There are a number of challenges facing affordable housing. The high cost of land, which is the consequence of a number of factors, is one of the principal challenges. Financing the land is another major challenge that Developers/ Builders face in delivering affordable housing. The absence of a clear title is also a serious deterrent for participation by financial institutions and real estate developers in new as well as redevelopment projects of real estate. In the absence of redevelopment and densification of available lands, the land remains underutilized – further contributing to a shortage of land and to high land prices.

The Ministry, upon several consultations and stakeholder deliberations, has structured ‘Public-Private Partnership Models for Affordable Housing in India’. The document deals with several issues in the delivery of affordable housing in India and the mechanisms developed through this PPP document to address such issues. In this regard, six generic PPP structures have been constituted for projects on government land. It also includes risk matrices and comparative analysis on 4 key parameters (scope of work, project structure, financing aspects, and beneficiaries) across all the six models. These generic models for projects on government land are various permutations enabled by the guidelines on Affordable Housing Projects in PMAY (U). During the consultations, the need was felt to develop models for PPP arrangement on privately owned lands as well. The report consists of two such PPP models, linking with the two verticals of the PMAY (Urban) – Credit-linked Subsidy Scheme (CLSS) and Affordable Housing in Partnership (AHP).