Lok Sabha Question No. 5434 (UNSTARRED), answered on 2025-04-03
Subject: Rental Housing for Industrial Workers
Ministry: HOUSING AND URBAN AFFAIRS
Asked by: Shri Sribharat Mathukumilli

## GOVERNMENT OF INDIA MINISTRY OF HOUSING AND URBAN AFFAIRS

## LOK SABHA

## UNSTARRED QUESTION NO. 5434

## TO BE ANSWERED ON APRIL 03, 2025

## RENTAL HOUSING FOR INDUSTRIAL WORKERS

## NO. 5434.     SHRI SRIBHARAT MATHUKUMILLI:

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

- (a) whether the dormitory-type rental housing scheme for industrial workers has been implemented and if so, the details thereof, location-wise;
- (b) the details of the funds sanctioned along with the progress made under the  said  scheme,  particularly  in  industrial  clusters  including  those  in Andhra Pradesh;
- (c) whether  the  participation  of  the  private  sector  in  the  said  scheme  has been limited due to regulatory hurdles such as low Floor Area Ratio (FAR) and  Ground  Coverage  Ratio  (GCR)  compared  to  international  standards which restrict both horizontal and vertical expansion and if so, the details thereof;
- (d) the  measures  taken/being  taken  by  the  Government  to  address  these regulatory  hurdles  and  encourage  greater  private-sector  participation  in the said scheme; and
- (e) whether the Government proposes to introduce any policy and regulatory reforms as highlighted by NITI Aayog to integrate workers' accommodation into industrial planning, if  so,  the  details  thereof  and  if not, the reasons therefor?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF HOUSING AND URBAN AFFAIRS (SHRI TOKHAN SAHU)

- (a) to (e): Ministry of Housing and Urban Affairs (MoHUA) launched Affordable Rental Housing Complexes (ARHCs) as a sub-scheme of Pradhan Mantri Awas  Yojana  -  Urban  (PMAY-U)  to  provide  dignified  living  to  urban migrants/poor  including  industrial  workers  near  their  workplace  through single/double  bedroom  units  or  dormitory  beds  in  the  country,  including Andhra Pradesh. This scheme is implemented through two models:
- i. Model-1: Utilizing existing Government funded vacant houses constructed under Jawaharlal Nehru National Urban Renewal Mission (JNNURM) and Rajiv Awas Yojana (RAY) to convert into ARHCs through Public Private Partnership (PPP) or by Public Agencies,

- ii. Model-2: Construction, Operation & Maintenance of ARHCs by Public/Private Entities on their own available vacant land.

Beneficiaries of ARHCs  are  urban  migrants/poor from  Economically Weaker  Section  (EWS)/Low  Income  Group  (LIG).  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.

So  far,  no  proposal  under  ARHCs  has  been  received  from  the  State Government  of  Andhra  Pradesh.  The  State/UT-wise  number  of  ARHCs sanctioned,  completed  under  both  models  along  with  the  details  of Technology Innovation Grant sanctioned under Model-2 by the Ministry in the country are at Annexure.

The  scheme  has  witnessed  active  participation  of  Private  Sector  in Model-2. As per the Scheme  Guidelines,  public/private entities are encouraged  to  invest  in  the  rental  housing  sector  and  develop  ARHCs through various benefits/incentives provided by Governments.

Further, In the Union Budget 2024-25, Government has announced rental housing with dormitory-type accommodation for industrial workers to be facilitated  in  public-private  partnership  (PPP)  mode  with  Viability  Gap Funding (VGF) support and commitment from anchor industries. For this purpose, ₹2,500 crore has been provisioned in 2025 -26 budget.

Further,  learning  from  the  experiences  of  9  years  implementation  of PMAY-U, MoHUA has launched PMAY-U 2.0 'Housing for All' Mission with effect  from  01.09.2024  for  implementation  in  urban  areas  across  the country to construct, purchase and rent a house by eligible beneficiaries at affordable cost through four verticals i.e., Beneficiary Led Construction (BLC), Affordable Housing in Partnership (AHP), Affordable Rental Housing (ARH)  and  Interest  Subsidy  Scheme  (ISS).  The  scheme  guidelines  are available at https://pmay-urban.gov.in/uploads/guidelines/OperationalGuidelines-of-PMAY-U-2.pdf.

