Cabinet approves development of rental housing for urban migrants and poor1 min read . Updated: 08 Jul 2020, 04:03 PM IST
Expenditure of ₹600 crore is estimated in the form of technology, innovation grant for this new scheme under PMAY
Union Cabinet today approved the development of Affordable Rental Housing Complexes (AHRCs) for urban migrants and poor as a sub-scheme under Pradhan Mantri Awas Yojana – Urban, said I&B Minister, Prakash Javadekar.
Under the new scheme, existing vacant government-funded houses will be converted to AHRCs. "Special incentives like use permission, 50% additional floor area ration or floor space index, tax reliefs to be offered," Javadekar said during the press briefing.
Moreover, expenditure of ₹600 crore is estimated in the form of technology, innovation grant for this new scheme under PMAY and initially, 3 lakh beneficiaries to be covered initially.
Complexes will revert to ULB after 25 years to restart next cycle.
Approximately, three lakh beneficiaries will be covered initially under ARHCs
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," the cabinet said in a statement.
Government funded vacant housing stock will be converted into ARHCs for economically productive use. The scheme would create a conducive environment for Entities to develop AHRCs on their own vacant land which will enable new investment opportunities and promote entrepreneurship in rental housing sector.
Apart from this, the Cabinet today approved the extension of the EPF support for business and workers for three more months under its Pradhan Mantri Garib Kalyan Package. The government had also reduced EPF contribution for business entity and workers to 10% from 12% till 30 August.
It also approved capital infusion of ₹12,450 crore for three Public Sector General Insurance Companies – Oriental Insurance Company Ltd, National Insurance Company Ltd & United India Insurance Company Ltd (including ₹2500 cr infused in FY 2019-20).