“Uttar Pradesh’s new rental housing schemes aim to provide affordable, dignified homes for migrant workers under the Affordable Rental Housing Complexes (ARHC) initiative. Targeting urban poor and laborers, the state leverages existing government housing and public-private partnerships to address housing shortages, though challenges like slow implementation and low uptake persist.”
UP’s Push for Affordable Migrant Housing
Uttar Pradesh, a major hub for migrant workers, has rolled out initiatives under the Affordable Rental Housing Complexes (ARHC) scheme to address the acute housing shortage faced by urban migrants and the poor. Launched in 2020 as a sub-scheme of the Pradhan Mantri Awas Yojana-Urban (PMAY-U), the ARHC aims to provide dignified, affordable rental housing near workplaces for laborers, factory workers, hospitality staff, and students. In UP, the scheme targets economically weaker sections (EWS) and low-income groups (LIG), with a focus on marginalized communities like Scheduled Castes, Scheduled Tribes, Other Backward Classes, widows, and minorities.
As of December 2024, only 5,648 of the 83,534 identified vacant government-funded houses have been allotted nationwide, with Uttar Pradesh lagging significantly, having converted none of its 5,232 identified vacant flats. Despite this, the state cabinet, under Chief Minister Yogi Adityanath, approved the ARHC scheme in March 2021, emphasizing a two-pronged approach: repurposing existing government housing and encouraging private entities to build and operate rental complexes on vacant land. These complexes are designed to operate under a 25-year concession agreement, ensuring long-term affordability.
The scheme’s slow progress in UP mirrors national challenges. States like Tamil Nadu have sanctioned 82,273 ARHC units, with 35,425 completed, while UP struggles with bureaucratic delays and lack of private sector engagement. The Ministry of Housing and Urban Affairs estimates that 10.6 million migrant workers left cities during the 2020 lockdown, highlighting the urgent need for such initiatives. In UP, migrants often live in slums or informal settlements, spending significant time and money commuting to workplaces.
To incentivize participation, the government offers developers tax breaks, 50% additional Floor Area Ratio (FAR), and subsidized loans. However, high land costs and low rental returns deter private developers, as noted by Anuj Puri of ANAROCK. Experts suggest that UP could adopt global models, like Singapore’s high-density worker dormitories or Chile’s rental voucher system, to boost scalability.
The state’s industrial hubs, such as Noida and Greater Noida, are critical for migrant workers contributing to sectors like manufacturing and construction. Yet, only a fraction of the 41.4 million inter-state migrants, who account for 10% of India’s GDP, have access to formal housing. Budget 2025 discussions highlight the need for policy reforms, including relaxed FAR norms and rental subsidies, to make UP’s schemes more effective.
Disclaimer: This article is based on information sourced from government statements, news reports from Hindustan Times, The Economic Times, Times of India, Reuters, and other credible outlets, as well as real-time data available up to September 2025. The All India Press does not independently verify the claims made by external sources.