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SAFE Accommodation
Worker Housing for Manufacturing Growth 1

SAFE Accommodation

December 2024
Worker Housing for Manufacturing Growth The information contained in this report is
of a general nature and is not intended to
address the circumstances of any particular
individual or entity. Although we endeavour
to provide accurate information and use the
most reliable sources available to us, there
can be no guarantee that such information
is accurate as of the date it is received or that
it will continue to be accurate in the future.
No one should act upon such information
without appropriate professional advice after
a thorough examination of their particular
situation.
Disclaimer SAFE Accommodation
Worker Housing for Manufacturing Growth iv Preface��i
Acknowledgement��iii
Message by Suman K. Bery, Vice Chairman, NITI Aayog��iv
Message by Dr. V.K. Saraswat, Member, NITI Aayog��v
Message by B.V.R. Subrahmanyam, CEO, NITI Aayog��vi
1. Executive Summary��1
1.1 What is preventing the market from filling the gap?��3
1.2 SAFE Accommodation can be developed through the PPP model with VGF support from the
government��5
1.3 Recommendations and way forward��6
2. Overview of SAFE accommodation��10
2.1 Defining SAFE Accommodation (Site Adjacent Factory Employee Accommodation)��11
2.2 Objective of SAFE Accommodation��12
3. Need for Site Adjacent Workers’ accommodation��14
3.1 Employment intensive manufacturing is critical for India��15
3.2 Workers’ accommodation - Key unlock for making India’s manufacturing sector globally
competitive��17
3.3 Current situation - Ad-hoc workers’ accommodation��20
4. Regulatory unlocks��24
4.1 Zoning regulations��25
4.2 Building regulations��27
4.3 Operating regulations��31
5. Economic unlocks��34
5.1 The current gap��35
5.2 Limitations of existing government support��36
6. Models for developing SAFE accommodation��42
6.1 Overview of the 4 models��43
6.2 Enabling market led models of developing workers’ accommodation ��48
7. Recommendations and way forward��50
7.1 Summary of recommendations��51
7.2 Way forward��54
References��57
Appendix��63
Table of
Contents SAFE Accommodation
Worker Housing for Manufacturing Growth vi Rental housing with dormitory-
type accommodation for industrial
workers will be facilitated in public-
private partnership (PPP) mode with
Viability Gap Funding (VGF) support
and commitment from anchor
industries.
“
“
Hon'ble Finance Minister
(Union Budget 2024-25) SAFE Accommodation
Worker Housing for Manufacturing Growth i
PREFACE
In the Union Budget 2024, the Finance Minister announced a significant initiative to
address the need for workers' accommodation: “Rental housing with dormitory-type
accommodation for industrial workers will be facilitated in public-private partnership (PPP)
mode with Viability Gap Funding (VGF) support and commitment from anchor industries."
To take concrete steps toward this budget announcement, a National Workshop on Site-
Adjacent Factory Employee (SAFE) Accommodation was convened by NITI Aayog, with the
Jana Group as the knowledge partner, on August 7, 2024, at Bharat Mandapam, New
Delhi. The workshop focused on the critical shortage of workers’ accommodation near
industrial areas, which drives workforce attrition, lowers productivity, and undermines
the competitiveness and growth of India’s manufacturing sector.
The workshop brought together a diverse group of stakeholders:
• Central Government: Ministries and departments of Finance, Textiles, Housing and
Urban Affairs, Electronics and Information Technology participated to deliberate
on policy and fiscal interventions.
• State Government: Representatives from industrially active states such as Tamil
Nadu, Gujarat, Andhra Pradesh, Karnataka, and Uttar Pradesh shared their
innovative workers’ accommodation models and discussed regulatory reforms.
• Industry Leaders: Experts from sectors like textiles, electronics, automobile, leather,
and food processing contributed their insights on the operational challenges and
potential of market-based housing solutions.
The workshop highlighted the urgent need for policy and regulatory reforms to
integrate workers’ accommodation seamlessly into industrial planning. This includes
adopting mixed land-use policies, easing development regulations and building norms
to facilitate construction. Financial support mechanisms such as VGF, tax incentives, and
affordable utility tariffs, were emphasized to enhance the economic feasibility of SAFE
accommodation projects. Leveraging public-private partnerships (PPPs) emerged as a
key strategy for scaling these projects with infrastructure investors and industry anchors
playing crucial roles. Additionally, the importance of creating sustainable and inclusive
accommodation with access to essential social infrastructure, including healthcare and
education, was stressed upon to ensure sustainability and worker well-being. SAFE Accommodation
Worker Housing for Manufacturing Growth ii
FORMATION OF A WORKING GROUP ON SAFE
ACCOMMODATION
Following the workshop, a working group was constituted under NITI Aayog to develop
actionable recommendations, chaired by Shri Ishtiyaque Ahmed, Senior Adviser (Industry
& Foreign Investment), NITI Aayog. The group included representatives from the Ministry
of Electronics and Information Technology (MeitY), the Department for Promotion of
Industry and Internal Trade (DPIIT), the Ministry of Housing and Urban Affairs (MoHUA),
the Department of Economic Affairs (DEA), the Ministry of Textiles, the Ministry of Micro,
Small and Medium Enterprises (M/o MSME), and the Governments of Tamil Nadu and
Uttar Pradesh, along with representatives from Jana Group, Foundation for Economic
Development (FED), and Shri Upendra Kumar Gupta, Deputy Adviser, NITI Aayog. The
group’s primary objective was to design a scalable, sustainable framework for SAFE
accommodation.
The Working Group's efforts culminated in the report, “SAFE Accommodation: Worker
Housing for Manufacturing Growth” outlining launch and institutionalization of SAFE
Accommodation Scheme that provides viability gap funding for SAFE accommodation
projects from the central government, available to states conditional on regulatory
reforms.
... SAFE Accommodation
Worker Housing for Manufacturing Growth iii
ACKNOWLEDGEMENT
I would like to acknowledge the contribution of all the members of the Working Group
for their valuable suggestions and insights in framing up the recommendations on
SAFE Accommodation. This endeavour would not have been possible without active
participation of Shri Solomon Arokia Raj, Joint Secretary, Department of Economic Affairs,
Shri Kuldip Narayan, Joint Secretary, Ministry of Housing & Urban Affairs (MoHUA), Ms.
Anuja Bapat, Deputy Director General, Ministry of MSME, Ms. Pratima Singh, Director,
Department for Promotion of Investment & Internal Trade (DPIIT), Shri Nirmod Kumar,
Director, Ministry of Electronics & Information Technology (MEITY), Shri Akhilesh Kumar,
Deputy Director General, Ministry of Textiles, Shri PS Reddy, Adviser (PPP), NITI Aayog and
Representatives from State Governments of Tamil Nadu and Uttar Pradesh, as members
of the Working Group.
I would also like to acknowledge Shri Ramesh Ramanathan, Co-founder, Jana Group, Shri
Sandeep Bedi, CEO & Executive Director, Janaadhar, Shri S. Krishnan, Head (Strategy)
Janaagraha and Shri Piyush Doshi, Operating Partner, Foundation for Economic
Development (FED) for their invaluable contribution in the preparation of this report.
Shri Krishnan and Shri Doshi have been part of the Working Group and have also been
instrumental in shaping this report. I would also like to acknowledge the efforts of Ms.
Nitya Srinath, Senior Associate, FED; Shri Mihir Parekh, Associate Partner, FED and Shri
Rahul Ahluwalia, Director, FED for being actively involved in the drafting and preparation
of this report.
Finally, I would also like to acknowledge the contribution of Shri Upendra Kumar Gupta,
Member Secretary of the Working Group, Shri Abhishek Mukherjee, Research Officer
at NITI Aayog, Ms. Nidhi Arora at Consultant, NITI Aayog and Ms. Pragya Bajpai, Young
Professional at NITI Aayog along with the supporting team from NITI Aayog, provided their
inputs from time to time and organized regular interactions with members of Working
Group and stakeholders. Their contributions have helped immensely to give this report
its present shape.
ISHTIYAQUE AHMED
Chair
Working Group on S.A.F.E. Accommodation
NITI Aayog
Working Group Order is at Annexure-1
Members of the Working Group are at Annexure-2 iv v vi SAFE Accommodation
Worker Housing for Manufacturing Growth 1 SAFE Accommodation
Worker Housing for Manufacturing Growth 2
Chapter
01
Executive
Summary SAFE Accommodation
Worker Housing for Manufacturing Growth 3
1. EXECUTIVE SUMMARY
India’s manufacturing sector, which currently contributes about 14% to the nation’s
nominal Gross Value Added (GVA) is poised for transformative growth. GVA is an economic
productivity metric that measures the contribution of a sector to an economy. Adding
taxes earned by the government and subtracting subsidies provided by the government
to this value yields the Gross Domestic Product (GDP). The Government of India aims to
increase the manufacturing sector’s GDP contribution to 25% while achieving an annual
GDP growth rate of 9.4% to realise its Viksit Bharat goals. This ambitious target demands
significant expansion, enhanced competitiveness, and economies of scale to attract major
global and domestic players.
A key challenge in this growth trajectory is ensuring the availability of a sufficient workforce
in a single, centralised location. Given the population density and scale of operations,
manufacturing relies heavily on migrant workers. This situation presents a complex
dilemma where the development of factories hinges on the availability of accommodation,
yet the demand for housing relies on the existence of factories. Inadequate accommodation
near industrial hubs contributes to high attrition rates, low productivity, and workforce
instability. Moreover, this prevents workers, particularly women, from migrating in search
of better employment opportunities, thereby impacting the manufacturing sector’s
competitiveness and undermining the sector’s growth potential.
