Scheme for Affordable Rental Housing Complexes (ARHCs) | UPSC

Scheme for Affordable Rental Housing Complexes (ARHCs) | UPSC


Scheme for Affordable Rental Housing Complexes (ARHCs)

      WHY IN NEWS:

2.95 Lakh Beneficiaries Envisaged to be Benefitted, Initially

MINISTRY? :- Ministry of Housing & Urban Affairs
SYLLABUS COVERED: GS 3: Scheme : Infrastructure


For PRELIMS remember the aim , features and the implementation strategy of this scheme . This scheme is important . UPSC is fond of Sub- Schemes !

For MAINS we will cover this in upcoming Editorial Hunts . Let us dive in !


A total of 2.95 lakh beneficiaries have been envisaged to be benefitted by this Scheme, initially.


  • Scheme for Affordable Rental Housing Complexes (ARHCs), a sub-scheme under Pradhan Mantri Awas Yojana-Urban (PMAY-U).
  • ARHCs means a listed project with a mix of at-least 40 Dwelling Units (DUs) and Dormitories along with basic civic infrastructure facilities.


  • It has been launched on 31.07.2020 after approval of the Union Cabinet.


  • Large scale reverse migration of urban migrants/ poor due to COVID-19.

Urban migrants stay in slums/informal settlements/ unauthorised colonies/ peri-urban areas to save cost on housing.

  • Non availability of housing close to workplace adversely impacts productivity.
  • Requirement of affordable rental housing rather than ownership.

Scheme for Affordable Rental Housing Complexes (ARHCs) | UPSC


  • An estimated amount of Rs. 600 crore has been envisaged as total outlay of the Scheme till the Mission period of PMAY-U i.e. March 2022.


  • Address the vision of ‘AatmaNirbhar Bharat’ by creating affordable rental housing for urban migrants/ poor

Provide dignified living with necessary civic amenities near their workplace on affordable rent. 

  • Create conducive ecosystem for Public/ Private Entities to leverage investment in rental housing


  • Project proposals under ARHCs will be considered upto March 2022.

Project period is 25 years from the date of commencement of operation as ARHCs. 


  • Beneficiaries for ARHCs will be urban migrants/poor ,labour, street vendors, rickshaw pullers and other service providers.
  • Also industrial workers along with migrants working with market/trade associations, educational/health institutions, students or any other persons of such categories.


  • To be implemented in all Statutory Towns, Notified Planning Areas .

The areas under Special Area/Development Authorities/Industrial Development Authorities will be covered. 

  • ARHCs can be a mix of Single/Double bedroom DUs with living area, kitchen, toilet and bathroom and Dormitory Bed with common kitchen, toilet and bathroom.
  • A maximum of 33% houses with double room permissible in a project.
  • Institutional Rental Mechanism: In-block renting for smooth implementation and sustained income
  • Two-pronged strategy for implementation (Two Models)



  1. Utilizing existing Government funded vacant houses to convert into ARHCs through Public Private Partnership (PPP) or by Public Agencies
  2. Construction, Operation and Maintenance of ARHCs by Public/ Private Entities on their own available vacant land.

Operational Guidelines have been circulated to all States/Union Territories (UTs) for planning and implementation.

  • A draft Memorandum of Agreement (MoA) has been circulated to all States/UTs to sign with MoHUA.
  • A model Request for Proposal (RFP) has been shared with States/UTs for selection of Concessionaire .
  • Through Model-1, approximately 75,000 existing Government funded vacant housing complexes in various cities are targeted to be converted into ARHCs.
  • In Model-2, new construction of 40,000 single/double bedroom houses and 1,80,000 dormitory beds are targeted to be operationalized using innovative and alternate technologies.


Concessionaire will develop existing Government funded vacant housing complexes to be used as ARHCs for a period of 25 years.

  • Houses will be under Repair/Retrofit, Develop, Operate and Transfer (RDOT) on Public Private Partnership (PPP) Mode.
  • Expression of Interest (EoI) has been prepared for shortlisting of Public/Private Entities for construction of ARHCs on their own vacant land.
  • A sustained and focused Information Education and Communication (IEC) strategy for outreach and off take of ARHCs has been prepared.

      IASbhai WINDUP: 


  • Decent living environment close to workplaces at affordable rates.
  • Sustained supply of workforce and increased productivity for Industries and Manufacturing units.
  • Opportunity to convert existing Government funded vacant houses into ARHCs for economically productive use.

Encourage Private/Public Entities to efficiently utilize their vacant land available for developing ARHCs.

  • Propel new investment opportunities and promote entrepreneurship in rental housing sector by creating new job opportunities.
  • Strengthening of Municipal Finances at ULB level.
  • Prevent further proliferation of slums.

Scheme for Affordable Rental Housing Complexes (ARHCs) | UPSC

     SOURCES:THE HINDU & PIB | Scheme for Affordable Rental Housing Complexes (ARHCs) | UPSC


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