India faces the challenge of mass migration from its rural to urban areas, as more people are being drawn towards opportunities for employment in its city centres. The development of urban housing infrastructure has not kept pace with the rise in housing demand from the burgeoning rural-urban migrant population. India is projected to face a total shortage of about 30 million urban housing units by 2022.
In order to address the issue of housing shortages, the Government of India has prioritised the development of the housing sector by establishing the Pradhan Mantri Awas Yojana (Urban) or PMAY (U) scheme in 2015. The PMAY (U) scheme aims to provide housing for all by the year 2022, through its investment in housing developments and the provision of subsidies on housing loans – for first-time house owners among women, and vulnerable populations (such as the elderly and wheelchair-bound), in particular.
Even with government support for growth in affordable housing options, the sector continues to face a lack of project development capacity and limited access to project financing. West Bengal, alone, is estimated to face a shortage of approximately 2.6 million housing units by 2030.
Through the Durgapur Affordable Housing project, InfraCo Asia aims to support the development of India’s affordable housing sector by providing the development expertise and early stage development equity needed to catalyse its growth. By developing the project in accordance with industry best practices and international standards for health and safety, InfraCo Asia expects to enhance the project’s bankability and credibility amongst lenders. Successful implementation of the project is also intended to create a demonstration effect for future private and public sector developers in the affordable housing space.