Recognizing that workers’ accommodation is essential infrastructure for rapid
industrialisation, the SAFE Accommodation initiative (Site Adjacent Factory Employee
Accommodation) proposes a targeted solution. The development of long-term, dormitory-
style housing near workplaces, equipped with essential amenities will essentially reduce
commute time, improve worker well-being and also boost productivity. Addressing these
infrastructure gaps is crucial for unlocking India’s underutilized workforce and achieving
its vision of becoming a global manufacturing powerhouse.
1.1 What is preventing the market from filling the gap?
This report identifies two primary bottlenecks that are preventing the market
from filling the gap: regulatory barriers and economic constraints.
1.1.1 Regulatory barriers
i. Inflexible zoning regulations: The laws that are designed to
separate residential and industrial activities often prohibit or limit
the construction of residential units in areas zoned for industrial use.
However, such restrictions do not account for the practical need for
affordable workers’ accommodation in proximity to industrial hubs. By
revisiting and reforming zoning laws, India can create a more flexible SAFE Accommodation
Worker Housing for Manufacturing Growth 4
and inclusive regulatory framework that supports SAFE accommodation
near industrial sites.
ii. Conservative building regulations: These regulations further restrict
land usage, locking land in suboptimal uses where it could house
substantially more people. Additionally, the residential bylaws are
designed for family accommodation instead of dormitories. Flexible
and contemporary standards with optimal regulations need to be
created for “SAFE Accommodation”.
iii. Operating costs: Currently most formal sector hostels are often
caught in a legal grey area, with regulations varying by state. In
some cases, these accommodations are forced to function as hotels,
resulting in commercial water, electricity and property taxes, which
are much higher than residential rates. By classifying group housing as
residential, it would help reduce these costs and make accommodation
more accessible and affordable for workers.
1.1.2 Economic constraints
Building workers’ accommodation requires high capital costs even after
regulatory reforms. Private developers have not been able to enter the
market for worker housing due to lack of financial viability. Stakeholder
consultations indicate that the infrastructure investors would require a
project IRR of 15-17%, translating to a monthly lease rental of approximately
Rs. 4,000 per worker for 80 square feet. However, this constitutes around
30% of the minimum-wage worker’s salary, making it unaffordable for many.
Figure: Lease rental per month per worker of a sample SAFE accommodation with
5,000 beds with a project IRR of 15%
Source: FED Analysis SAFE Accommodation
Worker Housing for Manufacturing Growth 5
The analysis in this report reveals that regulatory reforms overall bring
the cost down by 20%, and financial support from the government further
brings the cost down by 25%. This brings the monthly lease rental that the
workers will have to pay down to ~Rs. 3000 per month. While this amount
is within the affordability range of most workers formally employed at
or above minimum wages, consultations with employers also indicate a
willingness to share a portion of the workers’ rental costs, recognizing the
benefits of reduced attrition and enhanced productivity that result from
providing stable and accessible accommodations.
1.2 SAFE Accommodation can be developed through the PPP model with
VGF support from the government
This report explores four primary models for the development of SAFE
Accommodation on a large scale: Government Owned and operated, government
owned but privately operated, public-private partnership (PPP), and privately
owned and operated. SAFE Accommodation
Worker Housing for Manufacturing Growth 6
Table: Overview of the 4 models for developing workers’ accommodation
Source: Working group discussions
While Model 1 and 2 do not have financial viability constraints, and hence can
ensure rental affordability, their lack of scalability due to capital constraints on the
part of the Government eliminates them from being the preferred model of choice.
Model 3, i.e., the PPP model shares responsibilities between the government and
private sector, with the government often providing land and / or subsidies and
private entities handling construction and management. This approach enables
cost-sharing and scalability, making it ideal to cater to high-demand. The Public
Private Partnerships in Infrastructure Viability Gap Funding (VGF) Scheme can be
leveraged for this purpose. Model 4 addresses the scalability issue on account of
private capital being roped in, as it is the most efficient in terms of speed of asset
creation. Since the rent in this model is market-driven, it may be unaffordable for
minimum-wage workers. However, many manufacturing companies developing
accommodations for their workers on their own land are willing to subsidise a
portion of the rent.
1.3 Recommendations and way forward
Our recommendation is to launch a SAFE Accommodation Scheme that provides
viability gap funding for SAFE projects from the centre, available to states
conditional on regulatory reforms.
Salient aspects of the scheme include: SAFE Accommodation
Worker Housing for Manufacturing Growth 7
1.3.1 Classification of SAFE Accommodation
SAFE accommodation should be classified as a distinct category of residential
housing. This classification would ensure:
i. GST exemption on lease rentals, in line with the latest GST circular
(Circular No. 228/22/2024-GST), which exempts certain long-term
accommodation services from GST obligations. A clarification that SAFE
accommodation is covered under this exemption should be provided
by the appropriate authority to ensure clarity on this matter.
ii. Application of residential rates for property tax, electricity and water
tariffs.
iii. Long term dormitory-style accommodation exclusively for workers in
industries, located near their workplaces.
iv. Environmental Clearance exemption for SAFE accommodation projects.
On November 7, 2024, the Ministry of Environment, Forest and Climate
Change (MoEF&CC) issued a draft notification No.S.O. 4844(E) to amend
item 8 of Notification No. S.O.1533(E), exempting projects like industrial
sheds, schools, colleges, and educational hostels from Environmental
Clearance. SAFE Accommodation
Worker Housing for Manufacturing Growth 8
2. FINANCIAL SUPPORT ENVISAGED FROM THE CENTRE
i. Viability gap funding (VGF) of up to 30% of the total project cost (excluding land)
will be jointly provided by the Department of Economic Affairs (DEA), contributing
20%, and the sponsoring nodal Ministry of Government of India, contributing 10%
on the lines of “Financial support to Public Private Partnerships in Infrastructure”
scheme. The VGF can also be used to retrofit / upgrade existing brownfield workers’
accommodation facilities.
3. CONDITIONS TO BE MET BY STATES FOR AVAILING VGF
SUPPORT UNDER THE SCHEME
i. Zoning reforms: Mixed land use zoning should be permitted in industrial areas
to allow unrestricted construction of SAFE accommodation. Alternatively, SAFE
accommodations can be designated as permitted land use within industrial zones.
ii. Building regulation reforms: FAR should be liberalised such that building height can
be decided based on cost efficiency considerations (as per the model discussed
with developers, at least construction of 5 floors should be enabled) and GCR for
the building should not be less than ~60% of the total area. Parking, amenities and
setbacks are to be included in the remaining open area (~40% of the total area).
These regulations may be reviewed periodically to enable improvements in cost
effectiveness.
4. AMENDMENT TO THE VGF SCHEME
Annexure 3 of the Public Private Partnerships in Infrastructure Viability Gap Funding (VGF)
Scheme should be amended to include Affordable Rental Housing in the list of eligible
sectors to enable SAFE accommodation facilities to avail the scheme.
WAY FORWARD
To take these recommendations forward, a pilot phase may be launched in select champion
states to prove the concept, with a dedicated Project Management Unit (PMU) established
under the Ministry of Housing and Urban Affairs (MoHUA) to oversee the initiative. SAFE Accommodation
Worker Housing for Manufacturing Growth 9
Table: Summary of roles and responsibilities
Source: Working group discussions SAFE Accommodation
Worker Housing for Manufacturing Growth 10
CHAPTER
02
Overview
of SAFE
Accommodation SAFE Accommodation
Worker Housing for Manufacturing Growth 11
2. OVERVIEW OF SAFE ACCOMMODATION
2.1 Defining SAFE Accommodation (Site Adjacent Factory Employee
Accommodation)
Workers’ accommodation is vital to India’s ambition of becoming a global
manufacturing hub, enhancing worker welfare, productivity, and retention, and
should therefore be classified as critical infrastructure, under a separate category
– SAFE Accommodation.
Definition of SAFE Accommodation (Site Adjacent Factory Employee
Accommodation)
SAFE Accommodation includes long term dormitory-style accommodation,
exclusively for workers in industries, strategically located near their workplaces.
This accommodation is rented directly to workers or their employers and
includes essential amenities such as water, electricity, sanitation facilities, and
other basic services like food, laundry, and dispensary facilities.
SAFE accommodation excludes family housing. While such housing for supervisory
staff in factories across various sectors is an important need, this initiative focuses
on the most urgent and greatest needs of the entry level workers, where the gaps
in market-based solutions are most pressing. Ownership of SAFE accommodation
units cannot be transferred, and it cannot be sold to either workers or employers. SAFE Accommodation
Worker Housing for Manufacturing Growth 12
2.2 Objective of SAFE Accommodation
Recognising the pressing importance of the matter, Hon’ble Finance Minister in
the Union Budget 2024-25
1
announced that “Rental housing with dormitory type
accommodation for industrial workers will be facilitated in PPP mode with VGF
support and commitment from anchor industries”.
This report builds on the announcement to outline the contours of an initiative
for SAFE accommodation
The objectives of the SAFE accommodation initiative include:
i. To enable labour mobility and boost productivity by providing SAFE
accommodation, thereby strengthening the competitiveness of the
manufacturing sector.
ii. Designate workers’ accommodation as critical infrastructure – SAFE
Accommodation and implement tailored regulations to enhance feasibility
(Construction and Operation).
iii. To develop a market-driven ecosystem where private developers can offer
affordable workers’ accommodation while ensuring attractive returns on
investment.
