In the aftermath of the biggest migration crisis witnessed by the country following the COVID-19-induced lockdown, the Union cabinet has approved a scheme to develop affordable rental housing to the workers and the poor in the urban areas.
These rental units will be made available to the workers so that they stay in clean and developed housing colonies instead of slums. This scheme, initially announced by Finance Minister Nirmala Sitharaman during the economic package, was approved by Prime Minister Narendra Modi-led cabinet on Wednesday.
“The existing vacant government-funded housing complexes will be converted in affordable rental housing complexes (ARHCs) through concession agreements for 25 years. The concessionaire to be selected through transparent bidding process will make the complexes livable by repairs and maintenance of rooms and filling up infrastructure gaps like water, sewer/septage, sanitation, road,” the official statement said.
Information and Broadcasting Minister Prakash Javadekar said currently 1.08 lakh flats—one bedroom, kitchen—in 107 cities are already constructed. These will be made available to workers by the urban local bodies.
He added that those who are willing to build more such houses, including those in private and state governments, will be given relaxations like 50 per cent additional FAR/FSI, concessional loan at priority sector lending rate, tax relief at par with affordable housing will be offered to develop ARHCs on their own available vacant land for 25 years.
Another over one lakh flats will be built in the first phase, and even dormitories will be built which can accommodate up to six workers to accommodate 1.33 lakh people. This scheme makes provisions for over 3.5 lakh persons.
The ARHCs will aim to create a new ecosystem in urban areas making housing available at affordable rent close to the place of work. ARHCs will cut down unnecessary travel, congestion and pollution as otherwise workers were forced to stay in slums and often had to travel long distance to reach their place of work. Under this scheme, the private entities will be able to develop rental housing complexes near the places of work.
“A large part of workforce in manufacturing industries, service providers in hospitality, health, domestic/commercial establishments, and construction or other sectors, labourers, students, who come from rural areas or small towns seeking better opportunities will be the target beneficiary under ARHCs,” an official said.
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.