ARH vertical of PMAY-U 2.0 aims to create a conducive environment by incentivizing  Public/Private  Entities  to  leverage  investment  for  creating affordable  rental  housing  stock.  It  promotes  the  creation  of  adequate rental  housing  for  eligible  EWS/LIG  beneficiaries  including  industrial workers who do not want to own a house but require housing for short term  basis.  As  per  scheme  guidelines  of  PMAY-U  2.0,  Public/Private Entities  can  construct,  operate  and  maintain  ARH  projects  containing Single/Double bedroom unit or dormitory beds to provide accommodation for eligible beneficiaries.

*****

## A.  State/UT-wise details of the existing Govt. funded vacant houses converted into ARHCs for the beneficiaries under Model-1 of the scheme:

| S. No.   | Name of State/UT   | Name of City   | No. of vacant houses converted into ARHCs   |
|----------|--------------------|----------------|---------------------------------------------|
| 1        | Chandigarh         | Chandigarh     | 2,195                                       |
| 2        | Gujarat            | Surat          | 393                                         |
| 3        | Gujarat            | Ahmedabad      | 1,376                                       |
| 4        | Gujarat            | Rajkot         | 698                                         |
| 5        | Rajasthan          | Chittorgarh    | 480                                         |
| 6        | Jammu &Kashmir     | Jammu          | 336                                         |
| 7        | Uttarakhand        | Lalkuan        | 100                                         |
| 8        | Uttarakhand        | Dehradun       | 70                                          |
| Total    | Total              | Total          | 5,648                                       |

## B. State/UT-wise details of ARHC  units sanctioned and construction completed by Public/Private Entities under Model-2 of the scheme:

| S. No.   | Name of       | Name of       | Name of Entity                                  | Total Units   | Construction completed   |
|----------|---------------|---------------|-------------------------------------------------|---------------|--------------------------|
| S. No.   | State         | City          | Name of Entity                                  | Total Units   | Construction completed   |
| 1        | Tamil Nadu    | Sriperumbudur | SPR City Estates Pvt. Ltd.                      | 18,112        | 6,160                    |
| 2        | Tamil Nadu    | Sriperumbudur | SPR Construction Pvt. Ltd.                      | 3,969         | 3,969                    |
| 3        | Tamil Nadu    | Hosur         | Tata Electronic Pvt. Ltd.                       | 13,500        | 6,576                    |
| 4        | Tamil Nadu    | Chennai       | State Industries Promotion Corporation of Tamil | 18,720        | 18,720                   |
| 5        | Tamil Nadu    | Chennai       | Chennai Petroleum Corporation Ltd.              | 1,040         | -                        |
| 6        | Tamil Nadu    | Chennai       | SPR Construction Pvt. Ltd.                      | 5,045         | -                        |
| 7        | Chhattisgarh  | Raipur        | Indian Oil Corporation Ltd.                     | 2,222         | -                        |
| 8        | Assam         | Kampur Town   | Guwahati Refinery Indian Oil Corporation Ltd.   | 2,222         | -                        |
| 9        | Uttar Pradesh | Prayagraj     | Indian Oil Corporation Ltd.                     | 1,112         | -                        |
| 10       | Gujarat       | Surat         | Mitsumi Housing Pvt. Ltd.                       | 453           | -                        |
| 11       | Telangana     | Nizampet      | Sivani Infra Pvt. Ltd.                          | 14,490        | -                        |
| 12       | Andhra        | Kakinada      | Coastal Developers Pvt. Ltd.                    | 736           | -                        |
| 13       | Pradesh       | Vizianagram   | Coastal Developers Pvt. Ltd.                    | 652           | -                        |
| Total    | Total         | Total         | Total                                           | 82,273        | 35,425                   |