1 Key features of budget 2024-2025 SAFE Accommodation
Worker Housing for Manufacturing Growth 13 SAFE Accommodation
Worker Housing for Manufacturing Growth 14
CHAPTER
03
Need For
Site Adjacent
Workers’
Accommodation SAFE Accommodation
Worker Housing for Manufacturing Growth 15
3. NEED FOR SITE ADJACENT WORKERS’ ACCOMMODATION
3.1 Employment intensive manufacturing is critical for India
India needs to create more jobs as it becomes a $5 trillion economy in the
medium term and advances toward its long-term goal of embodying Viksit Bharat
or a fully developed nation by 2047. According to the Economic Survey 2023-24
2
,
India needs to add 7.85 million jobs every year until 2030 to sustain economic
growth. We also need to create more jobs for our women, as every country that
has become prosperous has seen women enter the workforce in large numbers.
In China today, women contribute around 41% to the GDP
3
, which is in sharp
contrast to India, where women contribute only 18% to the GDP
4
. China’s female
labour participation rate is 61%, nearly double that of India’s. Creating more jobs
and better access to opportunities for women is crucial for our goals of becoming
a developed country.
2 Economic Survey 2023-24
3 USC Annenberg
4 Economic Times SAFE Accommodation
Worker Housing for Manufacturing Growth 16
Currently, the manufacturing sector employs just 11% of the workforce, while
contributing 14% to the nominal GVA
5
. Agriculture on the other hand employs
46% of the workforce while contributing only 18% to the GVA. A dedicated focus
on employment intensive manufacturing can create jobs at such a large scale.
The ambitious goals set by the Make in India and Atmanirbhar Bharat
campaigns requires substantial growth in manufacturing, demanding enhanced
competitiveness and economies of scale while also attracting major global and
domestic players. Specific industrial hubs are emerging, such as the assembly
and packaging industry in Sriperumbudur, Tamil Nadu, the Electric Vehicle (EV)
hub in Hosur, Tamil Nadu, and the semi-conductor hub in Dholera, Gujarat.
The landscape is increasingly marked by large-scale mega factories, with initial
establishments already underway. Securing adequate workforce in a single
concentrated location is a critical challenge. Due to population density and scale
needs, this workforce typically includes migrant workers. This situation presents
a complex dilemma where the development of factories hinges on the availability
of housing, yet the demand for housing relies on the existence of factories.
As shown in the figure below, India needs to grow at a CAGR of 9.4% per
annum to reach its Viksit Bharat goals and create more jobs. Assuming that the
manufacturing GDP grows at 11% per annum accompanied by ~1.5 x growth in
workforce productivity, by the end of 2033, the manufacturing sector should have
created 120 million jobs. Assuming that ~20% of the total workforce in 2033 will
prefer affordable formal accommodation if made available, we need to create
approximately 25 million formal accommodation units for our manufacturing
workers.
Figure 3.1: India GDP, employment in manufacturing and formal accommodation –
current and projected
Source: PLFS, World Bank, Author’s calculation
5 Ministry of Statistics and Programme Implementation (MoSPI) SAFE Accommodation
Worker Housing for Manufacturing Growth 17
3.2 Workers’ accommodation - Key unlock for making India’s
manufacturing sector globally competitive
3.2.1 Structural change involves migration to urban and industrial centres
Structural change in an economy is the process of reallocation of labour
across economic sectors with different levels of labour productivity. This
reallocation of labour contributes positively to growth when it is from lower-
productivity sectors to higher-productivity sectors. Research also suggest
that this is the principal route to improvement in employment conditions
in low-income economies, especially in countries with low-productivity
work and underemployment rather than high unemployment. This model SAFE Accommodation
Worker Housing for Manufacturing Growth 18
of development can be observed through 2 decades of growth in China.
Between 1980 and 2009, 150 million workers migrated to the cities and were
the principal source of urban low-cost low-skilled labour and of workers
in the construction and manufacturing export industries
6
. High economic
growth rates became associated with high rates of migration to the cities.
Similarly, structural change in India can lead to rapid economic growth
with the movement of large amount of population from low-productivity
agriculture to high-productivity industrial jobs. Of the 60 million workers
employed in manufacturing
7
, close to 6 million (~10% of the total
manufacturing workforce) are inter-state migrant workers
8
.
Data shows that, of the migrants who had an income before leaving their
homes, 56.2 per cent noted an increase in their income
9
. Despite clear
evidence that shows improvement in livelihood through migration, as per
the 2020 PLFS data
10
, only 1.3% of women migrated for better employment
opportunities. At the same time, 42.9% of their male counterparts moved
out of their hometowns in search of jobs. What is preventing women from
migrating in search of better employment opportunities? One possible
explanation may be that most migrants are not provided with adequate
housing facilities.
3.2.2 Provision of workers’ accommodation enables migration: Insights from
China, Japan, Vietnam and Singapore
When one looks at the Chinese experience in developing hundreds of
millions of low-skill jobs in labour-intensive manufacturing, the focus is
usually on Special Economic Zones, and the incentives given to foreign direct
investment (FDI). However, an important point that is rarely recognised is
that cheap housing was provided for workers, which increased their real
wages. A majority of migrant factory workers were accommodated in
workers’ dormitories built by employers, often on land provided for free by
local governments
11
. About 80% of the thirty million assembly-line workers in
China’s Special Economic Zones are female
12
. Most are recruited from rural
areas of interior provinces where the less developed economy has little to
offer them. For factories that want to hire migrant women workers as in the
6 The Role of Rural Migrants in the Chinese Urban Economy
7 Author’s calculation
8 Ind-Ra - Reverse labour migration to lead to multiple headwinds for manufacturing sector
9 Business Line
10 PLFS 2020-21
11 Public Workers’ Housing Helps Labour-Intensive Manufacturing
12 Southern China: Migrant Workers and Economic Transformation SAFE Accommodation
Worker Housing for Manufacturing Growth 19
case of assembly line work, accommodation is often part of the employment
agreement
13
. In fact, the dormitory system can commonly be seen across
labour intensive industries in Asia. Early Japanese industrialisation housed
female labour force from faraway villages in dormitory accommodation
14
.
Singapore has separate act for migrant housing called the Foreign Employee
Dormitories Act 2015
15
and differential building regulations for workers’
dormitories
16
. Most recently, the Vietnam government had approved a plan
to build 1 million social housing units for low- and middle-income households
in urban areas and for workers in industrial parks
17
. This system made it
possible for factories to recruit female labour from rural areas, without
which their migration would have been inhibited due to safety concerns.
13 The Impact of Export-Oriented Manufacturing on Chinese women workers
14 Textile factories, tuberculosis, and the quality of life in industrializing Japan
15 FEDA 2015
16 Singapore Urban Redevelopment Authority
17 Hanoi Times SAFE Accommodation
Worker Housing for Manufacturing Growth 20
3.3 Current situation - Ad-hoc workers’ accommodation
3.3.1 Existing gaps in workers’ accommodation in India
It has been well documented in multiple studies
18
that worker housing is
complementary to investments such as education and training, which
permanently raise worker performance, improve their productivity, and
reduce absenteeism. In Tirupur, for instance, garment firms invest in
training workers, and they also carry out additional investment in providing
subsidised accommodation to retain workers
19
. They believed that formal
housing would enable stabilisation of the labour force which would in
18 Effects of Improved Housing on Worker Performance
19 Public Workers’ Housing Helps Labour-Intensive Manufacturing SAFE Accommodation
Worker Housing for Manufacturing Growth 21
turn promote skill training by employers. The Tirupur garment exporters’
association asked for the local government to provide subsidised housing
for workers in the form of public-private partnerships.
However, poor living conditions exacerbate health issues among workers,
increasing infectious diseases and chronic illnesses due to overcrowding
and unsanitary environments. Additionally, substandard housing coupled
with long commutes results in fatigue, lowering worker productivity and
elevating absenteeism. This physical and mental strain diminishes efficiency
and heightens the likelihood of errors and accidents. Additionally, harsh
living and commuting conditions contribute to higher turnover rates,
disrupting workforce stability and continuity. The consequent need for
frequent recruitment and training drives up operational costs, thereby
compromising overall efficiency and profitability. Addressing these
accommodation challenges is crucial not only for enhancing worker well-
being but also for optimizing organizational performance.
A recent study in an industrial area near Bangalore has highlighted significant
deficiencies in workers’ accommodations. This research examined current
living conditions, commuting challenges, transportation costs, and the
resulting effects on productivity.
Table 3.1: Poor economics and productivity loss in Narasapura Industrial Area, Hoskote
Source: Study by Janaadhar, 2023
As shown in table 3.1 above, the findings reveal that workers in this area
travel approximately two hours each way from their temporary residences
to the factory, amounting to a total of four hours daily. This commute
imposes a considerable financial burden on the company, which spends
around Rs. 5,000 per worker each month on transportation. SAFE Accommodation
Worker Housing for Manufacturing Growth 22
Quality of life issues are also prominent, as these makeshift accommodations
lack essential amenities, leading to physical and mental strain for workers
due to prolonged travel times. These conditions contribute to high attrition
rates, which, in turn, negatively affect the operational efficiency and
profitability of the industrial site.
From an economic and operational perspective, high transportation costs
directly increase operational expenses, while reduced productivity and
elevated attrition require additional spending on recruitment and training.
These factors collectively impact the overall profitability of the industrial
site.
