NITI Aayog’s Assessment

Niti Aayog moots policy measures to develop workers’ accommodation around factories

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From UPSC perspective, the following things are important :

Prelims level: SAFE Initiative

Why in the News?

NITI Aayog has proposed a set of policy interventions to enable the creation of mega workers’ accommodations near factories under its initiative called S.A.F.E (Site Adjacent Factory Employee) Accommodation-Worker Housing for Manufacturing Growth.

About the S.A.F.E. (Site Adjacent Factory Employee) Initiative

Overview
  • S.A.F.E. initiative by NITI Aayog aims to provide affordable dormitory-style housing for workers near industrial areas, especially migrant laborers, including women.
    • The housing will include essential amenities like water, electricity, and sanitation, improving workers’ living conditions and enhancing productivity.
Key Features
  • Location: Housing will be near industrial hubs to minimize commute time.
  • Basic Amenities: Includes water, electricity, and sanitation.
  • Ownership: Non-transferable accommodations, strictly for worker use, ensuring worker welfare.
Significance
  • Worker Welfare: Improves living standards and promotes gender inclusivity.
  • Productivity: Reduces commute time, enhancing productivity and reducing attrition.
  • Economic Growth: Attracts global investors and supports India’s manufacturing growth target of 25% GDP by 2047.
Key Recommendations
  • Tax & GST Benefits: Reclassification for tax exemptions to make the initiative financially viable.
  • Zoning Laws: Amendments for mixed-use developments to integrate worker housing.
  • Viability Gap Funding (VGF): 30%-40% of project cost for financial support.
  • Environmental Clearances: Streamlining for faster approvals.
  • Financial Support: Public-private partnerships for development and management.

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