Scheme for Promotion of Affordable Rental Smart Housing (SPARSH 2.0): Construction and Redevelopment Incentives

SPARSH 2.0 gives Floor Space Index benefits, extra ground coverage, and regulatory relaxations to support the development and redevelopment of affordable rental housing projects for the urban poor. The Labour and Employment Department of the UT Administration of Dadra and Nagar Haveli and Daman and Diu runs the scheme, which stays open from 2022 to 2027.

Scheme for Promotion of Affordable Rental Smart Housing (SPARSH 2.0) encourages government departments, public sector undertakings, autonomous bodies, and local authorities to build new housing complexes or convert vacant government residential units into rental accommodation. The scheme forms part of the Housing for All mission and supports the Aatma Nirbhar Bharat Abhiyan by creating sustainable rental housing for workers in industries, construction sites, and other sectors.

Scheme for Promotion of Affordable Rental Smart Housing (SPARSH 2.0): Construction and Redevelopment Incentives - Introduction

The scheme mandates the reservation of dwelling units for beneficiaries from the Economically Weaker Section (EWS). Municipalities, district panchayats, PSUs, and autonomous bodies are required to identify available land within their areas and develop at least one affordable rental housing complex. Participating agencies can finance projects through their own resources or seek grant-in-aid support where required.

Key Information

Objectives

SPARSH 2.0 works towards a few clear goals that help workers and the urban poor get a stable place to live near their workplaces.

• Support the Aatma Nirbhar Bharat Abhiyan by creating sustainable rental housing for workers in industries and construction sites.
• Advance the Housing for All vision by providing affordable rental options for low income families.
• Encourage public and private entities to invest in rental housing stock.
• Improve worker productivity, health, and quality of life by reducing the money burden of housing.
• Match local housing practices with the central Affordable Rental Housing Complexes (ARHC) guidelines.

Benefits

Eligible housing complexes get specific regulatory relaxations provided by the Planning and Development Authority or Municipalities.

• Additional Floor Space Index: Each project is entitled to an extra 50% of the applicable FSI.
• Ground Coverage: Projects receive an additional 20% of the permissible ground coverage.
• Relaxations: Authorities may grant specific relaxations in setbacks or road sizes based on local bye-laws.
• Commercial Use: Developers may use 20% of the permissible ground coverage for commercial or business purposes, excluding the Green Zone.
• Regularisation: Existing housing complexes that meet the scheme criteria can be regularised under these relaxed guidelines.
• Priority: Revenue departments will top-priority Non-Agricultural (NA) conversions for these projects.

Eligibility

Applicants need to meet a few conditions to get the SPARSH 2.0 incentives.

1. Applicants must be residents of Dadra and Nagar Haveli and Daman and Diu.
2. The applicant must be the legal owner or an authorised representative of the housing complex.
3. The project must meet all SPARSH 2.0 infrastructure standards.
4. The housing complex must possess valid construction permits and an occupancy certificate.
5. The applicant must reserve at least 66% of the dwelling units for the Economically Weaker Section.
6. The applicant must commit to the professional maintenance and waste management of the complex.

Application Process

Applications under SPARSH 2.0 are currently processed offline. The steps below walk through the full process.

STEP 1 - Obtain the official Form A from the district office designated by the Secretary, Labour.

STEP 2 - Complete Form A and attach all required supporting documents, including Aadhaar details, land ownership papers, government approvals, project proposals, and construction plans.

STEP 3 - Submit the application to the designated nodal officer.

STEP 4 - The nodal officer, along with the Associate Town Planner, will carry out a checking process within 30 days.

STEP 5 - Upon successful verification, the applicant receives a Registration Certificate (Form B).

STEP 6 - The owner must sign an official agreement with the authorities.

STEP 7 - Projects undergo annual compliance verification throughout the tenure of the scheme.

Documents

Keep these documents ready before starting the application.

1. Construction Plan
2. Approved Layout Plan
3. Valid Construction Permission
4. Occupancy Certificate
5. Non-Agricultural (NA) Permission
6. SPARSH 2.0 Registration Documents

References

View Official SPARSH 2.0 Guidelines

Download SPARSH 2.0 Notification PDF

FAQ's

What acts as a pre-requisite for applying?

Projects must be registered under the ARHC scheme or satisfy all SPARSH 2.0 conditions and hold all valid legal permissions.

Is the 66% EWS reservation mandatory?

Yes, reserving at least 66% of dwelling units for the Economically Weaker Section is a core requirement for scheme eligibility.

Are private developers eligible?

Yes, private developers who fulfill the infrastructure and regulatory conditions can get these incentives.

Does the scheme allow for commercial usage?

Yes, 20% of the ground coverage can be used for commercial activities if the site is not located in a prohibited Green Zone.

Can I regularize an existing unauthorized construction?

Existing complexes that meet the criteria under the relaxed guidelines are eligible for regularisation.