3.3.2 Workers’ accommodation near factories will boost global competitiveness
To elevate India to the high table of manufacturing in the global economy,
addressing workers’ accommodation is crucial. The broad benefits are
outlined below – SAFE Accommodation
Worker Housing for Manufacturing Growth 23
i. Enhancing Workforce Productivity and Retention: Adequate and
proximate housing improves workers’ quality of life, reducing commute
time and enhancing overall productivity. This, in turn, lowers attrition
rates and recruitment costs, ensuring a stable and skilled workforce for
factories.
ii. Attracting Global Investments: Investors and multinational
companies consider worker welfare and operational efficiency when
making investment decisions. Providing well-planned accommodations
signals a commitment to high standards and sustainable practices,
making India an attractive destination for global manufacturing
investments.
iii. Aligning with Global Labour Standards: Adhering to international
labour standards, which emphasize the provision of SAFE and adequate
housing, enhances India’s reputation and compliance in the global
market. This can lead to more business opportunities and partnerships
with international firms
The provision of workers’ accommodation is a win-win-win scenario for all
stakeholders involved:
Win for Workers – They gain access to hygienic, safe, and well-designed
accommodation, improving their living conditions and overall well-being.
Essentially, this will lead to higher job satisfaction and reduced turnover
rates, contributing to a more stable workforce.
Win for Companies – They benefit from having a workforce that is less
fatigued and more productive due to shorter commute times. Proximate
housing allows for better skill development and training opportunities,
reducing overall labour costs through lower attrition and enhanced
efficiency.
Win for the Government – The government benefits from a more robust
and competitive manufacturing sector that can compete globally. Improved
labour conditions attract foreign investments and generate higher economic
growth. Additionally, integrating housing with industrial development helps
optimize urban planning and infrastructure usage, leading to sustainable
urban development.
Even though there is demand for workers’ accommodation from
manufacturing companies, attempts at setting up large scale workers’
accommodation has not succeeded in India
20
. This is mainly on account
of certain regulatory and economic bottlenecks, which we explore in the
subsequent chapters.
20 Worker Housing - Unlocking Labour-intensive Manufacturing In India SAFE Accommodation
Worker Housing for Manufacturing Growth 24
CHAPTER
04
Regulatory
Unlocks SAFE Accommodation
Worker Housing for Manufacturing Growth 25
4. REGULATORY UNLOCKS
The regulatory environment for workers’ accommodation development in India poses
several challenges, including restrictive zoning laws, building regulations, and increased
operating costs due to commercial classifications. Addressing these regulatory hurdles
is critical to making SAFE accommodation feasible, affordable and scalable. By creating
an enabling regulatory environment, the government can unlock significant potential for
private sector investment and ensure affordable housing solutions for India’s growing
industrial workforce.
4.1 Zoning regulations
4.1.1 The constraint
One of the primary regulatory barriers to developing workers’
accommodation near industrial zones are inflexible zoning laws. Table 4.1
below provides an overview of these regulations in top labour-intensive
manufacturing hubs. These laws, designed to separate residential and
industrial activities, often prohibit or limit the construction of residential
units in areas zoned for industrial use. However, such restrictions do not
account for the practical need for affordable worker housing in proximity
to industrial hubs. By revisiting and reforming zoning laws, India can create
a more flexible and inclusive regulatory framework that supports SAFE
accommodation near industrial sites.
Table 4.1: Zoning regulation across top labour intensive manufacturing hubs
Telangana
All types of residential buildings, group complexes and hostels
permitted in residential, commercial and multiple use zones.
However, residential buildings cannot be set up in “Work centre
use zones” where industries can be set up.
Tamil Nadu
Only working women’s hostels can be set up in areas zoned
for residential use. Other hostels are categorised as commercial
establishments, and while they can be freely constructed in
commercial zones, in residential zones they can occupy a floor area of
only 500 sqm.
Noida (UP)
Housing can be set up only in residential areas. Requests for
conversion of industrial plots would not generally be allowed,
except in exceptional circumstances, and conversion charges and
location benefit charges at 10% of the prevailing land rate would be
issued. SAFE Accommodation
Worker Housing for Manufacturing Growth 26
Kolar (KA)
Allows for the construction of worker housing / hostels in all zones
without any restrictions, along with the provision of free change of
land use (CLU).
Gujarat
While mixed land use has been implemented throughout zones,
residential dwelling is restricted to certain conditions.
Table 4.2 below summarises the impact of these regulations. Very few
locations allow for the construction of workers’ accommodation / hostels in
all zones without any restrictions.
Table 4.2: Permissibility of setting up workers’ accommodation under land zoning
regulations
ResidentialCommercial Industrial
Free change of
land use (CLU)
Telangana Allowed Allowed
Allowed with
conditions
Yes
Tamil Nadu
Allowed with
conditions
Allowed Allowed Yes
Noida
(Uttar Pradesh)
Allowed Not AllowedNot Allowed No
Kolar
(Karnataka)
Allowed Allowed Allowed Yes
Gujarat
Allowed with
conditions
Allowed with
conditions
Allowed with
conditions
No
Source: State building regulations, zoning regulations, masterplans, and notifications
4.1.2 Potential Solutions
The Japanese zoning system is the most ideal. Unlike the exclusive
zoning approach commonly found in Indian states, Japan’s system
allows for “maximum” use rather than strictly exclusive use within each
zone. For instance, while a factory cannot be established in a residential
neighbourhood, residential housing is permitted in light industrial zones.
It consists of 12 basic zones, arranged in a hierarchy based on potential
externalities, ranging from low-rise residential zones to high-rise residential,
commercial, light industrial, and industrial zones. Additionally, the Japanese
zoning system does not differentiate between types of residential use
(group or family housing etc), offering greater flexibility in land utilization. SAFE Accommodation
Worker Housing for Manufacturing Growth 27
Similarly, Indian states could introduce mixed-use zoning permissions that
allow for residential housing within or adjacent to industrial areas. This
reform can be structured to support high-density, dormitory-style housing
that maintains necessary safety and environmental standards.
Alternatively, special overlay zones can be created within industrial clusters
where residential use is permitted specifically for workers’ accommodation
without any restrictions as it is ancillary to industrial activity. This targeted
zoning approach would allow housing only for verified industrial workers,
addressing housing needs without conflicting with industrial activities.
4.2 Building regulations
4.2.1 High construction cost
Large-scale workforce accommodations should strike a balance between
functionality and cost-efficiency. Building larger structures, especially taller
ones, inherently increases costs per square foot due to additional structural
reinforcements, more complex foundation systems, and adherence to
stricter fire safety codes. Elevators, often necessitated by height, reduce
usable space while adding expense, and taller buildings typically require
extended construction timelines. Expanding horizontally, while potentially
reducing vertical construction costs, demands large parcels of land, which
may limit availability while also inflating overall expenses.
To estimate the cost of building a SAFE accommodation facility for a large
workforce, a scenario to accommodate 5000 workers has been considered.
The total cost of construction per square feet was taken from the latest
Central Public Works Department (CPWD) plinth area rates
21
. Based on
certain assumptions and consultations with industry stakeholders, the
cost of electrification, cost of setting up water supply and sanitation,
other contingencies, and miscellaneous costs such as architect’s fees
and external development cost has been calculated. The construction
cost model estimates the total construction cost for developing a 5,000-
bed SAFE accommodation facility with a total built up area of ~ 4 lakh
sq. ft. to be Rs. 132 crore, amounting to Rs. 2.6 lakh per bed. This model
adheres to the minimum standards outlined in the National Building Code
for living space, toilet facilities, water supply, and common rooms per
worker. Workers’ accommodation can typically be categorised as low-rise
affordable residential buildings with maximum 5 floors and no elevator
22
.
Based on the calculations, the average space per person, including living
21 CPWD 2023
22 Savills - Worker Housing Opportunities SAFE Accommodation
Worker Housing for Manufacturing Growth 28
and recreational areas, is approximately 80 square feet. This represents
the baseline standard, though it may range from 75 to 100 square feet per
individual, depending on the specific allocation for living quarters, common
areas, and additional facilities.
4.2.2 Building standards impact land utilisation, and hence SAFE
accommodation capital expenditure
Building bye-laws or regulations are the set of rules and guidelines that
oversee the construction and development of buildings and structures.
These regulations outline the permissible land uses and zoning restrictions,
thereby affecting efficient land utilisation. SAFE Accommodation
Worker Housing for Manufacturing Growth 29
The major regulatory instruments examined include:
i. Floor Area Ratio (FAR) / Floor Space Index (FSI): The ratio of a building’s
total usable floor area to the total plot area
ii. Ground Coverage Ratio (GCR): The ratio of land on a site that is covered
by a building to the total plot size
iii. Setbacks: The minimum open space required along the plot boundary
on each side
iv. Parking requirements: The minimum number of parking spaces
required as specified by the bye-laws
v. Open spaces and amenities requirements: Minimum amenities space
required as specified by the bye-laws SAFE Accommodation
Worker Housing for Manufacturing Growth 30
FAR and GCR dictate the extent to which a plot can be utilized for building
purposes. A higher GCR signifies a larger portion of the plot being covered,
enabling horizontal expansion, while a higher FAR enables vertical
growth. Setbacks, which mandate minimum distances from property
lines, roads, and adjacent buildings, are intended to ensure adequate
sunlight, ventilation, greenery, and access. They also help reduce fire risks
between structures. However, very high setbacks can lead to wastage of
space. These regulations do not account for modernisation in technology
and manufacturing processes
23
. Furthermore, industrial housing faces
additional challenges from mandatory parking requirements, which are
unnecessary as most industrial workers do not own private vehicles, adding
to the constraints on available land.
