PM Modi’s Initiative to Provide Affordable Housing to the Urban Poor

The union government led by the Prime Minister has taken the timely decision to approve the development of Affordable Rental Housing Complexes (AHRCs) for both the migrant labourers and the urban poor as a sub-scheme under Pradhan Mantri Awas Yojana — Urban (PMAY — U).

As per the decision, private sector participation will be enlisted to convert existing vacant houses in government-funded housing complexes into livable accommodations. They will be responsible for repairing or retrofitting it to ensure that all basic facilities like water, sewer/ septage, sanitation are available.

Additionally, the development of new ARHCs on vacant land by public and private entities will be incentivized through special incentives. These incentives include land use permission, 50% additional FAR/FSI, concessional loan at priority sector lending rate, tax reliefs at par with affordable housing, and more.

The focus of the central government through this is very clear — affordable housing facilities to the urban poor, especially new entrants with rural origins: our construction workers, textile workers, rickshaw and taxi drivers, factory workers and more. In the long term, it will not only help in reducing the spread of slums but also indirectly reduce the number of people forced to live in current without access to modern amenities.