision of ‘AtmaNirbhar Bharat’.
A large part of workforce in manufacturing industries, service providers in hospitality, health, domestic/commercial establishments, and construction or other sectors, labourers and students who come from rural areas or small towns seeking better opportunities will be the target beneficiary under ARHCs.
According to the ministry of housing and urban affairs, coronavirus pandemic has resulted in massive reverse migration of workers/ urban poor in the country who come from rural areas or small towns for seeking better employment opportunities in urban areas. Usually, these migrants live in slums, informal/ unauthorized colonies or peri-urban areas to save rental charges. They spend lot of time on roads by walking/ cycling to workplaces, risking their lives to cut on the expenses.
“ARHCs will create new ecosystem in urban areas making housing available at affordable rent close to the place of work. Investment under ARHCs is expected to create new job opportunities. ARHCs will cut down unnecessary travel, congestion and pollution.
The 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,” it said.