A study conducted by Foundation for Economic Development (FED)
24

highlights the impact of these standards on land utilisation. This is
showcased in figure 4.1 below:
Figure 4.1: Building standards across manufacturing states and cities
Source: FED Analysis
Telangana, with its relatively friendly regulations, requires only 3 acres to
accommodate 5,000 workers. Conversely, Gujarat’s land requirements
are approximately three times greater, indicating significantly more
conservative regulations. Rather than imposing separate requirements for
parking, amenities, and setbacks in addition to specifying a GCR to maintain
23 State of Regulation: Building standards reforms for jobs and growth
24 Worker Housing - Unlocking Labour-intensive Manufacturing In India SAFE Accommodation
Worker Housing for Manufacturing Growth 31
green cover, we could simplify by setting the GCR at 55-60%. The remaining
open space can be used for setbacks, parking and amenities, providing
sufficient room for internal roads and sidewalks.
4.3 Operating regulations
Workers’ accommodations in the dormitory style are generally developed as
hostels. Currently, the hostel industry primarily functions within the unorganized
sector, dominated by small operators catering to migrant workers or outstation
students from economically weaker sections. These hostels offer basic
accommodation and often include incidental services like food and laundry.
While most of these facilities operate informally, those in the formal sector face
regulatory ambiguity, as their classification is left to the discretion of individual
states. In certain cases, hostels are required to operate under hotel regulations
following the 2019 Central Tax notification
25
, which expanded the definition of
hotel accommodation to encompass any commercial establishment intended for
residential use. This increases operational costs, as hostels are subjected to higher
25 Notification No. 20/2019- Central Tax (Rate) SAFE Accommodation
Worker Housing for Manufacturing Growth 32
commercial rates for utilities such as water and electricity, along with elevated
property taxes which exceed standard residential rates. Until recently, hostels
were subject to Goods and Services Tax (GST). However, in July 2024, the latest
GST circular
26
introduced an exemption for certain long-term accommodation
services. This exemption applies to accommodations priced at Rs. 20,000 or less
per person per month, provided the service is offered for a continuous period of
at least 90 days.
While the latest GST circular provides a huge relief, the difference in costs between
residential and commercial establishments are large as highlighted in figure 4.2
below.
Figure 4.2: Sample monthly operating costs per person of an accommodation facility
with 5,000 beds
Source: Tamil Nadu electricity tariff schedule, water tariff schedule, property tax rate schedule
These costs are then transferred to the workers in the form of higher rents, which
ultimately makes such accommodation unaffordable to them. Due to such high
costs, many private developers were opting out of building worker housing and
are instead only building housing for senior accommodation, housing for white-
collar working professionals, and student accommodations
27
.
26 Circular No. 228/22/2024-GST
27 India Infrastructure Report 2018: Making Housing Affordable SAFE Accommodation
Worker Housing for Manufacturing Growth 33 SAFE Accommodation
Worker Housing for Manufacturing Growth 34
CHAPTER
05
Economic
Unlocks SAFE Accommodation
Worker Housing for Manufacturing Growth 35
5. ECONOMIC UNLOCKS
5.1 The current gap
Building workers’ accommodation requires high capital costs even after regulatory
reforms. The risk is higher because of co-ordination problems – an industrial hub
will not develop solely because one private player puts up large scale workers’
accommodation. While such accommodation is a necessary component, it is
insufficient on its own, making it unattractive for private players. This will result
in the hub not coming up at all, which makes workers’ accommodation similar to
infrastructure. Hence, private developers have not been able to enter the market
for workers’ accommodation due to lack of financial viability. Our stakeholder
consultations reveal that an infrastructure investor would underwrite a large scale
workers’ accommodation project at a project IRR of 15-17%. As per our model,
achieving this IRR, the monthly lease rental per worker would be ~Rs. 4000 for
an average space of 80 square feet (inclusive of living and non-living spaces),
even after regulatory reforms. This constitutes ~30% of the salary of a worker
employed at minimum wages, which is unaffordable at those income levels
28
.
5.1.1 Stimulating private investment through government support
To attract private developers and investors while ensuring that the housing
units remain affordable for workers, government financial support may
be necessary, which would in turn create multiplier effects of encouraging
productive employment.
Some of the potential forms of government support for bridging the
economic gap include:
i. Viability gap funding – The government can bring down the cost of
construction so that builders get market rate of returns
ii. Operating rent – The government can announce an operating subsidy
to reduce the rent cost for workers
iii. Tax relief – The government can offer tax relief, deductions or credits
to set up and operate workers’ accommodation units
iv. Interest subvention – The government can subsidise market interest
rate to reduce the cost of borrowing for builders
v. Equity infusion – The government can inject capital in the form of
equity to generate attractive risk adjusted returns for worker housing.
(Ex: TNIFMC Model)
28 Stakeholder consultations SAFE Accommodation
Worker Housing for Manufacturing Growth 36
vi. Fiscal incentives – The government can exempt GST on construction of
workers’ accommodation to bring down the capex cost
vii. Soft loans – The government can provide loans with minimal or no
interest with extended grace periods
Figure 5.1 shows the impact of regulatory reforms and financial support on
construction cost and land from the government on monthly lease rental for
workers. Estimates based on the model suggests that regulatory reforms
will bring the overall cost down by 20%, and financial support from the
government further bring the cost down by 25%. This brings the monthly
lease rental that the workers will have to pay down to ~Rs. 3000 per month.
Figure 5.1: Lease rental per month per worker of a sample SAFE accommodation with
5,000 beds with a 15% project IRR
Source: FED Analysis
This amount might still be unaffordable for some workers. However,
consultations with industry stakeholders indicate a willingness to share a
portion of the workers’ rental costs, recognizing the benefits of reduced
attrition and enhanced productivity that result from providing stable and
accessible accommodations.
5.2 Limitations of existing government support
5.2.1 Overview of the Pradhan Mantri Awas Yojana - Urban 2.0 (PMAY-U 2.0)
Scheme
Pradhan Mantri Awas Yojana - Urban (PMAY-U)
29
Scheme was launched in
2015 by the Ministry of Housing and Urban Affairs (MoHUA) with a proposed
29 PMAY-U (Ministry of Housing and Urban Affairs) SAFE Accommodation
Worker Housing for Manufacturing Growth 37
outlay of ~ Rs. 2 lakh crore to curb urban housing shortage initially through
four verticals: In-situ slum redevelopment (ISSR), Credit Linked Interest
Subsidy (CLSS), Affordable Housing in Partnership (AHP), Beneficiary-led
individual house construction or enhancement (BLC). This scheme, with all
its verticals, is set to expire by December 2024.
In September 2024, Government of India launched Pradhan Mantri Awas
Yojana - Urban 2.0 (PMAY-U 2.0) Scheme with a tenure of 5 years starting
from 01.09.2024. This scheme has been designed based on the learnings
from PMAY-U 1.0 and has four verticals: Beneficiary led construction (BLC),
Affordable Housing in Partnership (AHP), Affordable Rental Housing (ARH)
and Interest Subsidy Scheme (ISS). SAFE Accommodation
Worker Housing for Manufacturing Growth 38
The benefits available under the scheme are as follows: -
Table 5.1: PMAY-U 2.0 Scheme details
Scheme Verticals
Subsidy per bed
(assuming 4 beds per EWS
unit)
Subsidy
payable to
Beneficiary led construction
Rs. 2.5 lakh per EWS unit is provided
to eligible families belonging to
EWS categories for individual house
construction/ enhancement (30 – 45 sqm
carpet area)
Rs. 62,500 per bed Beneficiary
Affordable Housing in Partnership (AHP):
Rs. 2.5 Lakh per EWS unit is provided under
two models: -
• Model 1 – Construction of unit(s) by
public sector agencies
• Model 2 – Private sector AHP projects
(includes ownership through market
purchase)
Additional TIG Grant of Rs 1000 per sqm
available
Upper ceiling on sale price to be decided by
Govt
Rs. 62,500 per bed
Additional TIG Grant
– Rs 7500 per bed (if
applicable)
Developer
Affordable Rental Housing (ARH)
This scheme will be implemented under
two models: -
• Model 1 – Converting existing Govt
funded vacant houses into ARH through
PPP
• Model 2 – Greenfield ARH housing
through PPP
Benefits include:
• 10% of total project area permissible for
commercial use
• Rs 5000 per sqm TIG grant
Upper ceiling on rent and annual escalation
to be decided by the Govt
Rs. 37,500 per bed TIG
Grant (if applicable)
Developer SAFE Accommodation
Worker Housing for Manufacturing Growth 39
Scheme Verticals
Subsidy per bed
(assuming 4 beds per EWS
unit)
Subsidy
payable to
Interest Subsidy Scheme:
Interest subsidy of 4.0% p.a. for a tenure
of 12 years with a maximum NPV of Rs.
1.5 lakh available to EWS / LIG / MIG
beneficiaries
Rs. 37,500 per bed Beneficiary
Source: PMAY – U 2.0 (MoHUA), Author’s analysis
Some components of PMAY – U 2.0 may be leveraged to develop SAFE
accommodation even though the subsidy offered under the scheme falls
short of bridging the economic gap. The grant available under AHP model
2, if made available for SAFE Accommodation, while retaining the elements
of ARHC vertical around renting can substantially reduce the incremental
burden on state exchequer.
