“The Uttar Pradesh government has launched new rental housing schemes under the Affordable Rental Housing Complexes (ARHC) to support urban migrants and the poor. Aimed at providing dignified living spaces, these initiatives repurpose vacant government-funded houses and encourage private sector participation. Despite progress, challenges like low uptake and implementation hurdles persist, with only a fraction of targeted units allotted.”
UP’s Affordable Housing Push for Migrant Workers
The Uttar Pradesh government has taken significant steps to address the housing needs of urban migrants and economically weaker sections through its Affordable Rental Housing Complexes (ARHC) scheme, a sub-initiative under the central government’s Pradhan Mantri Awas Yojana-Urban (PMAY-U). Launched in 2020 in response to the mass exodus of migrant workers during the COVID-19 lockdown, the scheme aims to provide affordable and dignified rental accommodations near workplaces for laborers, factory workers, hospitality staff, and students.
In 2021, the UP cabinet, under Chief Minister Yogi Adityanath, approved the ARHC scheme, targeting urban migrants, economically weaker sections (EWS), and low-income groups (LIG). The initiative prioritizes marginalized communities, including Scheduled Castes, Scheduled Tribes, Other Backward Classes, widows, working women, and persons with disabilities, ensuring inclusive access to housing. The state has identified 5,232 vacant government-funded houses for conversion into ARHCs, primarily built under earlier schemes like the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) and Rajiv Awas Yojana (RAY). However, as of December 2024, none of these units in UP have been converted or allotted, highlighting significant implementation challenges.
The ARHC scheme operates on two models. The first involves repurposing existing vacant government housing through public-private partnerships (PPPs) or public agencies for a 25-year concession period. The second model encourages public and private entities to construct, operate, and maintain new ARHCs on available vacant land. Incentives such as a 50% additional Floor Area Ratio (FAR), tax exemptions, and concessional loans under the Affordable Housing Fund (AHF) are offered to attract private developers. Monthly rents are set between Rs 1,000 and Rs 3,000, making the units affordable for low-income migrants who often reside in slums or informal settlements to minimize living costs.
Despite its ambitious goals, the scheme’s progress in UP has been slow. Nationally, only 5,648 of the 83,534 identified vacant houses have been allotted to migrants as of December 2024, representing less than 7% of the target. In UP, the lack of conversion of identified units underscores issues like bureaucratic delays, low private sector interest due to modest returns, and stringent documentation requirements that deter informal workers. Migrant workers, who often lack urban domicile documents, face barriers in accessing these formal rentals, pushing them back to substandard informal housing.
The state government is working to address these hurdles by streamlining processes through single-window clearances and offering technology innovation grants to developers using sustainable construction methods. Additionally, the scheme aims to reduce transportation costs for migrants by providing housing close to industrial and urban work hubs, enhancing productivity and quality of life. For instance, cities like Noida and Greater Noida, which host large migrant populations working in manufacturing and construction, stand to benefit significantly if the scheme is effectively implemented.
The central government’s broader vision of ‘Housing for All by 2022’ continues to guide these efforts, with UP playing a critical role due to its large migrant population. During the 2020 lockdown, an estimated 10.6 million migrants left Indian cities, many from UP, highlighting the urgent need for affordable urban housing. Experts suggest that complementary measures, such as rental vouchers similar to those used in Chile and Brazil, could enhance the scheme’s reach by providing flexible housing options for informal workers.
As UP pushes forward, the success of the ARHC scheme will depend on overcoming implementation bottlenecks, increasing private sector participation, and ensuring that rental accommodations are both affordable and accessible to the state’s most vulnerable populations. The initiative represents a step toward inclusive urban development, but its impact hinges on effective execution and sustained policy support.
Disclaimer: This article is based on recent news reports, government announcements, and analyses from sources like The Economic Times, Hindustan Times, and Reuters. Information is accurate as of August 2025, but implementation details may evolve. Readers are advised to verify specifics through official government portals like arhc.mohua.gov.in or pmaymis.gov.in.