NEW DELHI: In a move to help financing the affordable housing segment, the Finance Ministry has included 'Affordable Rental Housing Complex' (ARHC) in a harmonised master list of infrastructure sub-sectors.
"Affordable Rental Housing Complex is included in the Harmonized Master List of Infrastructure sub-sectors by insertion of a new item in the category of Social and Commercial Infrastructure," a notification issued by Economic Affairs Department of the Finance Ministry said.
The move will help in getting more investment for the projects and will help these projects to secure long-term finance from bank and financial institutions at easier terms. ARHC was announced under part of Aatmanirbhar Bharat Abhiyaan announced in May this year.
This means that foreign investors can either invest in such projects directly or through alternate investment funds (AIFs) or infrastructure investment trusts (In-vITS) that will open funding options for such project. Also, income from investments in rental housing for lower income groups will be exempted from income tax.
"Affordable rental housing complex" has been defined as as a project to be used for rental purpose only for urban migrant or poor, economically weaker sections or lower income group, for a minimum period of 25 years with basic civic infrastructure facilities such as water, sanitation, sewage or septage, road, electricity along with necessary social and commercial infrastructure with a minimum of 40 dwelling units of double room or single room or equivalent dormitory units or mix of all three.