Context: The Union Cabinet chaired by the Prime Minister, has given its approval for developing of Affordable Rental Housing Complexes (AHRCs) for urban migrants or poor as a sub-scheme under Pradhan MantriAwasYojana - Urban (PMAY - U). 


  • COVID-19 pandemic has resulted in massive reverse migration of workers or urban poor in the country who come from rural areas or small towns seeking better employment opportunities in urban areas. 
  • Usually, these migrants live in slums, informal or unauthorized colonies or peri-urban areas to save rental charges. 

About the scheme:

  • Under the scheme, an expenditure of Rs 600 Crore is estimated in the form of Technology Innovation Grant which will be released for projects using identified innovative technologies for construction.  
  • The scheme will provide AHRCs by:
  1. Converting existing vacant government funded housing complexes through Concession Agreements for 25 years. 
    1. Concessionaires will make the complexes livable by repair or retrofit. 
    2. States or UTs will select concessionaires through transparent bidding. 
    3. Complexes will revert to ULB after 25 years to restart the next cycle like earlier or run on their own.
  2. Special incentives like use permission, 50?ditional FAR/FSI, concessional loan at priority sector lending rate, tax reliefs at par with affordable housing etc. 
    1. This will be offered to private/ public entities to develop ARHCs on their own available vacant land for 25 years.


  • A large part of the workforce in manufacturing industries, service providers in hospitality, health, domestic/commercial establishments, and construction or other sectors, labourers, students etc. 
  • Approximately, three Lakh beneficiaries will be covered initially under ARHCs.



  • ARHCs will create a new ecosystem in urban areas making housing available at affordable rent close to the place of work. 
  • Investment under ARHCs is expected to create new job opportunities
  • ARHCs will cut down unnecessary travel, congestion and pollution.
  • Government funded vacant housing stock will be converted into ARHCs for economically productive use. 
  • The scheme would create a conducive environment for Entities to develop AHRCs on their own vacant land which would enable new investment opportunities and promote entrepreneurship in the rental housing sector.
  • This scheme seeks to fulfill the vision of AtmaNirbhar Bharat.

Pradhan Mantri Awas Yojana (Urban) 

Ministry of Housing and Urban Affairs

  • Launched in 2015, PMAY(U) intends to provide housing for all in urban areas by year 2022. 
  • The Mission provides Central Assistance to the implementing agencies through States/Union Territories (UTs) and Central Nodal Agencies (CNAs) for providing houses to all eligible families/ beneficiaries against the validated demand for houses for about 1.12 cr. 
  • As per PMAY(U) guidelines, the size of a house for the Economically Weaker Section (EWS) could be upto 30 sq. mt. carpet area, however States/UTs have the flexibility to enhance the size of houses in consultation and approval of the Ministry.
  • In continuation to this Government’s efforts towards empowerment of women from EWS and LIG unlike earlier schemes, PMAY (U) has made a mandatory provision for the female head of the family to be the owner or co-owner of the house under this Mission. 
  • A basket of options is adopted to ensure inclusion of a greater number of people depending on their income, finance and availability of land through following four options. 
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