Implementation Mechanism 22 January 2021

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Implementation Period? Till PMAY(U) Mission period (March 2022)

Implemented Where? All Statutory Towns, Notified Planning Areas and areas

under Special Area/ Development Authorities / Industrial Development Authorities.

Models of Implementation

Model-1

Converting Existing

Vacant Government

Funded Houses into

ARHCs under Public

Private Partnership

mode or by Public Agencies.

Model-2

Construction, Operation

and Maintenance of

ARHCs by Private/

Public/ Private Entities

on their own Available

Vacant Land.

Process Flow - Model-1

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Creation of Inventory of Vacant Houses

Fixation of Rent based on Local Survey

Issuance of Customized RFP for Selection of Concessionaire

Selection of Concessionaire Based on Maximum Premium

Repair/Retrofit/Gap filling of Infrastructure by Concessionaire

Provide Incentives/Benefits to Concessionaire as per Guideline

Operation and Maintenance by Concessionaire for 25 Years

Hand over Houses to Implementing Agency after Contract Period

Preparation of Model RFP

Circulation with State/UT/ULB/ Parastatals Circulation with State/UT/ULB/ Parastatals MoHUA

Customisation &

Uploading the RFP

on E-procure Portal

Customisation &

Uploading the RFP

on E-procure Portal

Pre-Bid Meeting

Pre-Bid Meeting

Reply to

Clarifications/

Queries

Reply to

Clarifications/

Queries

Submission of Bids

(Tech. & Fin.)

Creation of Inventory

& estimation of cost

Creation of Inventory

& estimation of cost

Fixation of Affordable

Rent through Survey

Fixation of Affordable

Rent through Survey

Opening of Financial Bids

Selection of Concessionaire Selection of Concessionaire

Approval from

Comp. Auth. Approval from

Comp. Auth.

Signing of contract & handover existing

vacant houses

Signing of contract & handover existing

vacant houses

Approval from SLSMC & Appraise CSMC

Approval from SLSMC & Appraise CSMC

Listing & uploaded on ARHC Portal

Listing & uploaded on ARHC Portal

Start RDOT & operate for 25 Years

Start RDOT & operate for 25 Years

Opening of Technical Bids

Submission of TEC Report

Submission of TEC Report

Approval Approval

Technically Qualified

Technically Qualified

Bids Rejected

If No If Yes

RFP Process Flow (Model-1)

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Process Flow- Model-2

Identification of vacant land by Entities Identification of vacant land by Entities

Submit Application against EoI on ARHCs website

Shortlisting of Eligible Entities by ULBs

Submission of DPR by Shortlisted Entities to ULBs

Recommendation of ULB forwarded to State for Listing

Approval by SLSMC and Listing for availing incentives

Construction and Operation for 25 Years

State to forward proposal to BMTPC for appraisal

BMTPC to

appraise & recommend for CSMC approval

Proposal with alternative &

innovative Technology

Technical

Assistance & project

monitoring by BMTPC

CSMC approval & release of TIG

to Entities through BMTPC

MoHUA to Issue EOI Pre-Bid Meeting

Online submission of application

Download &

Scrutiny of applications by

ULB

Shortlisting of

Entities by ULB

Shortlisted Entity

to submit DPR to ULB

Statutory approvals of

Projects

Project using Convention Technology

Entity to Implement ARHCs project, Operate &

Maintain for 25 Years

SLSMC Approval

& Listing of Project as ARHC for

incentives to Entities

State/UT to notify ULB for

implementation

Recommendation to State/UT for

Listing

EoI Process Flow (Model-2)

With TIG

Without TIG

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Preparation of model RFP and circulate to States/UTs for further

suitable customization selection of Concessionaire by ULB for

Repair/Retrofit, Develop, Operate and Transfer (RDOT) ARHCs.

Issuance of Expression of Interest (EoI) for shortlisting of Entities

by ULBs to Construct, Operate and Maintain ARHCs on their own

available vacant land.

Developing ARHC website for documentation, knowledge sharing

and management of projects.

Central Sanctioning & Monitoring Committee (CSMC) approval of

projects requiring TIG & Monitoring.

