VISAKHAPATNAM: The Andhra Pradesh government has initiated a demand assessment for the creation of affordable rental housing complexes (ARHC) for industrial workers statewide.
The Andhra Pradesh Township and Infrastructure Development Corporation Limited has pinpointed 13 industrial clusters for this study, including regions such as Anakapalli, Anantapur, Kakinada, Krishna, Nellore, Tirupati, Visakhapatnam, and others. This initiative aligns with the Union government’s ARHC scheme and aims to leverage viability gap funding available under the program.
Officials indicate that the project is designed to tackle housing challenges faced by industrial workers, particularly migrants. Many workers are currently residing in informal settlements or unauthorized colonies lacking essential amenities. In some instances, workers spend 25% to 40% of their income on rent, despite residing in inadequate conditions.
Over the last decade, Andhra Pradesh has seen substantial investments in sectors including manufacturing, ports, electronics, pharmaceuticals, food processing, and logistics. Industrial hubs like the Visakhapatnam-Chennai Industrial Corridor, Sri City, Krishnapatnam, Kakinada, and the Tirupati-Srikalahasti belt have experienced rapid growth, yet the lack of sufficient housing for workers remains a significant issue.
Industry sources report that poor living conditions can lead to health issues, reduced productivity, and increased absenteeism among workers. Consequently, industries struggle to attract and retain skilled labor. Women workers, in particular, face difficulties in finding safe and affordable accommodation near their jobs and often have to travel long distances.
In response to these challenges, the Union government launched the ARHC scheme under PMAY-Urban in 2020, promoting rental housing development via public-private partnerships and viability gap funding. Both the National Urban Rental Housing Policy 2015 and the Andhra Pradesh Industrial Development Policy 2023-27 emphasize worker housing as a critical element of industrial growth and labor welfare.
As part of this initiative, the government, through its municipal administration and urban development department along with APTIDCO, plans to establish affordable rental housing near major industrial clusters. The projects will focus on providing safe, quality accommodation with necessary amenities while fostering private sector involvement.
Officials stated that a consultant will be appointed to conduct the demand assessment and draft project plans. This exercise will also facilitate the development of financially viable projects, recommend appropriate PPP models, and evaluate the need for viability gap funding to attract private investment.
The project aims to establish a sustainable ecosystem that integrates worker welfare, industrial productivity, and private-sector participation. By creating a pipeline of investment-ready affordable rental housing projects, the state hopes to enhance living standards for industrial workers while strengthening its long-term industrial growth and competitiveness.
