State launches ‘Shramik Nivasa’ industrial housing policy
Karnataka rolls out the ‘Shramik Nivasa’ policy, aiming to build affordable housing near industrial units for workers.
BENGALURU: In a major step to improve living standards for manufacturing workers, the Karnataka government has officially rolled out the innovative ‘Shramik Nivasa’ housing policy. Unveiled by state leaders, the program aims to construct 30,000 residential units during its first phase, bringing affordable shelter directly close to industrial workplaces.
State officials noted that the initiative is designed to spare factory employees from exhausting daily commutes across congested urban roads. By providing comfortable and secure accommodation near industrial hubs, the government expects to elevate worker well-being while significantly boosting overall productivity and supporting regional economic growth.
The policy mandates that participating manufacturing enterprises build housing units strictly within the boundaries of industrial plots allotted by the Karnataka Industrial Areas Development Board. Enterprises can construct three distinct residential typologies tailored to workforce needs: compact dormitories equipped with beds and lockers, single-bedroom apartments, and double-bedroom family units. Essential utilities including water and electricity will be supplied to these residential quarters at standard industrial tariff rates rather than commercial prices. Furthermore, units will be made available to permanent personnel either completely free of charge or at highly subsidized, affordable monthly rents.
To incentivize widespread industrial participation, the administration has introduced a generous, tiered capital subsidy model. Companies arranging housing for 100 employees will receive a grant of ₹1 crore, while those accommodating 1,000 workers will qualify for a ₹10 crore subsidy. For large-scale facilities housing up to 2,500 workers, a maximum financial assistance ceiling of ₹25 crore has been established per company. These capital subsidies will be disbursed in three equal annual installments beginning from the date workers officially occupy the premises.
The initial phase targets housing for up to 10,000 workers annually, with provisions to evaluate higher-capacity proposals in subsequent cycles. Large-scale manufacturing industries have been formally urged to leverage the grants to modernize their operational campuses, ensuring that hardworking laborers enjoy a peaceful, balanced lifestyle without the daily burden of long-distance travel.
