Karnataka will build 30,000 homes in the first phase of its Shramik Nivas scheme to provide affordable accommodation close to manufacturing workplaces, Industries Minister M.B. Patil said on November 14. The programme will offer dormitories, one-bedroom homes and two-bedroom homes for eligible permanent employees of industrial units.
According to a press statement issued by Patil, the state government wants to reduce the daily travel burden on industrial workers and provide them with better-quality housing near their workplaces. The minister said shorter commutes could also improve productivity in manufacturing units and contribute to the state economy.
Under the scheme, industrial companies can construct Shramik Nivas facilities on plots already allotted to them and receive government assistance. Companies providing accommodation for 100 employees will be eligible for a subsidy of ₹1 crore, while facilities for 1,000 employees can receive ₹10 crore. The subsidy rises to ₹25 crore for accommodation provided to 2,500 employees.
The proposed accommodation will include dormitories of up to 10 square metres per worker, with an individual bed, table, cupboard and locker. Dormitory facilities will also have shared kitchens, bathrooms and toilets. The scheme permits the construction of 30-square-metre one-bedroom homes and 60-square-metre two-bedroom homes.
The accommodation is to be provided either free of cost or at affordable rents, depending on the arrangement adopted by the industrial unit. Water and electricity will be supplied to these facilities at the rates applicable to industries, according to the minister’s statement.
Eligibility is limited to permanent employees of industrial companies. The government assistance will be released in three instalments over three years after workers begin living in the dormitories or homes. This links the subsidy to the actual occupation of the accommodation rather than only to its construction.
The structure of the scheme places industrial companies at the centre of delivery. They will identify the workers to be housed, use their allotted land where applicable and operate or facilitate the accommodation. The government’s role, as described in the announcement, is to provide financial support according to the number of employees served.
The programme addresses a recurring urban and industrial challenge: workers often live away from employment zones and travel long distances to reach factories. The announcement does not provide a district-wise target, an overall budget, a construction deadline or details of the application and approval process for participating companies. Those implementation details will determine how quickly the 30,000-home target translates into occupied accommodation.
Patil urged industrial organisations to make use of the scheme. The next operational steps are expected to involve participation by eligible companies and the construction of the approved dormitories and homes on industrial plots, with subsidy payments beginning after workers move into the facilities.