5.2.2 Affordable Rental Housing (ARH) Scheme under PMAY - U
The ARH may be considered as the most relevant scheme for industrial
worker housing, since it is exclusively a rental housing scheme. Most
migrants typically relocate individually, seeking temporary lodging in
proximity to their workplaces. Given that they often move without their
families, their objective is not to settle permanently or purchasing homes in
the cities they migrate to, but rather to find convenient, short to medium-
term accommodation. However, the ARH component remains unchanged
from the original PMAY-U 1.0 framework. A closer analysis of the scheme
under PMAY-U 1.0 highlights a low level of private sector participation, as
detailed below.
As per the Management Information System (MIS) that is hosted on
MoHUA’s website, the average rent for the proposed projects under Model
1 of the ARHC project is just over Rs. 2,500 per month which falls within the
affordability range of industrial workers. However, the MIS is still unable
to provide accurate locations of the proposed projects, which is a critical
determinant of SAFE accommodation. Moreover, data shows that only 7%
of the proposed vacant houses have been converted into ARHC units (see
details in appendix, Table 6). The conversion rate also does not paint a
complete picture since there is no visibility on the occupancy of converted
houses. SAFE Accommodation
Worker Housing for Manufacturing Growth 40
In Model 2 of the ARHC scheme, the government provides certain benefits
to reduce the overall cost of constructing and operating ARHC units to
encourage Public-Private partnership (PPP). These benefits include:
i. Operating expenses: Residential rates charged for operating ARHCs
and exempting them from GST and income tax.
ii. Building and land use: Change of land use permission needed and
50% additional FAR free of cost.
iii. Government support: Loan provided at lower interest rate through
concessional window, and grant in the form of Technology Innovation
Grant (TIG) is provided for the use of innovative, sustainable, green &
disaster resilient technologies.
iv. Governance: Single window system for approval of design / drawings
and other statutory approvals within 30 days.
v. Infrastructure: Necessary trunk infrastructure like road, sanitation
services, water, sewerage, drainage, electricity etc. without any
additional cost.
While model 2 of the ARHC scheme seems ideal for the construction of SAFE
accommodation facilities, the scheme provides very limited financial support,
which is in the form of TIG. As a result, this model seems to have low uptake from
the private sector. In fact, as highlighted in table 5.2 below, just one state - Tamil
Nadu contributes to ~90% of sanctioned units.
Table 5.2: State/ UT-wise details of ARHC units sanctioned for construction by Public/
Private Entities under Model-2 of the Scheme:
Name of the City, State Name of the Entity Total Units
Sriperumbudur, Tamil Nadu SPR City Estates Pvt. Ltd. 18,112
Sriperumbudur, Tamil Nadu SPR Construction Pvt. Ltd. 3,969
Hosur, Tamil NaduTata Electronic Pvt. Ltd. 11,500
Chennai, Tamil Nadu
State Industries Promotion
Corporation of Tamil Nadu
18,720
Chennai, Tamil Nadu Chennai Petroleum Corporation Ltd. 1,040
Raipur, Chhattisgarh Indian Oil Corporation Ltd. 2,222
Kampur Town, Assam
Guwahati Refinery Indian Oil
Corporation Ltd.
2,222 SAFE Accommodation
Worker Housing for Manufacturing Growth 41
Name of the City, State Name of the Entity Total Units
Prayagraj, Uttar Pradesh Indian Oil Corporation Ltd. 1,112
Surat, GujaratMitsumi Housing Pvt. Ltd. 453
Chennai, Tamil Nadu SPR Construction Pvt. Ltd. 5,045
Nizampet, Telangana Sivani Infra Pvt. Ltd. 14,490
Total78,885
Source: Press Information Bureau, Delhi
To enable large-scale SAFE accommodation development, greater private sector
participation should be encouraged, while ensuring that monthly lease rentals
remain within the range of how much the workers are willing to pay. The next
chapter explores models through which SAFE accommodation facilities can be
established. SAFE Accommodation
Worker Housing for Manufacturing Growth 42
CHAPTER
06
Models For
Deveioping
SAFE
Accommodation SAFE Accommodation
Worker Housing for Manufacturing Growth 43
6. MODELS FOR DEVELOPING SAFE ACCOMMODATION
To address the need for affordable worker housing near industrial sites, a variety of
development models can be considered. This chapter outlines four primary models:
Government Owned and operated, Government Owned but privately operated, public-
private partnership (PPP), and privately owned and operated.
6.1 Overview of the 4 models
6.1.1 Model 1 – Government Owned and Operated
In this model, the government takes full responsibility for financing,
constructing and managing workers’ accommodations. These facilities are
managed directly by public housing authorities. If such facilities charge lower
rents, the maintenance of low rental costs is achieved by foregoing financial
returns on the project, facilitated through government budgetary allocations
for capital expenditure, operational expenditure, or a combination of both.
Table 6.1: Model 1 Specifications
ParametersModel Specifications
Government
participation
• Financing, construction and operation of workers’
accommodation units
Private sector
participation
• Limited to construction if at all
Off-take guarantee • May or may not able available from anchor industries
Type of model • Public procurement
Owner of asset / risk • Government / statutory entity
Construction • Private contractor / government on EPC basis
Operations and
Maintenance
• Government / statutory entity
Monthly lease rental • Determined / subsidised by the government.
Source: Working group discussions
This model faces challenges in scaling up due to the financial constraints
inherent in this approach. Building such accommodations at scale would
require a significant allocation of government funds, which might not be
feasible. This limits the government’s ability to replicate this model across
multiple regions or to meet the rapidly increasing workers’ accommodation
demand. SAFE Accommodation
Worker Housing for Manufacturing Growth 44
An example from this model includes the working women’s hostels
developed in Thozhi by the Tamil Nadu Working Women’s Hostel Corporation
Limited (TNWWHCL). These include 10 hostels offering 1,140 beds in total.
Additionally, SIPCOT’s Corporate Social Responsibility (CSR) funds were used
to build hostels for 400 men and 600 women in Nerupperichal and Tirupur.
These hostels are planned to be operated and maintained by TNWWHCL.
6.1.2 Model 2 – Government Owned and Privately Operated
This model involves government-funded construction of housing, with
private operators managing day-to-day operations and maintenance under
performance-based contracts. Like Model 1, this approach also faces capital
limitations, which prevent scalability.
Table 6.2: Model 2 Specifications
ParametersModel Specifications
Government
participation
• Financing and construction of workers’ accommodation
units
Private sector
participation
• Operation and maintenance of workers’
accommodation units
Off-take guarantee • May or may not be available from anchor industries
Type of model • O&M PPP model
Owner of asset/risk • Government / statutory entity
Construction • Private contractor / government
Operations and
Maintenance
• Private concessionaire
Monthly lease rental • Determined / capped by the government
Source: Working group discussions
Examples from this model include worker hostels in Irungattukottai
and Sriperumbudur, which were constructed and funded by SIPCOT.
These hostels are managed and maintained by a private concessionaire
under an operations and maintenance (O&M) agreement. As part of the
arrangement, the concessionaire shares 10% of the rental revenue with
SIPCOT. This model is similar to the Toll Operate Transfer (TOT) model used SAFE Accommodation
Worker Housing for Manufacturing Growth 45
in road infrastructure projects. Private operators are involved in managing
the asset and sharing a portion of the revenue — rental income in workers’
accommodation or toll collections in road projects — with the government.
Another example of this model would include the ‘Scheme for Special
Assistance to States for Capital Investment 2024-25’, where Rs. 5,000 crore
is earmarked for constructing working women’s hostel in PPP model. The
Scheme states that under the model, the ownership of the hostel would be
vested with the State Government, while operational and maintenance will
rest with a private party. The scheme also states the land for the hostels
would be made available by the state government free of cost.
6.1.3 Model 3 – Public-Private Partnership (PPP)
The PPP model shares responsibilities between the government and private
sector, with the government often providing land and / or subsidies and
private entities handling construction and management. This approach
enables cost-sharing and scalability, making it ideal to cater to high-demand.
Table 6.3: Model 3 Specifications
ParametersModel Specifications
Government
participation
• Viability gap funding (VGF) proposed under the
“Financial support to Public Private Partnerships in
Infrastructure” scheme of GoI
Private sector
participation
• Financing, construction, maintenance and operations of
workers’ accommodation units
Off-take guarantee
• Concessioning Authority (with back-to-back guarantees
from anchor units to the tune of at least 50% capacity)
Type of model • Design, Build, Finance, Operate, and Transfer (DBFOT)
Owner of asset / risk
• Government / statutory entity (with concession rights
to PPP developer). Optimal allocation of risks to both
parties under PPP framework
Construction
• Private concessionaire selected through open
competitive bidding
Operations and
Maintenance
• Private concessionaire
Monthly lease rental
• Capped at a pre-determined rate estimated as per
scheme guidelines and specified in the concession
agreement (annual escalation is also predetermined)
for the duration of the concession
Source: Working group discussions SAFE Accommodation
Worker Housing for Manufacturing Growth 46
In this model, the government will run a competitive bidding process to
determine to actual VGF amount which would be made available pari passu
equity and debt funds. The government will also identify a potential site for
the project, undertake feasibility study (including financial feasibility) and
run the bidding process.
An example of this model would include the central grant for workers’
accommodation under PPP available under PM Mitra Scheme. However,
currently, no VGF scheme is operational for large scale workers’
accommodation.
6.1.4 Model 4 – Privately Owned and Operated
Under this model, private developers independently finance, build, and
manage workers’ accommodations, sometimes with minimal government
support. This model is the most efficient for rapid asset creation.
