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14 April, 2021
In a major boost to the real estate sector in Uttar Pradesh, the state government would be launching a scheme to offer rental housing at affordable rates to poor people residing in its cities. Previously, the state cabinet passed a proposal and approved the same in this regard. This decision comes at a time when the real estate industry in India is recovering from stagnation. With the move coming from the state government of UP, the cities are likely to witnessed fresh momentum in real estate growth.
This program would be known as the ARHC (Affordable Rental Housing and Complexes) scheme. Under this program, the government has planned to benefit the poor labourers, urban migrants and people coming from the economically weaker sections. This group of low-income individuals also include factory workers, people associated with educational institutes, hospitality, etc. Besides, students would also benefit from the new housing scheme in UP.
Individuals belonging to SC, ST and OBC would gain preference in this regard. Working women, widows and other minorities would also gain an upper hand to the privileges of the scheme. The government of India has launched the program through the Ministry of Housing and Urban Affairs, as a part of the campaign termed ‘self-reliant India’. The program will be deployed under the PMAY (Urban) scheme. It is expected to boost the participation of public and private institutions for the operation, construction and maintenance of housing complexes on rental mechanism. This would significantly benefit the poor people and urban migrants.
This new scheme in UP would be rolled out in two models. Under the first model, vacant houses that are funded by the state or central houses would be converted to an ARHC by means of an agreement. The second model involves ARHC to be built, maintained and operated by private and public entities on vacant lands that are available. The authorities also stated that they would not accept any proposal without carrying out the necessary technical examinations.
As per the statement, the scheme would encompass projects that would be used for rental accommodation of the poor people only. This scheme will be in place for at least 25 years. In case the properties are used for purposes apart from rent, the competent authority will take necessary action against the agency.