Context

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

About the Scheme

·         It will be a sub-scheme of the Pradhan Mantri Awas Yojana- Urban that is implemented by the Ministry of Housing and Urban Affairs.

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

·         The ARHC scheme will have a two-pronged approach; first, existing vacant government funded housing complexes will be converted into ARHCs through a concession agreement for 25 years.

·         Secondly, special incentives like use permission, 50% additional Floor Area Ratio or Floor Space Index, concessional loan at priority sector lending rates, tax reliefs at par with affordable housing among others will be offered to private and public entities to develop ARHCs on their own available vacant land for 25 years.

·         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.

Background

• Ministry of Housing & Urban Affairs (MoHUA) has initiated an Affordable Rental Housing Complexes (ARHCs) for urban migrants/poor as a sub-scheme under Pradhan Mantri Awas Yojana (Urban).
• The scheme was announced by the Hon’ble Finance Minister on 14 May, 2020.
• This scheme seeks to fulfill the vision of ‘AtmaNirbhar Bharat.

Source: PIB