To support worker’s productivity for manufacturing growth, the Centre will unveil the scheme framework later this week for affordable rental housing for industrial workers under a public-private partnership (PPP) model with likely viability gap funding (VGF) of around 40% of the project cost to the private concessionaires, sources told FE.
Under the scheme, both the states and anchor industries can seek VGF support for projects to provide workers a dignified affordable rental housing close to their workplace.
Also ReadOil India appoints Abhijit Majumder as its CFO
The VGF funding could be around 40% of the project cost, 20% each by the Centre and the project hosting state, for construction, operation and maintenance of affordable housing projects by private entities under PPP. The concession period could be around 30 years.
In the budget for 2024-25, the government announced rental housing with dormitory-type accommodation for industrial workers in PPP mode with VGF support and commitment from anchor industries.
“Industrial workers come from different parts of the country. They usually live in slums without proper electricity, water, cooking gas and other amenities. These complexes will ensure a dignified living environment for migrants/poor close to their workplaces at affordable rates,” a senior official said.
The scheme could also propel new investment opportunities and promote entrepreneurship in the rental housing sector by encouraging private entities to efficiently utilize vacant land available for developing such projects.
Besides large industries, a large number of workers in MSME clusters would likely benefit from affordable rental housing projects.
Also ReadZomato launches safety program to detect delivery partner accidents
The safe and secure accommodation would help provide a healthy living environment, which could contribute to an increase in their productivity levels.
Over the last two decades and more, India has been taking several policy steps intending to increase the share of manufacturing in its gross domestic product (GDP) to 25%. However, the share of the sector in GDP hasn’t risen and has been hovering around 16% since FY12.
» Read More