Role of MoHUA

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Role of Private/ Public Developers-Model 1 Estimation of investment requirement to make existing Government

funded vacant houses livable for converting them as ARHCs

Selection based on bidder offering maximum positive premium to ULBs

or bidder requiring lowest negative premium

Participate in the bidding process for selection of Concessionaire by ULBs

Repair/retrofit/develop the vacant houses along with infrastructure (gap

filling) to make it livable

Tie-up with local factories/institutions/associations for in-block allotment

for sustained occupancy and revenue

Sharing of revenue with ULB as per agreement

Operate & Maintain for 25 years and hand over after contract period

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Role of Private/ Public Developers-Model 2

Identify vacant land parcel for construction of ARHCs

Construct, operate and maintain ARHCs on own vacant land for 25 years

Single ARHC project to have at least 40 Dwelling Units (single/double

bedroom) or equivalent number of dormitories

Project may consist of a mix of DUs (30/60 sqm) and dormitories (10 sqm)

as per local requirement

A maximum of 33% houses with double room permissible in a project

Tie-up with local factories/institutions/associations for in-block allotment

for sustained occupancy and revenue

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Role of Private/ Public Developers-Model 2

Upload application in response to Expression of Interest (EoI) on ARHC

website: arhc.mhua.gov.in to be shortlisted by respective ULBs

After shortlisting submit DPR to ULB and upload a copy on ARHC website

Seek all statutory approvals of the project (including Use

permission/additional FAR), if required

Fix initial affordable rent in consultation with ULB to be increased

biannually by 8%

Permissible commercial built up space may be sold

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Expectations from States/UTs

Signing of MoA with MoHUA (25 States/UTs already signed)

Designate State Mission Director for PMAY(U) as nodal officer for ARHCs

Engage a Procurement Expert at State/UT level

Consultations/ Dialogue with:

Concerned Depts., Public Agencies including State Public Sector

Undertakings having available vacant land for ARHCs

State Parastatals, Municipal Commissioners, District

Collectors/Magistrates etc. for their active role in scheme

implementation

State Chapters of CREDAI & NAREDCO, Real Estate

Developers/Builders for their active participation

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Expectations from States/UTs (Cont.)

Issue necessary directions for Listing of eligible projects & extending

incentives/ benefits to Entities & Concessionaires and as provisioned in

the ARHCs

Project inventory & cost estimation of existing Government funded

vacant houses for converting them as ARHCs

Fixation of initial affordable rent based on local survey, prior to

issuance of RFP

Issuance of customized RFP and selection of Concessionaire

Project Monitoring through State Level Sanctioning and Monitoring

Committee (SLSMC)

Sustained and focused IEC for outreach and off take of ARHCs

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Proposed Incentives/ Benefits

Concessional Project Finance under

Affordable Housing Fund (AHF) &

Priority Sector Lending (PSL)

Exemption in Income Tax & GST on

any profit & gains from ARHCs

Technology Innovation Grant (TIG)

for promoting use of innovative

technology

Use Permission changes, if needed

50% additional FAR/FSI, free of cost

Single window approval of ARHC

projects (within 30 days)

Trunk infrastructure upto the

project site

Municipal charges at par with

residential property

Central Govt. States/UTs/ULBs/Parastatals

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Funding Pattern

Model- 1

Investment by Concessionaire

VGF from Central Assistance

released to States/ UTs for

JnNURM/ RAY projects, if

needed

Approximately 75,000 Govt.

funded existing houses to be

converted as ARHCs, initially

Model-2

Investment by Entities

TIG of Rs. 1,00000/ for double

bedroom

Rs. 60,000/- for single

bedroom &

Rs. 20,000/- per Dormitory

Bed, for projects using

innovative technology

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Expected Outcomes

Decent living environment for urban migrant/ poor close to their

workplaces at affordable rates

Sustained supply of workforce and increased productivity for Industries

Opportunity to convert existing Government funded vacant houses into

ARHCs for economically productive use

Private/Public Entities can efficiently utilize their available vacant

land for developing ARHCs

Propel new investment opportunities and promote entrepreneurship in

rental housing sector.

Strengthening of Municipal Finances at ULB level

Prevent the further proliferation of slums

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Thanks

www.arhc.mohua.gov.in