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Carte blanche to the Affordable Rental Housing from Cabinet

Carte blanche to the Affordable Rental Housing from Cabinet

The COVID-19 pandemic observed a huge number of reverse migrations from labourers and workers. Unlock 2.0 is likely to set the ball rolling for the translocation of labourers back to cities. Addressing the difficulties faced by the migrant workers, Union Cabinet, on July 8, approved the construction of Affordable Rental Housing Complexes (ARHC) for urban and rural migrants to make accommodation accessible at an affordable rent.

The scheme is targeted at labourers, who spend hours on roads walking or cycling to workplaces, risking their lives to cut down the expenses in commute. ARHC is an extension to the Pradhan Mantri Awas Yojana-Urban (PMAY-U) under the Rs 20 lakh crore economic package announced by the Finance Minister Nirmala Sitharaman to combat the pandemic.

Roughly, 3.5 lakh beneficiaries would be covered under the ARHC scheme. Around Rs 600 Crore expenditure is estimated in the form of a Technology Innovation Grant for the identified innovative construction project.

Scheme implementation will be achieved as follows:

  • The transition of the existing vacant government-funded housing complexes into ARHC through “Concession Agreements” for 25 years. The complexes will revert to the urban local bodies after 25 years.
  • The concessionary will be decided upon by the States/UTs by transparent bidding conducted.
  • The concessionaires are required to make the complexes liveable by repairing and provisioning for the sanitation, roads, sewage, and sanitation.
  • Special incentives will be sanctioned, such as use permission, 50 per cent additional floor area ratio, or floor space index. Concessional loans will be allowed at priority sector lending rates and tax relief at affordable housing will be offered to private and public entities to develop ARHCs.

The scheme is expected to make housing available at an affordable rent in the urban areas. This will help in advocating investment opportunities and stimulate entrepreneurship in the rental housing sector.



  • 18, May. Pradhan Mantri Awas Yojana, Urban Poor and COVID-19. 21 May 2020, Link.
  • Cabinet Approves Development of Affordable Rental Housing Complexes for Urban Migrants. Link.
  • PTI share, and Pti. “Cabinet Approval for Development of Affordable Rental Housing Complexes for Urban Migrants, Poor.” Com, cnbctv18.Com, Link.




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