Focus: GS-III Indian Economy
Why in news?
- Ministry of Housing and Urban Affairs (MoHUA) released a ARHCs Knowledge Pack (AKP).
- Recently the Union Cabinet approved Affordable Rental Housing Complexes (ARHCs) as a sub scheme under Pradhan Mantri Awas Yojana (Urban) to provide ease of living to urban migrants/poor.
- A mobile application of CREDAI – Awaas App and an e-Commerce Portal of NAREDCO – Housing for All was released which will leverage technology and provide benefits to home buyers in changing market practices by providing effective solutions.
ARHCs will be implemented through two Models:
Model-1: Utilizing existing Government funded vacant houses to convert into ARHCs through Public Private Partnership or by public agencies for a period of 25 years.
- The scheme provides an opportunity for all States/UTs to convert their existing vacant houses constructed under various Central/ State Government schemes into ARHCs.
- A model RFP has been shared with all States for customisation and issuance by them to select a concessionaire.
Model-2: Construction, Operation and Maintenance of ARHCs by Public/ Private Entities on their own available vacant land for a period of 25 years.
- A large portion of available vacant land is lying unutilized with various Industries, Trade Associations, Manufacturing Companies, Educational/ Health Institutions, Development Authorities, Housing Boards, Central/ State Public Sector Undertakings (PSUs) and other such Entities. By providing with appropriate policy support, enabling suitable provisions and incentives, these available vacant lands can be utilised effectively for developing affordable housing facilities to migrants/ poor.
- Further, MoHUA will issue Expression of Interest (EoI) for shortlisting of Entities by ULBs to Construct, Operate and Maintain ARHCs on their own available vacant land.
Incentives/Benefits proposed for Private/Public Entities
To make this a lucrative and viable business opportunity for Entities, Central Govt. will provide Concessional Project finance under Affordable Housing Fund (AHF) & Priority Sector Lending (PSL), Exemption in Income Tax and GST and Technology Innovation Grant for promotion of innovative technologies in ARHCs.