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POLICY REVIEW
and secondly by Construction, includes housing and employs is a lucrative option for
Operation and Maintenance about 12 % of the workforce entrepreneurs to venture into
of Affordable Rental Housing (OECD Economic Surveys 2019 , the Rental Housing business.
Complexes by Public/ Private 2019). Therefore, the investment Positive Impact on the Urban
Entities on their own available made under PMAY (U) not only Poor
vacant land as a Central Sector provides affordable houses to
Scheme. (Ministry of Housing & the poor to achieve the goal The ARHC promotes labour
Urban Affairs, 2020) of ‘Housing for All’ under and social mobility to the urban
The Affordable Rental Housing ownership or rental schemes but poor or migrant. It assures
healthy living conditions which
Complexes (ARHC) scheme also triggers a multiplier effect include infrastructural hygiene,
apart from impacting the urban on the overall economy. access to better food, ventilated
poor in a positive manner The government commits accommodations, thermal
hosts a few opportunities and to provide the basic needs comfort and mental peace, in
advantages to the government of survival of food, clothing a planned area. It gives the
and private developers. As all and shelter. The scheme aids opportunity for the tenant to
stakeholders are incentivised the national aspiration that is choose their accommodation
under the scheme, the urban fulfilled as committed to be closest to their workplace. It
areas and the country is likely to accomplished by the government reduces commute time and
thrive (figure-9). in the given tenure to provide their dependence on different
Figure 9 Stakeholders in the ARHC Scheme shelter to every citizen of the transport modes. This increases
country. Model – I encourages their work efficiency and gives
converting existing Government them more time to build a socially
funded vacant houses in cities sustainable environment around
into ARHCs through Concession them. It caters to the social needs
Agreement for 25 years (Ministry and aspirations of the urban
of Housing & Urban Affairs, poor by providing recreational
2020). This model permits for the and community open spaces,
vacant housing available with crèche, gender needs, etc.
the government to be utilised. It
ensures national money will be City Benefits
put to good use. As all aspects of living, working
Opportunities for Private and recreating are in close
(Source: Author) proximity, the number of trips of
Developers
Advantages for Government for live – work- play gets reduced
The Model II- under the ARHC considerably for the urban poor.
Urban Areas and cities are the encourages Construction, It reduces the pressure on the
epicentres of economic growth Operation and Maintenance city infrastructure, specially
which contribute significantly to of ARHCs by Private/ Public required for movement through
the Indian economy. According Entities on their own available different modes of transport.
to the Economic Survey 2019- vacant land (Ministry of Housing The scheme gives an opportunity
2020, over 60 % of India’s current & Urban Affairs, 2020). This has to predict, plan and design for
GDP comes from the cities and created an investment options an appropriate estimation of
towns. The construction sector with a business opportunity requirements and optimised
accounts for 8.2 % of GDP which for private developers. It utilisation of city’s trunk
50 HUDCO-HSMI Publication
