General Studies ISchemesUrbanization

Affordable Rental Housing Complexes Scheme (AHRC)

Ministry of Housing & Urban Affairs 


The latest data of Affordable Rental Housing Complexes Scheme is release by government of India

About AHRC:

  • Affordable Rental Housing Complexes Scheme (AHRC) is a sub-scheme under PM Awas Yojana – Urban.
  • It has been launched on 31.07.2020 after approval of the Union Cabinet
  • Under the scheme, existing vacant government-funded housing complexes will be converted in ARHCs through Concession Agreements for 25 years.
  • The concessionaire will make the complexes livable by repair/retrofit and maintenance of rooms and filling up infrastructure gaps like water, sewer/ septage, sanitation, road etc.
  • States/UTs will select concessionaire through transparent bidding.
  • Complexes will revert to ULB after 25 years to restart next cycle like earlier or run on their own.
  • Special incentives like 50% additional FAR/FSI [floor area ratio and floor space index] permissionconcessional loan at priority sector lending rate, tax reliefs at par with affordable housing etc. will be offered to private/public entities.
  • Rs 600 crore will be granted for technology innovation for projects using innovative technologies for construction under the scheme.
  • Target beneficiary -Workforce in manufacturing, service providers in hospitality, health, domestic and commercial establishments, labourers and students who migrate from rural areas or small towns to cities.
  • The ARHC scheme will be implemented through two models:
  • Utilizing existing Government funded vacant houses to convert into ARHCs through Public Private Partnership or by Public Agencies
  • Construction, Operation and Maintenance of ARHCs by Public/ Private Entities on their own vacant land

Objectives of ARHC:

  • To address the vision of ‘AtmaNirbhar Bharat Abhiyan’ significantly by creating a sustainable ecosystem of affordable rental housing solutions for urban migrants/poor.
  • To achieve the overall objective of “Housing for All” encompassing the need for affordable rental housing for urban migrants/poor.
  • Also, to create a conducive environment by incentivizing Public/Private Entities to leverage investment in rental housing.

Beneficiaries of the scheme

  • 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. who come from rural areas or small towns seeking better opportunities will be the target beneficiary under ARHCs.

Benefits of AHRCs

  • Usually, these migrants live in slums, informal/ unauthorized colonies or peri-urban areas to save rental charges.
  • They spend a lot of time on roads by walking/ cycling to workplaces, risking their lives to cut on the expenses.
  • 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.


The PMAY- Urban Programme launched by the Ministry of Housing and Urban Poverty Alleviation (MoHUPA), in Mission mode envisions provision of Housing for All by 2022. The Mission seeks to address the housing requirement of urban poor including slum dwellers through following programme verticals:

  • Slum rehabilitation of Slum Dwellers with participation of private developers using land as a resource
  • Promotion of Affordable Housing for weaker section through credit linked subsidy
  • Affordable Housing in Partnership with Public & Private sectors
  • Subsidy for beneficiary-led individual house construction /enhancement.


  • In pursuance to the goal – Housing for all by 2022, the rural housing scheme Indira Awas Yojana has been revamped to Pradhan Mantri Awaas Yojana – Gramin and approved during March 2016.
  • Under the scheme, financial assistance is provided for construction of a pucca house to all houseless and households living in dilapidated houses.
  • It is proposed that one crore households would be provided assistance for construction of pucca house under the project during the period from 2016-17 to 2018-19.
  • The scheme would be implemented in rural areas throughout India except for Delhi and Chandigarh. The cost of houses would be shared between the Centre and States.

Source: PIB

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