The operational guidelines issued by the housing ministry for affordable rental housing complex (ARHC) scheme has suggested that monthly rental of Rs 3,000 could be financially viable in the case of renting out of government-funded flats in Delhi, which are largely in its outskirts and Rs 3,000 in Faridabad, Agra, Ludhiana and Ernakulam.
In order to make construction and operation of ARHCs a lucrative business model for investors, the guidelines say all private and public entities including land owners implementing this scheme for urban poor and migrants will get income tax and GST exemption on the profit they will make from this venture.
To begin with, 1.08 lakh completed houses will be rented out.
As per the guidelines, the private and public entities will also get loans at lower interest rates through concessional window under Affordable Housing Fund by housing finance companies and priority sector lending by commercial banks.
Moreover, state and local governments concerned shall follow a single window system for approvals within 30 days, after which the proposed project will be considered as deemed approved for construction. They would also provide necessary trunk infrastructure facilities such as roads, sanitation services, water, sewerage, drainage and electricity up to site without any additional cost to the private or government entity.
Projects only with at least 40 dwelling units or 120 dormitory beds will be eligible to get the benefit under ARHC. To ensure these projects are primarily meant for poor, there will be 33% cap on the number of double bedrooms in any project.
The housing ministry will provide grants of Rs 1 lakh per dwelling unit in case of double bedroom, Rs 60000 for single bedroom and Rs 20,000 per dormitory bed, if the listed entities adopt new technology for sustainable, resource efficient and disaster resilient construction.
“This landmark decision will ensure poor and migrant workers get a decent place for living,” said joint secretary (housing), Amrit Abhijat.