Table 6.4: Model 4 Specifications
ParametersModel Specifications
Government
participation
Limited to capital subsidy on construction if at all
Private sector
participation
Own, finance, construct, operate, maintain workers’
accommodation units
Off-take guarantee As agreed with user industries
Type of model Private Procurement
Owner of asset / risk Private landowner / developer
Construction Private EPC contractor
Operations and
Maintenance
Private service provider
Monthly lease rental Market determined
Source: Working group discussions
There are numerous cases of small to medium sized captive workers’
accommodation provided by private entities. For example, textile and
apparel firms such as Kittex in Kerala, Vardhman and Trident in Madhya
Pradesh provide accommodation for their workers. In industrial areas of
cities, some employers used to provide tenements for factory workers, such
as in the chawls of Mumbai and Ahmedabad
30
. However, none of these have
come up at a large scale.
30 India Infrastructure Report 2018: Making Housing Affordable SAFE Accommodation
Worker Housing for Manufacturing Growth 47
Table 6.5: Overview of the 4 models for developing workers’ accommodation
Source: Working group discussions
While Model 3: Public Private Partnership (PPP) is the most scalable model
to provide affordable workers’ accommodation. SAFE Accommodation
Worker Housing for Manufacturing Growth 48
6.2 Enabling market led models of developing workers’ accommodation
6.2.1 Leveraging the Viability Gap Funding (VGF) scheme for Model 3: Public-
Private Partnership (PPP) in Workers’ accommodation
The Public Private Partnerships in Infrastructure Viability Gap Funding (VGF)
scheme
31
was introduced by the Government of India in 2006 to provide
financial support to Public-Private Partnership (PPP) projects in infrastructure
sectors that are essential for economic development but face financial
viability challenges. Over time, the scheme has been revised and expanded
to include social sectors like education and health, thereby addressing
critical gaps in areas essential for economic and social development. While
the list of eligible sectors for the scheme currently applicable does not
include affordable rental housing, the Union Budget 2024-25 announcement
on affordable rental housing presents an opportunity to get this sector
included.
Key features of the VGF Scheme include:
i. Financial Support: Grants are provided to cover up to 20% of the total
project cost for infrastructure projects and up to 40% for social sector
projects like education and healthcare.
ii. Competitive Bidding: Private sector entities are selected through open,
competitive bidding to ensure transparency and efficiency.
iii. Government Collaboration: Additional funding support of up to
20% (infrastructure) or 40% (social sectors) may be provided by the
sponsoring Central Ministry or State Government.
Application to Workers’ accommodation in a PPP Model:
Model 3: Public-Private Partnership (PPP) can effectively leverage the VGF
Scheme to develop SAFE accommodation, addressing the affordability and
financial viability challenges of such projects. Here’s how the scheme can
be applied:
i. Government Contribution: The government provides VGF support
to reduce the capital cost of building workers’ accommodations. This
reduces the financial risk for private developers, encouraging their
participation in the project.
ii. Private Sector Role: The private developer, selected through competitive
bidding, is responsible for financing, constructing and operating the
31 Public Private Partnerships in Infrastructure Viability Gap Funding (VGF) Scheme SAFE Accommodation
Worker Housing for Manufacturing Growth 49
accommodations under a concession agreement. This ensures the use
of private sector expertise for efficient project implementation and
management.
iii. Revenue Generation: User charges (lease rentals from workers) are
structured to ensure affordability while providing an attractive IRR
for the private developer. The VGF helps bridge the gap between the
revenue generated and the financial viability of the project.
iv. Ensuring Affordability: By capping lease rental as part of the project
design, the scheme ensures that workers’ accommodations remain
affordable. The government’s financial support compensates for the
reduced revenue from capped charges. SAFE Accommodation
Worker Housing for Manufacturing Growth 50
CHAPTER
07
Recommendations
And
Way Forward SAFE Accommodation
Worker Housing for Manufacturing Growth 51
7. RECOMMENDATIONS AND WAY FORWARD
The SAFE Accommodation initiative seeks to address significant challenges in providing
affordable and accessible housing for India’s industrial workforce. This report provides a
comprehensive overview of the regulatory and economic barriers that prevent large scale
worker dormitories to be developed for industrial workers.
One of the primary obstacles is inflexible zoning laws, which prohibit residential
developments in industrial zones unless explicitly permitted, preventing workers’
accommodations near factories and forcing employees to live far from their workplaces.
This increases commuting costs and fatigue, impacting productivity and retention.
Additionally, conservative building bye-laws, such as low FAR and other inefficient land-
use regulations, limit the potential to construct high-capacity housing on available land.
Operating costs further escalate due to inconsistent hostel regulations across states,
with some accommodations being classified as commercial establishments, leading to
higher property taxes and utility rates. These factors deter private sector participation,
as high capital costs and low returns make large-scale projects financially unviable. As a
result, the limited availability of quality workers’ accommodation, particularly for women,
hampers migration, reduces workforce participation and weakens the competitiveness of
the manufacturing sector.
The following section provides a roadmap to create scalable and sustainable large scale
SAFE accommodation facilities across the country.
7.1 Summary of recommendations
Our recommendation is to launch a SAFE Accommodation Scheme that enables
viability gap funding for SAFE Accommodation projects from the central
government, available to states conditional on Regulatory reforms.
7.1.1 Salient aspects of the scheme:
i. Classification of SAFE Accommodation
SAFE accommodation should be classified as a distinct category of
residential housing. This classification would ensure:
• GST Exemption: According to the GST circular
32
, accommodation
services are exempt from GST if the value of supply is `20,000 or
less per person per month, provided the accommodation is supplied
for a minimum continuous period of 90 days. The understanding of
the working group on SAFE accommodation was that it meets these
criteria, and therefore should be covered under this exemption.
32 Circular No. 228/22/2024-GST SAFE Accommodation
Worker Housing for Manufacturing Growth 52
However, this may be clarified by the appropriate authority to
ensure that there is no ambiguity in this matter.
• Residential Rates: Application of residential property tax, electricity,
and water tariffs to reduce operating costs.
• Exclusive Focus on Workers: Long-term, dormitory-style
accommodations designed exclusively for industrial workers,
located near their workplaces.
• Environment Clearance Exemption: The Ministry of Environment,
Forest and Climate Change (MoEF&CC) on November 07, 2024,
issued a draft notification No. S.O. 4844(E) to amend item 8 of an
older notification No. S.O.1533(E), dated September 14, 2006, related
to Environmental Clearance requirements for various building
construction projects. The draft specifies that certain projects or
activities including industrial sheds, schools, colleges, and hostels
for educational institutions, are excluded from these requirements.
SAFE accommodation projects should also be included in this list of
exempted projects.
ii. Financial support envisaged from the Centre
• Provision of Viability Gap Funding to bridge the financial viability
gap for developers building SAFE accommodation on government
owned land by leveraging the VGF scheme of Department of
Economic Affairs (DEA):
»Quantum of VGF: Provide up to 30% of the total project cost
(excluding land) through VGF, with 20% contributed by the
Department of Economic Affairs (DEA) and 10% by the sponsoring
nodal ministry. Additionally, State Governments may provide a
VGF up to 10%. (VGF of up to 40% of the total project cost can
be provided as per the VGF scheme of DEA). The VGF can also
be leveraged to retrofit / upgrade existing brownfield workers’
accommodation facilities.
»Competitive Bidding: Determine VGF support through a
transparent and competitive bidding process.
iii. Conditions to be met by states for availing VGF support under the
proposed scheme
Specific criteria to qualify for VGF support through S.A.F.E.
Accommodation Scheme: SAFE Accommodation
Worker Housing for Manufacturing Growth 53
• Zoning Reforms: Allow mixed land use in industrial zones or
designate SAFE accommodation as a permitted use in industrial
zones to enable unrestricted construction.
• Building Regulation Reforms:
»FAR should be liberalised such that building height can be
decided based on cost efficiency considerations (as per the
model discussed with developers, at least construction of 5
floors should be enabled).
»GCR for the building may be more than 60% of the total area.
Parking, amenities and setbacks are to be included in the
remaining open area (<40% of total area). These regulations
should be revised regularly to enable improvements in cost
effectiveness.
7.1.2 Amendment to the VGF Scheme
Annexure 3 of the Viability Gap Funding (VGF) Scheme of DEA to be amended
to include Affordable Rental Housing in the list of eligible sectors to enable
SAFE accommodation facilities to avail the scheme. SAFE Accommodation
Worker Housing for Manufacturing Growth 54
7.2 Way forward
A pilot phase may be launched in selected champion states to prove the concept.
The pilot will seek to address challenges on:
• Building developer and investor confidence
• Building state capacity to identify, design, tender and implement SAFE
accommodation projects
• Enhancing speed of creating large scale SAFE accommodation facilities in the
country
The pilot phase of the scheme shall be for a period of 2 years. Upon satisfactory
offtake of the pilot scheme, the SAFE accommodation scheme will be rolled
out for a period of 4 years, which can be extended by another 4 years as per
requirement.
To ensure sustained focus and coordinated action, “Mission SAFE Accommodation”
will be institutionalized. This will involve setting up a dedicated Project Management
Unit (PMU) within the Ministry of Housing and Urban Affairs (MoHUA) to oversee
the initiative. The PMU will coordinate central and state-level efforts, monitor
progress, address challenges and suggest policy and implementation adjustments.
