Lok Sabha Question No. 1988 (UNSTARRED), answered on 2020-09-22
Subject: ARHC Scheme
Ministry: HOUSING AND URBAN AFFAIRS
Asked by: Uttam Kumar Nalamada Reddy

## MINISTRY OF HOUSING AND URBAN AFFAIRS

## GOVERNMENT OF INDIA LOK SABHA

## UNSTARRED QUESTION NO. 1988 TO BE ANSWERED ON SEPTEMBER 22, 2020

## ARHC SCHEME

SHRI UTTAM KUMAR REDDY NALAMADA:

Will the Minister of HOUSING AND URBAN AFFAIRS be pleased to state:

- (a) the number of houses covered and the number of migrants to be benefitted from the Affordable Rental Housing Complex (ARHC) scheme city-wise;
- (b) whether the Government has prioritised cities of high economic importance and migrant footprints;
- (c) If so, the details of cities that have been prioritized and if not, the reasons therefor;
- (d) the  steps taken by the Government to ensure time bound implementation of scheme for priority cities;
- (e) whether the Government has conducted any feasibility studies of the scheme, given the rising NPAs, slowdown in economy and high land prices in urban areas of economic importance, and if sO, the details thereof;
- the steps taken to attract developers and make these projects
- financially viable for them; and
- (g) whether the Government has set a city-wise target of migrants to be benefitted and if SO, the details thereof?

## ANSWER

THE MINISER OF STATE (INDEPENDENT CHARGE) OF THE

MINISTRY OF HOUSING AND URBAN AFFAIRS (SHRI HARDEEP SINGH PURI)

- (a): At present no Affordable Rental Housing Complex (ARHC) has been made operational anywhere in the country-StateslUnion Territories (UTs) are currently identifying such projects in cities which are readily available for   converting into ARHCs after   making them livable-

A total of 2.95 Iakh beneficiaries have been envisaged to be benefitted by this scheme initially- Through Model-1, approximately 75,000 existing Government funded vacant housing complexes in various cities are targeted to be converted into ARHCs: In Model-2, new construction of40,000   singlel  double bedroom houses and 1,80,000 dormitory beds are targeted to be operationalized using innovative and alternate technologies:

- (b) to (d): Projects under ARHCs will be applicable for consideration and funding till Pradhan Mantri Awas Yojana Urban (PMAY-U) Mission AlI statesUTs are prioritizing cities of high economic importance and migrant footprints for implementation of this Scheme-

In order to ensure time bound implementation of scheme, following actions have been taken by MoHUA:

- Operational Guidelines of ARHCs along with other implementation framework have been circulated to all Statesl UTs for planning and implementation: E-copy of the guidelines has been uploaded on the websites of ARHC, PMAY-U and MoHUA
- A draft Memorandum of Agreement (MoA) has been circulated to all StateslUTs to sign with MoHUA: So far, 20 Statesl UTs have signed the MoA with MoHUA and the Ministry is pursuing with
- remaining States/UTs to sign it at the earliest:
- A model Request for Proposal (RFP) has been shared with StateslUTs for selection of Concessionaire to develop existing Government funded vacant housing complexes to be used as ARHCs for a period of 25 years under Repair/Retrofit, Develop, Operate and Transfer (RDOT) on Public Private Partnership (PPP) Mode
- iv. Expression of Interest (Eol) has been prepared for shortlisting Public/Private Entities for construction of ARHCs on their own vacant land:
- sustained and focused Information Education and Communication (IEC) strategy for outreach and off take of ARHCs has been prepared: A whiteboard animation on ARHCs along with various brochures, leaflets and other communication materials have been designed and shared with the stakeholders.

- (e): Mlo HUA has conducted a comprehensive feasibility analysis of this Scheme through a series of consultations with concerned Central Ministries/Departments, StateslUTs and other stakeholders from Privatel Public Sector and launched ARHCs scheme for urban migrantsl poor as a sub-scheme under PMAY-U. These ARHCs are driven necessities to provide dignified living to urban migrantslpoor: The complexes will be repairedlretrofittedlconstructed by Publicl Private bodies using their own resources. This scheme has been envisaged to create a conducive ecosystem by  incentivizing Publicl Private Entities to leverage investment for creating affordable rental housing stock thereby supporting the overall economic development: by
- In order to encourage Private players to participate in this scheme
- and make the projects financially viable, following incentives benefits have been provisioned by Government of India and StatelUT Governments have been proposed as 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;
- from residential Tax (Rate)
- Exemption of GST on any profits and gains derived operation of ARHCs at par with services of premises, vide Notification No. 12 of 2017- Central dated 28th June 2017;
- Project financelloan 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;
- iv Provision of (Use Permission" changes for houses vacant
- on land; if needed;
- 50% additional Floor Index (FSI)
- Area free of cost;
- Single window approval of designl drawings and other statutory approvals within 30 days;
- vii Necessary trunk infrastructure facilities like road, sanitation services, water, seweragelseptage, drainage, electricity etc: up
- to the project site without any additional cost to Entity;

- viii. Municipal services such as water supply,   electricity, housel property tax, seweragel septage   charge etc. for  operation ARHCs will be levied at par with residential projects; and
2. ix Additional grant in the form of Technology Innovation Grant (TIG) is provisioned by MoHUA for using innovative, sustainable, green and disaster-resilient technologies as well as building materials for cost effective, faster and quality construction of ARHCs. The TIG of Rs: 60,000/- per house (Single Bedroom), Rs: 1,00,000/- per house (Double Bedroom) and will
3. be provided as per the Scheme Guidelines:
4. Sir- StateslUTs are currently under process of identifying such projects in cities which are readily available for converting into ARHCs after making them livable: No,

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- (g):