Parliament Question: Implementation challenges of ARHC Scheme

GOVERNMENT OF INDIA MINISTRY OF HOUSING AND URBAN AFFAIRS RAJYA SABHA UNSTARRED QUESTION NO. 244 ANSWERED ON 02/02/2026 IMPLEMENTATION CHALLENGES OF ARHC SCHEME 244. SHRI RAGHAV CHADHA: Will the Minister of HOUSING AND URBAN AFFAIRS be pleased to state: (a) details on the number of Affordable Rental Housing Complexes (ARHC) made operational so far during the last five years, year-wise, State-wise; (b) the number of migrant and informal workers who have benefited and been housed under the scheme; (c) whether there is low participation by States and urban local bodies despite policy incentives and if so, the reasons therefor; (d) whether Government has reviewed implementation challenges during the last three years and if so, the details thereof; and (e) the manner in which Government plans to increase participation of States and urban local bodies and improve effectiveness, of the scheme details thereof? 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) in July 2020 to address the housing need faced by migrant workers, urban poor, and informal sector labourers. This scheme has been implemented through two models: i. Model-1: Converting existing Government funded vacant houses into ARHC through PPP mode or by Public Agencies, ii. 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 initiatives taken by various States/Union Territories (UTs) and Public/Private agencies, a total of 5,783 Government funded vacant houses have been converted into ARHCs, so far under Model-1. Additionally, proposals for converting 7,413 existing Government funded vacant houses into ARHC units have been processed in the States of Gujarat, Himachal Pradesh, Haryana, Madhya Pradesh and Rajasthan. Further, based on the proposals submitted by States/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, 36,450 ARHC units have been completed on ground, showcasing rapid on-ground implementation, proactive participation from Public/Private Entities. The State/UT-wise number of ARHCs sanctioned and completed ...2/--2- under both models is at Annexure. 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. 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 the 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. Through this vertical, enabling eco-system is created by incentivizing Public/Private Entities to leverage investment for creating affordable rental housing stock. These include fast-tracked, single-window approvals through a green-channel process; 50% additional FAR with free TDR; exemptions from land conversion and statutory charges; and parity of municipal service charges with residential projects to further encourage participation and reduce construction costs. Further, increased TIG of ₹5,000 per sqm. of carpet area has been provisioned to incentivize public and private entities to build new ARH units. *****Annexure referred in reply to RS USQ No. 244 due for answer on 02.02.2026 A. State/UT-wise details of the existing Government 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 Surat 528 3 Gujarat Ahmedabad 1,376 4 Rajkot 698 5 Rajasthan Chittorgarh 480 6 Jammu & Kashmir Jammu 336 7 Lalkuan 100 Uttarakhand 8 Dehradun 70 Total 5,783 B. State/UT-wise details of ARHC units sanctioned and construction completed by Public/Private Entities under Model-2 of the scheme: S. Name of Name of Entity Total Construction No. State City Units completed 1 Sriperumbudur SPR City Estates Pvt. Ltd. 18,112 6,160 2 Sriperumbudur, SPR Construction Pvt. Ltd. 4,994 4,994 3 Hosur Tata Electronic Pvt. Ltd. 13,500 6,576 Tamil Nadu 4 Chennai State Industries Promotion 18,720 18,720 Corporation of Tamil Nadu 5 Chennai Chennai Petroleum 1,040 - Corporation Ltd. 6 Chennai SPR Construction Pvt. Ltd. 5,045 - 7 Chhattisgarh Raipur Indian Oil Corporation Ltd. 2,222 - 8 Assam Kampur Town Guwahati Refinery Indian Oil 2,222 - Corporation Ltd. 9 Uttar Prayagraj Indian Oil Corporation Ltd. 1,112 - Pradesh 10 Gujarat Surat Mitsumi Housing Pvt. Ltd. 453 - 11 Telangana Nizampet Sivani Infra Pvt. Ltd. 14,490 - 12 Kakinada Coastal Developers Pvt. Ltd. 736 - Andhra Pradesh 13 Vizianagram Coastal Developers Pvt. Ltd. 652 - Total 83,298 36,450