Home >News >India >Incentives to be given for construction of affordable rental housing complexes
The scheme aims to target more than 350,000 beneficiaries. (HT)
The scheme aims to target more than 350,000 beneficiaries. (HT)

Incentives to be given for construction of affordable rental housing complexes

The scheme under Pradhan Mantri Awas Yojana - Urban has been taken up to provide dignified and affordable living spaces to varied groups of urban migrants and poor including industrial & construction workers, migrants working with market associations, educational and health institutions, hospitality sector, long term tourists or visitors and students

Incentives and benefits including free floor area ratio, concessional project finance, trunk infrastructure facilities free of cost will be a part of the Affordable Rental Housing Complexes (ARHCs) for urban migrants and poor, union minister for housing and urban affairs Hardeep Singh Puri said on Wednesday.

Puri launched a portal for the scheme and released the guidelines and guidebook. The scheme under Pradhan Mantri Awas Yojana - Urban has been taken up to provide dignified and affordable living spaces to varied groups of urban migrants and poor including industrial & construction workers, migrants working with market associations, educational and health institutions, hospitality sector, long term tourists or visitors and students.

“To make this a lucrative and viable business opportunity for entities, central government will provide concessional project finance under affordable housing fund & priority sector lending, exemption in Income Tax and GST and Technology Innovation Grant for promotion of innovative technologies in ARHCs. Further, State/UT Govt. will provide Use Permission changes, 50% additional FAR/FSI free of cost, Single Window Approval within 30 days, Trunk Infrastructure facility and Municipal charges at par with residential property," a statement by the ministry said.

The scheme was announced by the central government in May, received approval from the cabinet in July. This comes at a time when the extended lockdown to control the spread of covid-19 saw a large number of migrant workers head back to their villages. The scheme aims to target more than 350,000 beneficiaries.

“We already have 24 states on board. I will be writing a letter of appreciation to these states for coming on board so quickly for this scheme. The implementation of this scheme has been accelerated due to the covid-19 crisis," Puri said, while addressing a digital press conference.

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