Focus: GS-II Social Justice, GS-III Indian Economy
Why in news?
The Union Cabinet has given its approval for developing of Affordable Rental Housing Complexes (AHRCs) for urban migrants / poor as a sub-scheme under Pradhan Mantri Awas Yojana – Urban (PMAY – U).
Details of how the sub-scheme will be accomplished
- Existing vacant government funded housing complexes will be converted in ARHCs through Concession Agreements which are awarded by States and UTs through transparent bidding.
- Special incentives, like reduced loan rates, will be offered to private/ public entities to develop ARHCs on their own available vacant land.
- 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).
- A large part of workforce in manufacturing industries, service providers in hospitality, health, domestic/commercial establishments, and construction or other sectors, labourers, students etc. who come from rural areas or small towns seeking better opportunities will be the target beneficiary under ARHCs.
- 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.
Pradhan Mantri Awas Yojana – Urban (PMAY-U)
- PMAY-U was launched by the Ministry of Housing and Urban Poverty Alleviation (MoHUPA).
- It envisions provision of Housing for All by 2022, when the Nation completes 75 years of its Independence.
- Beneficiaries include Economically weaker section (EWS), low-income groups (LIGs) and Middle-Income Groups (MIGs).
- “Housing for All” Mission for urban area is being implemented during 2015-2022 and this Mission will provide central assistance to implementing agencies through States and UTs for providing houses to all eligible families/beneficiaries by 2022.
- Mission will be implemented as Centrally Sponsored Scheme (CSS) except for the component of credit linked subsidy which will be implemented as a Central Sector Scheme.
The Mission seeks to address the housing requirement of urban poor including slum dwellers through following programme verticals:
- Slum rehabilitation of Slum Dwellers with participation of private developers using land as a resource
- Promotion of Affordable Housing for weaker section through credit linked subsidy
- Affordable Housing in Partnership with Public & Private sectors
- Subsidy for beneficiary-led individual house construction /enhancement.
CLSS (Credit Linked Subsidy Scheme) is a component of PMAY under which, not only economically weaker sections, but also middle-income groups can avail of home loans at reduced EMIs.