Table 7.1: Summary of roles and responsibilities

Source: Working group discussions SAFE Accommodation
Worker Housing for Manufacturing Growth 55 SAFE Accommodation
Worker Housing for Manufacturing Growth 56 SAFE Accommodation
Worker Housing for Manufacturing Growth 57
ANNEXURE-1 SAFE Accommodation
Worker Housing for Manufacturing Growth 58 SAFE Accommodation
Worker Housing for Manufacturing Growth 59
ANNEXURE-2
Representatives in the Working Group of S.A.F.E. Accommodation
i. Mr. Ishtiyaque Ahmed, Senior Adviser, NITI Aayog- Chair
ii. Mr. Solomon Arokia Raj, Joint Secretary, D/o Economic Affairs
iii. Ms. Anuja Bapat, DDG, M/o MSME
iv. Mr. Kuldip Narayan, Joint Secretary & MD (Housing for All), MoHUA
v. Mr. PS Reddy, Adviser, NITI Aayog (co-opted)
vi. Mr. Akhilesh Kumar, DDG, M/o Textiles
vii. Ms. Pratima Singh, Director, DPIIT
viii. Mr. Nirmod Kumar, Director, MeitY
ix. Mr. Piyush Doshi, Operating Partner, FED
x. S Krishnan, Head-Strategy & Partnerships, Janaagraha
xi. Dr. K. Senthil Raj, MD, SIPCOT, Govt of Tamil Nadu
xii. Ms. Kumud Chaudhary, District Economics and Statistics Officer, Govt. of UP
xiii. Mr. Upendra Kumar Gupta, Deputy Adviser, NITI Aayog- Member Secretary SAFE Accommodation
Worker Housing for Manufacturing Growth 60
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Worker Housing for Manufacturing Growth 63
APPENDIX
Table 1: Building size for 5,000 accommodation beds
Building size #
Area
(sq ft)
Total
Area
(sq ft)
Remarks
Dormitory rooms 834 226 1,88,521
6 workers per dorm, 38 sq ft per
person
Core living area (in
sq meters)
1,88,521
Common
Washrooms Toilets
16771760 71,760
One common toilet / 30 beds
measuring 400 sq ft 10 baths, 10
WCs + washbasins
Waiting Area 1 3250 3229 65 sq ft for every 100 persons
Administrative Room 1 2150 2153 43 sq ft for every 100 persons
Common Room 1 5400 5382 10.8 sq ft / 10 persons
Dining Room/Hall 1 23333 17,940
14 sq ft / person and capacity to
accommodate 1/3rd population
Kitchen/Pantry 1 8000 8,073
30% of the total area of the Dining
Space or @ 1.6 sq ft per person,
whichever is greater
Wardens living
quarters
25 97 2422
1 warden for 200 people, 97 sq ft
per room
Sick room50 103 5167
1 room for 100 people, 103 sq ft
per room
Non-living area (in
sq ft)
1,16,126
Total (in sq ft) 3,04,646
Common Areas
(Circulation area &
walls )
91,394 30% of living + non-living areas
Total Built up area
(in sq ft)
3,96,040
Area per person
(living + non-living)
80 SAFE Accommodation
Worker Housing for Manufacturing Growth 64
Table 2: Building cost for 5,000 accommodation beds
Building cost
% of
construction
cost
Total
cost
(per sq
ft)
Remarks
Cost of construction
(per sq ft)
` 1,865
Based on CPWD Plinth Area
Rates 2023
Water supply &
Sanitary installation
8% ` 149
Electrification 8% ` 149
Contingencies 3% ` 56
Architect’s fees and
approvals
6% ` 114
Cost of furniture and
fixtures
10% ` 187
External
development
20% ` 373
Sewage treatment plant, Rain
water harvesting, internal roads,
street lighting, landscaping,
compound wall
Total rate (per sq ft) ` 2,893 Based on 2023 CPWD rates
Contractors margin 15% ` 434
Total construction
rate
` 3,327
Estimated building
area
3,96,040
Total cost of
building + external
infrastructure
(in Rs. Cr)
~` 132
Capex per bed (In Rs.
Lakhs)
~ ` 2.6 SAFE Accommodation
Worker Housing for Manufacturing Growth 65
Table 3: Cap-ex and opex assumptions
Particulars AssumptionsRemarks
Land cost per acre 1 crore
Land needed for 5,000
accommodation beds
approx. 4
acres

Duration of the model 30 years
Capex calculations
Amount in
Rs. Cr
Remarks
Land4
Civil Works56
Electrification 4
Water Supply and Sanitary
Installation
4
Others3
Furniture and Fixtures 5
Opex calculations
Amount in
Rs. Cr
Remarks
Water Cost0.2Rs 150 / kiloliter
Electricity Cost 3.5Rs 8.7 / kwh
Property Tax0.6Rs 12 / sqft
Manpower Cost2.7
60 guards, 40 working staff, 20
wardens, 5 administrative mangers
Maintenance Cost (in %) 0.5% SAFE Accommodation
Worker Housing for Manufacturing Growth 66
Table 4: Overview of bye-laws studied
State / city
Manufacturing
clusters
Building Bye-Laws
Accommodation
type
Maharashtra MIDC, Pune MIDC DC Rules, 2009 Residential
PunjabLudhiana
Punjab Building Rules,
2021
Group housing
Uttar Pradesh
Yamuna
expressway,
Noida
The New Okhla
Industrial Development
Area Building
Regulation, 2010
Group housing
Odisha Bhubaneshwar
Odisha Development
Authorities (Planning
and Building Standards)
Rules, 2020
Low risk buildings
Karnataka
Kolar,
Narasapura
Kolar Revised
Masterplan 2021
Residential
GujaratDholera
Gujarat Comprehensive
General Development
Control Regulations -
2017
Residential
Madhya
Pradesh
Vistara
Township,
Indore
Madhya Pradesh Bhumi
Vikas Rules, 2012
Group housing
DelhiOkhla
Unified Building Bye-
laws for Delhi 2016
Group housing
Tamil Nadu
Sriperumbudur,
Kanchipuram
Tamil Nadu Combined
Development and
Building Rules, 2019
Non High Rise
Buildings
Telangana
Maheshwaram,
Rangareddy
Andhra Pradesh
Building Rules, 2012
Non-high rise
building - group
development SAFE Accommodation
Worker Housing for Manufacturing Growth 67
Table 5: State wise building regulations (1/2)
State / City FARGCR
Setback (average
of all sides and
scenarios w.r.t
approach road)
MIDC
(Maharashtra)
1 Not mentioned
(assumed 100%)
3.75m
Ludhiana
(Punjab)
2.5 (FAR depends
on approach road,
taken an average)
30% of Site area 6m
Noida (Uttar
Pradesh)
2.75 35 - 40% 6m
Bhubaneshwar
(Odisha)
2 Not mentioned for
low risk buildings
(assumed 100%)
2.5m
Kolar
(Karnataka)
1.75 40% 6m
Dholera
(Gujarat)
1.2 Not mentioned for
residential zone
(assumed 100%)
5m
Indore (Madhya
Pradesh)
2 (Based on density,
we have considered
highest density)
35% (Based on
density, we have
considered highest
density)
8m
Okhla (Delhi) 2 40% 12.75m
Sriperumbudur
(Tamil Nadu)
2 Not mentioned
for non-high rise
building (assumed
100%)
4.20m
Rangareddy
(Telangana)
NA (assumed to be
unlimited)
Not mentioned
(assumed 100%)
4.5m SAFE Accommodation
Worker Housing for Manufacturing Growth 68
Table 5: State wise building regulations (2/2)
State / CityAmenityParking
MIDC
(Maharashtra)
10% Not mentioned
Ludhiana
(Punjab)
Minimum 25% of site area
1 ECS per Dwelling Unit of
90sqm + Additional 10 %
guest parking
Noida (Uttar
Pradesh)
15%
One ECS / parking space per
80sqm of permissible FAR
area
Bhubaneshwar
(Odisha)
Not mentioned beyond setbacks
30% parking area to be
provided as % of total built
up area towards FAR
Kolar
(Karnataka)
Minimum of 10% of the land shall
be reserved for park & Open
space
Min car parking space : 2.50
m x 5.50 m
2 tenements each having a
carpet area of 101 to 200
sq.m.
Dholera
(Gujarat)
10% of the area of
Building
20% of Total Utilised FSI
Indore (Madhya
Pradesh)
Minimum open area - 10% of
layout
Covered parking may
be provided as per the
requirements of the project
Okhla (Delhi)
Rate of 0.6% of permissible FAR
shall be allowed free from FAR to
cater to community need
2.0 ECS/100 sq.m built up
area
Sriperumbudur
(Tamil Nadu)
Not mentioned
Residential buildings in
Panchayat areas - 1 car space
for every 100 sq.m.
Rangareddy
(Telangana)
Minimum of 10% of site area
30-25% of the total build up
area
ANNEXURE-1 SAFE Accommodation
Worker Housing for Manufacturing Growth 69
Table 6: State / UT-wise progress under Model 1 of the ARH scheme under PMAY 1.0
Sl No.State
No. of Houses
available for
ARHCs
Converted into
ARHCs
Conversion
1 Arunachal Pradesh 752
2 Chandigarh 2,1952,195 100%
3 Delhi 29,112
4 Gujarat 4,4142,467 56%
5 Haryana 2,545
6 Himachal Pradesh 314
7 Madhya Pradesh 364
8 Maharashtra 32,345
9 Nagaland 664
10 Rajasthan 4,884480 10%
11 Uttar Pradesh 5,232
12 Uttarakhand 377170 45%
13 Jammu & Kashmir 336336 100%
Total83,5345,648 7%
Source: Ministry of Housing and Urban Affairs Designed by: SAFE Accommodation
Worker Housing for Manufacturing Growth 71

SAFE Accommodation: Worker Housing for Manufacturing Growth