Housing Scheme : Slow Progress in Affordable Rental Housing Complexes Construction
GOVERNMENT OF INDIA
MINISTRY OF HOUSING AND URBAN AFFAIRS
RAJYA SABHA
UNSTARRED QUESTION NO. 865
ANSWERED ON 08/12/2025
SLOW PROGRESS IN CONSTRUCTION OF AFFORDABLE RENTAL HOUSING COMPLEXES
865. SHRI S NIRANJAN REDDY:
Will the Minister of HOUSING AND URBAN AFFAIRS be pleased to state:
(a) whether it is a fact that the increase in sanction and construction of Affordable Rental Housing Complexes (ARHCs) has been slower from FY 2024 to FY 2025;
(b) whether it is a fact that only 36,450 ARHCs out of total 83,298 sanctioned complexes have been constructed till now:
(c) if so, the reasons for such a lack of progress in the construction of ARHCs; and
(d) the steps being taken by Government to expedite construction of sanctioned complexes?
ANSWER
THE MINISTER OF STATE OF THE MINISTRY OF HOUSING AND URBAN AFFAIRS
(SHRI TOKHAN SAHU)
(a) to (d): 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) in July 2020 to address the housing need faced by migrant workers, urban poor, and informal sector labourers during the COVID period. This scheme has been implemented through two models:
- Model-1: Converting existing Government funded vacant houses into ARHC through PPP mode or by Public Agencies,
- Model-2: Construct, Operate and Maintain rental housing by Private/Public Entities for urban poor, working women, employees of Industries, Industrial Estates, Institutions and other eligible Economically Weaker Section (EWS)/Low Income Group (LIG) families.
Based on the proposals submitted by States/Union Territories (UTs), MoHUA has approved proposals for construction of 83,298 new ARHC units in several States with Technology Innovation Grant (TIG) of ₹175.95 crore under Model-2. Out of this, construction of 53,318 new ARHC units have been started after obtaining statutory approvals, of which 36,450 ARHC units have been completed and occupied by the beneficiaries showcasing rapid on-ground implementation, proactive participation from Public/Private Entities. The Ministry is continuously following up with concerned States/UTs to ensure that all sanctioned ARHC projects receive the required statutory approvals at the earliest. The Ministry also conducts regular review with the States/UTs and field visits on progress of the scheme for ensuring completion and renting out the sanctioned ARHCs within the scheme period.
Further, based on the learnings from the experiences of implementation of PMAY-U, MoHUA has revamped the scheme and 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 1 crore additional eligible beneficiaries at affordable cost in next five years. Based on the learnings of ARHCs, a dedicated vertical of Affordable Rental Housing (ARH) has been provisioned under PMAY-U 2.0. The basic purpose of ARH vertical is to promote construction of affordable rental housing close to the workplaces of the intended beneficiaries. The ARH vertical aims to create a conducive environment for construction of adequate rental housing for eligible beneficiaries including urban migrants/industrial workers/working women/students/urban poor etc. By promoting housing near employment hubs and workplaces, the scheme aims to reduce travel time and expenses, improve productivity and quality of life and create more inclusive and sustainable urban communities. The scheme guidelines of PMAY-U 2.0 are available at https://pmay-urban.gov.in/uploads/guidelines/Operational-Guidelines-of- PMAY-U-2.pdf.
An Expression of Interest (EoI) has been issued by the Ministry for submission of project proposals for construction of new ARH units by Public/Private Entities. The last date of submission of proposal is 31.12.2025.
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