New Delhi: When the pandemic sparked a large-scale exodus of migrant workers from cities, the central government responded by launching a scheme to provide affordable rental accommodation for the urban poor in July 2020. But three years on, just over 5,600 low-rent apartments have been readied, scattered across eight cities.
The Affordable Rental Housing Complexes (ARHC) scheme aimed to initially convert 83,534 flats, constructed under central government-funded schemes, to provide accommodation to the urban poor and migrant workers. However, only 5,648 flats have been successfully transformed into rental housing, according to information currently available on the online dashboard of the Ministry of Housing and Urban Affairs.
According to the ministry’s response to a Lok Sabha question on 2 February this year, a total of 4,470 flats were allotted to beneficiaries until that time.
The flats ready so far are located in Chandigarh, Jammu, Chittorgarh (Rajasthan), Lalkuan and Dehradun (Uttarakhand), and Surat, Ahmedabad, and Rajkot (Gujarat).
Notably, while over 73 per cent of the over 83,000 earmarked flats are situated in Maharashtra and Delhi, not a single one has been converted into rental accommodation yet.
The flats slated for conversion to flats had initially been sanctioned under the Jawaharlal Nehru National Urban Renewal Mission (JnNURM) and Rajiv Awas Yojana (RAY) during the United Progressive Alliance (UPA) government’s tenure.
Speaking to ThePrint, a senior official from the Ministry of Housing and Urban Affairs said that 7,413 more flats are likely to be converted into rental housing soon.
He also acknowledged that the scheme had not taken off as anticipated.
“The idea is to provide a decent living space at affordable rates. But this component of the scheme didn’t get a good response from the market,” he said.
The ARHC scheme, a sub-scheme under the Pradhan Mantri AWAS Yojana- Urban (PMAY-U), is being implemented through two models: converting existing government-funded vacant houses into affordable flats under a public-private partnership, and constructing, operating, and maintaining ARHCs by private or public entities on their own vacant land.
Ministry officials said there has been a more positive response to the second component.
Also Read: Job loss, rent and exodus — Covid-19 crisis tells us migrants need housing security
No progress in Delhi and Maharashtra
Of the 83,534 flats, Maharashtra and Delhi— both of which saw large-scale reverse migration during the lockdowns—have the greatest share, at 32,345 and 29,112 respectively.
However, none of these flats have been converted into rental accommodations.
The Delhi and central governments are yet to sign the agreement to convert the existing inventory of flats into rental housing.
Speaking on condition of anonymity, a Delhi government official hinted at a bureaucratic deadlock. According to him, the central government, which is funding the scheme, has made it clear that these flats cannot be utilised by the Delhi government for providing housing to slum dwellers under its slum rehabilitation scheme.
The Delhi Urban Shelter Improvement Board (DUSIB) under the Delhi government is responsible for the rehabilitation of slums located on Delhi government land.
Bipin Rai, a member of the DUSIB, said that while they have agreed to sign the agreement with the central government, they have requested the ministry to exempt 18,000 flats and implement the scheme on the remaining accommodations.
“Of the 18,000 flats, the Delhi Development Authority (DDA, which comes under the central government) has asked for 9,000 flats for creating transit accommodation for its slum rehabilitation scheme and we need the remaining 9,000 flats to rehabilitate slums located on Delhi government land. We have already taken money from 9,000 families for rehabilitation. We are hopeful that the matter will be resolved at the earliest,” Rai said.
According to another senior ministry official, the Delhi government is yet to sign the agreement for implementing the rental housing scheme.
ThePrint contacted the ministry spokesperson via phone and message but has yet to receive a response. This report will be updated as and when a response is received.
In the case of Maharashtra, a senior ministry official said: “The draft request for proposal is being prepared and will be soon issued.”
‘Schemes should be planned better’
The Surat Urban Development Authority (SUDA) was among the first few government agencies to implement the ARHC scheme in 2020. The authority converted 393 of its housing inventory into affordable housing for migrant workers employed in nearby industrial areas.
“The authority has signed a contract with a private player for a period of 25 years. The private player will maintain the complex and also collect the rent. The authority will earn a revenue of Rs 18 crore in the next 25 years from this housing complex. The scheme is doing well, as the housing complex is located very close to an industrial area,” said Shalini Agarwal, chairperson of SUDA and Surat Municipal Corporation commissioner.
Agarwal added that the average monthly rent is Rs 2,000-3000.
She told ThePrint that SUDA and the Surat Municipal Corporation will convert an additional 126 and 292 dwelling units respectively into rental housing by year-end.
However, activists highlight that rental accommodations in certain cities— including Delhi—are not strategically located near industrial areas. This, they say, undermines the intended purpose of providing convenient housing options for workers.
“Rental housing might do well if it is close to an industrial area, as workers can live near to the workplaces. But in a place like Delhi, the flats that are to be converted for rental housing are located on the outskirts of the city,” said Shakeel Ahmed, convener of the Basti Suraksha Manch, a housing and land rights network.
“Will a worker spend Rs 100 per day just on commuting between the workplace and rental accommodation?” he asked.
Ahmed added that such schemes should be planned better. “Due to the logjam between the Delhi government and the Centre, it is the people who are suffering,” he said.
Private companies investing in rentals
While the central government is struggling to utilise the existing inventory of flats for rental housing, ministry officials suggested that work is on at a good clip under the second ARHC model, which allows companies to construct rental accommodations in proximity to workplaces, particularly in industrial areas.
The senior ministry official quoted first in this report said that 82,273 units have been approved at 13 locations in Tamil Nadu, Assam, Chhattisgarh, Gujarat, Andhra Pradesh, Telangana, and Uttar Pradesh.
Of this, close to 48,113 are under construction, according to a senior ministry official.
“While no new project is being accepted, we are in the process of evaluating the close to 70 proposals from various public and private sector companies,” said the senior official.
(Edited by Asavari Singh)