BackGovt to encourage FDI in rental housing scheme for urban poor
The aim is to target more than 350,000 beneficiaries who form a large part of the workforce across sectors
PremiumThe central government has decided to extend foreign direct investment (FDI) to affordable rental housing projects, as it prepares to sign agreements with states within a month to start construction, said an official of the Union ministry of housing and urban affairs.
All facilities available for affordable housing projects will also be extended to the rental housing scheme, the official said.
In July, the Union cabinet had approved the scheme to provide affordable rental housing complexes (ARHCs) to urban migrants and the poor, under the Pradhan Mantri Awas Yojana (Urban) scheme.
As part of the initiative, all government-funded housing projects will be converted into ARHCs through concession agreements for 25 years. Special incentives will be offered to private and public entities for developing housing complexes on their own land for 25 years.
The scheme seeks to target more than 350,000 beneficiaries who form a large part of the workforce of manufacturing industries and service providers across sectors.
“FDI is available for other affordable housing projects and should be encouraged in rental housing as well. We are working on getting affordable housing in the harmonized list of infrastructure so that loans are available at low rates. Affordable housing benefits will get transferred to the rental scheme as well," Durga Shanker Mishra, secretary, Union housing and urban affairs ministry, said during an online interaction.
“States will be given the permission to decide the use case of the land according to the master plan", he said.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
