Affordable Rental Housing Complexes (ARHCs), a sub-scheme under Pradhan Mantri Awas Yojana – Urban (PMAY-U) will be implemented by Public/Private bodies either by converting the existing Government funded vacant complexes into ARHCs or by constructing, operating and maintaining ARHCs on their own available vacant land.
This scheme has been formulated in line with the vision of “Aatma Nirbhar Bharat” to create a sustainable ecosystem of affordable rental housing solutions for urban migrants/ poor. It envisages to create a conducive ecosystemfor Public/ Private Entities through policy incentives which will leverage investment for creating affordable rental housing stock.
In order to provide impetus to the Public Private Partnership under this scheme, following incentives/ benefits have been proposedby Government of India and State/UT Governmentsas mentioned below:
- Exemption of Income Tax on any profits and gains derived from operation of ARHCs on similar lines as that of ‘Affordable Housing’ under section 80-IBA of Income Tax Act, 1961;
- Exemption of GST on any profits and gains derived from operation of ARHCs at par with rental services of residential premises vide Notification No. 12 of 2017- Central Tax (Rate) dated 28thJune, 2017;
- Project finance/loan at lower interest rate through concessional window under Affordable Housing Fund (AHF) by Housing Finance Companies (HFCs) and Priority Sector Lending (PSL) by Commercials Banks;
- Provision of “Use Permission” changes for houses on vacant land, if needed;
- 50% additional Floor Area Ratio (FAR)/ Floor Space Index (FSI) free of cost;
- Single window approval of design/ drawings and other statutory approvals within 30 days;
- Necessary trunk infrastructure facilities like road, sanitation services, water, sewerage/septage, drainage, electricity etc. up to the project site without any additional cost to Entity;
- Municipal services such as water supply, electricity, house/ property tax, sewerage/ septage charge etc. for operation of ARHCs will be levied at par with residential projects; and
- Additional grant in the form of Technology Innovation Grant (TIG) is provisioned by Ministry of Housing and Urban Affairs (MoHUA) for using innovative, sustainable, green and disaster-resilient technologies as well as building materials for cost effective, faster and quality construction of ARHCs. TIG of Rs. 60,000/- per house (Single Bedroom), Rs. 1,00,000/- (Double Bedroom) and Rs. 20,000/-per Dormitory Bed will be provided as per Scheme Guidelines.
Beneficiaries for ARHCs will be from Economically Weaker Section (EWS)/ Low Income Group (LIG) who are urban migrants/poor. They include labour, urban poor (street vendors, rickshaw pullers, other service providers etc.), industrial workers and migrants working with market/ trade associations, educational/ health institutions, hospitality sector, long term tourists/ visitors, students or any other persons of such category.
This was informed by Minister of State (I/C) for Housing and Urban Affairs Hardeep Singh Puri in a written reply in the Lok Sabha today.