What is the Complex Scheme of Affordable Rental Housing (ARHC)?

In order to cut housing prices, 1 bhk flat on sale in kharghar, a substantial proportion of urban refugees remain in slums, illegal communities and unregulated colonies. In order to minimise commuting costs, they expend a considerable amount of time driving to their offices by biking or cycling. The Government of India therefore felt the need to promote rental housing for them in order to achieve inclusive urban development in order to improve their productivity and to offer them ease of life.

What is the Complex Scheme of Affordable Rental Housing (ARHC)

As a consequence, the Government of India’s Ministry of Housing & Urban Affairs has launched Affordable Rental Residential Buildings (ARHCs), a sub-scheme under the Pradhan Mantri Awas Yojana – Urban (PMAY-U). The key goal of the project is to provide the urban poor, near to their employers in the manufacturing sector and in the non-formal urban economy, with ease of living and access to dignified / planned accommodation.

When did they reveal the scheme?

The scheme, announced as part of the broader economic stimulus package in May 2020, was recently approved by the Cabinet of the Union on 8 July 2020. The device is seen to be a crucial step towards the ‘AtmaNirbhar Bharat Abhiyan’ vision. In addition, this would give the wider target of “Housing for All” an impetus.

Under the ARHC programme, who are the intended beneficiaries?

Initially, the ARHC scheme is projected to help approximately 3 lakh people in particular urban poor people and migrants from the EWS and LIG groups, who come to urban areas in search of better village and small town job opportunities.

This will broadly include labour, street traders, rickshaw pullers and other service providers, and along with those operating in commercial businesses, a large part of the population employed in the industrial manufacturing, hospitality and healthcare sectors. Under the structure, long-term travellers, guests, teachers, etc. will all be protected.

Strives to create a new habitat for refugees and urban poor

The ARHC is a listed project, according to the operating guidelines of the scheme, with a mix of at least 40 housing units and dormitories along with basic civic infrastructural development such as water, sanitation, sewerage/septage, roads, electricity and the required social/commercial infrastructure for urban migrants/poor people of economically weaker sectors (EWS)/Low Income Category (LIG) groups.

Under this programme, the government aims to devise a healthy environment as a big pro-poor initiative in which employees will obtain rental housing at reasonable rates, which will increase their quality of life and also reduce excessive travel related to work. This will also instil a sense of confidence in them and allow them, in a crisis situation like COVID-19, not to flee to their home towns.

ARHCs Deployment Templates

The Government, as notified by the State/UT Government, will implement the scheme across all legislative cities, notified planning areas, development authorities, special area development authorities, industrial development authorities and any other area. All developments under the ARHCs shall, for a minimum duration of 25 years, be used solely for rental accommodation.

What is the Complex Scheme of Affordable Rental Housing (ARHC)

The government has outlined two models that are explained below for the introduction of ARHCs:

1) Model 1 – Transforming empty houses subsidised by the current government into ARHCs by a public private partnership (PPP) or public entities.

Currently, under numerous former and current housing schemes such as the Jawaharlal Nehru National Urban Regeneration Mission (JNNURM), Rajiv Awas Yojana (RAY), PMAY-U and other state-run housing schemes, there are approximately 1.2 lakh completed, non-allotted and government-funded housing units across towns.

Completed units will be turned into rental housing developments in such systems. For a span of 25 years, the government would emphasise the conversion through concession agreements, and states/union territories would pick the concessionaires through open bidding.

It will be the duty of the chosen concessionaires to make these complexes liveable by performing repair/retrofitting works, building repairs and repairing drainage issues related to water, sewage, sanitation, highways, etc.

Dealers can also ensure that vital social amenities and commercial services are built, including health centres, community centres, restaurants, grocery stores, medical stores, ATMs, etc.

This housing complexes will be passed to Municipal Local Bodies after 25 years of completion, which will begin the next stage, either in the same manner or on their own.

2) Model 2 – Construction, activity and management by public/private agencies of ARHCs on their own abandoned property open to them.

Under this model, the government will promote, by providing special incentives and rewards, private and public agencies to build ARHCs on their own available unused land. A substantial portion of idle vacant land is open to several businesses, trade unions, manufacturing firms, educational & health agencies, planning authorities, public sector enterprises, etc.

These institutions will create, manage and retain ARHCs for 25 years on their vacant land themselves. They can use ARHCs to provide housing for their own employees and to satisfy the requirements of neighbouring organisations.

Concessional project finance, income tax & GST deductions for any benefit and profits from ARHCs, technological advancement grant (TIG) for the use of advanced technology, use permit improvements, 50 percent additional cost-free Floor Area Ratio (FAR) or Floor Space Index (FSI), single window clearance (30 days), concessions will be included in a package of benefits to encourage the construction of such housing complexes.

The Government is planning the initial projected budget in the form of a technology advancement grant of INR 600 crore to be allocated for projects using established advanced construction technologies.

What are the advantages required of ARHCs?

Efficient introduction of ARHCs would provide migrant workers and urban poor with ease of living and would definitely improve their lifestyle.

  • They will get good housing at a reasonable rate in urban areas. These complexes, most specifically, will be close to their offices.
  • It is intended to inspire the divisions of EWS and LIG, give them a sense of security and prepare the unprivileged part of society for the new normal in a way.
  • It will also guarantee the constant provision of human capital for factories and processing facilities, etc.
  • The scheme will cause the already constructed government sponsored houses which are currently empty to be used productively.
  • ARHCs are expected to propel new construction in the rental housing market and drive potential job growth. The framework allows public and private actors to build ARHCs on their own vacant ground.


1 BHK Flat On Sell in Sector – 20 Kharghar NaviMumbai

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