The Union Finance Minister, Nirmala Sitharaman announced an affordable rental housing scheme for migrant workers under Public-Private Partnership (PPP) model funded by means of a concessionaire.
The Union Finance Minister, Nirmala Sitharaman outlined an affordable rental housing scheme aimed at helping the migrant labourers, farmers and the urban poor whose livelihood has been threatened by the COVID-19 lockdown. The scheme was revealed as part of the announcement of the second tranche of the Rs 20 lakh crore stimulus package and will be under a Public-Private Partnership (PPP), funded via a concessionaire.
As part of the scheme, Government-funded housing complexes in cities would be converted into Affordable Rental Housing Complexes (ARHC) to provide ease of living for the urban poor at reasonable rental rates.
The Government plans to provide incentives to private industries and institutions to develop affordable housing on their private lands. Various agencies of the Centre and State governments will also be encouraged to develop such housing complexes.
The real estate experts have hailed the move. Some of the industry reactions are –
Niranjan Hiranandani, President, NAREDCO
The rental housing scheme under PMAY offers a business opportunity to the private sector, to build more rental housing stock through the PPP mode, with a concessionaire arrangement. The Finance Minister focused on moves that will improve working conditions, making life easier and more conducive for workers.
Anshuman Magazine, Chairman & CEO – CBRE India, South East Asia, Middle East & Africa
The announcement on rural infrastructure and affordable rental accommodations for urban and migrant workers under PPP partnership will open newer avenues for the construction industry.
Surendra Hiranandani, Chairman and Managing Director, House of Hiranandani
The announcement to build rental housing complexes via public-private partnership will stimulate demand for raw materials, generate employment and thus provide a thrust to affordable housing. Overall today’s announcement will certainly alleviate stress to a certain extent from the sector. The sector is hopeful for a liquidity push which has been a prime concern for the sector.
Kamal Khetan, Chairman and Managing Director, Sunteck Realty Ltd
The allocation planned for providing basic rental accommodation under the PPP model is certainly a better way to improve the quality of living for urban migrants and poor in our big cities. Though details are not available, we believe these projects can boost construction activities and investments in real estate assets across India’s cities.
Ashok Mohanani, Chairman, EKTA World and President-Elect, NAREDCO-Maharashtra
Incentivizing the state government agencies and converting government funding houses into affordable rental housing complexes will build trust and give a reason for migrants to stay back adding a feather to completion of ‘Housing For All 2022’. This stimulus package as a whole will act in a positive note if urgent implementation and planning are followed impacting relevant beneficiaries for all businesses.
Ravindra Sudhalkar, CEO, Reliance Home Finance
The Ministry’s announcement to build rental housing complexes via public-private partnership will go a long way in resolving housing issues for migrant workers and urban poor who currently live in pitiable conditions. The concessions promised to manufacturing units and industries to take up such projects and also allowing them to follow the BOT model similar to road projects, for constructing these rented dwellings will encourage many new players to enter the affordable housing segment.
Nakul Himatsingka, Managing Director, Ideal Group
The affordable rental scheme looks promising, and we shall eagerly await to read the details for the same and see if there is a business model in it for builders.
Bhairav Dalal, Partner and Leader Real Estate Tax, PwC India
Affordable rental housing under PPP model sounds great as a concept. The execution and implementation roadmap will be key to its success. This will definitely require a relook at the current real estate regulatory framework and the interplay between the State and Central legislation.