About: Affordable Rental Housing Complexes

  • The Affordable Rental Housing Complexes (ARHC) scheme has been launched under the Pradhan Mantri Awas Yojana-Urban (PMAY-U) as part of Atma Nirbhar Bharat Abhiyan.

  • Thus, it is a sub-scheme under the Pradhan Mantri Awas Yojana (Urban) with an estimated expenditure of around Rs 600 crore.

    • PMAY-U is a housing scheme introduced by the Indian Government in 2015,with the aim to provide affordable housing to the urban poor by 2022.

  • It was approved by the Cabinet in July 2020.

  • The scheme aims to cover nearly 3 lakh beneficiaries initially.

Rationale of the Scheme:

  • Urban migrants stay in slums/ informal settlements/ unauthorised colonies/ peri-urban areas to save cost on housing. They need decent rental housing at affordable rate at their work sites.

  • The scheme will provide ease of living to urban migrants/ poor in industrial sector as well as in non-formal urban economy. Beneficiaries for ARHCs will mainly be urban migrants/ poor from EWS/ LIG categories.

  • Overall, the scheme will look to provide dignified and affordable living spaces to varied groups of urban migrants and poor including:

    • Industrial & construction workers

    • Migrants working with market associations, educational and health institutions, hospitality sector

    • Students

    • Long term tourists or visitors 

The ARHC scheme will have a two-pronged approach:

  • Using Exiting Housing Stock (JnNURM/RAY) as ARHCs:

    • Existing vacant government funded housing complexes will be converted into ARHCs through a concession agreement for 25 years.

    • According to internal ministry data, there are 1.2 lakh such government houses available built under the erstwhile schemes, including Jawaharlal Nehru National Urban Renewal Mission (JNNURM), Rajiv Awas Yojana (RAY) and housing schemes of the state governments.

    • Of these Maharashtra has the maximum number of accommodations available at 35,000 and Delhi 30,000 houses.

  • Incentivising Private/ Public Agencies for construction of ARHCs:

    • Under this model, ARHCs will be constructed, operated and maintained by Public or Private Entities on their own available vacant land for a period of 25 years.

    • Special incentives like use permission, 50% additional Floor Area Ratio (FAR) or Floor Space Index (FSI), concessional loan at priority sector lending rates, tax reliefs etc. will be offered to these entities for developing affordable housing facilities to migrants/ poor.

Expected Benefits:

  • It will provide dignified and affordable living spaces for urban migrants/ poor in need.

  • ARHCs will create a new ecosystem in urban areas making housing available at affordable rent close to places of work and will cut down unnecessary travel, congestion and pollution.

  • The investment under ARHCs is expected to create new job opportunities.

  • The scheme will also help real estate developers retain labour forces on their sites.