Free Site Rajiv Gandhi Housing Scheme (RGRHCL) – Latest Update for Bengaluru Urban Poor (2025)
The Rajiv Gandhi Housing Corporation Limited (RGRHCL) continues its mandate to provide affordable housing to Bengaluru’s urban poor through its flagship initiative—the “One Lakh Multi-Storey Housing Scheme.” This guide presents a comprehensive 3,000‑word breakdown of the scheme’s current status, challenges, subsidy details, application process, and where it stands today, based on the latest official data.
Overview of RGRHCL and Its Mission
Rajiv Gandhi Housing Corporation Limited (RGRHCL) was established to fulfill the vision of “Housing for All,” particularly focusing on economically weaker sections (EWS), BPL families, and marginalized communities. The corporation operates through multiple schemes under its umbrella such as Basava Vasati, Dr. B.R. Ambedkar Niwas, Ashraya Yojana, Devaraj Urs Housing, and the flagship One Lakh Housing Scheme for Bengaluru Urban.
(karnatakabindu.com)
RGRHCL leverages digital tools like Ashraya Portal and GRUHASOFT for transparent beneficiary selection and project tracking. GIS-based mapping ensures fair land utilization and minimizes duplication.
(karnatakabindu.com, eAuction India)
Latest Status: Construction and Handover
Central Figures (2025 Update):
- One Lakh Housing Scheme (Bengaluru Urban): Out of the 100,000 targeted units, approximately 49,000 housing units are under construction in G+3 to G+14 multi-storey buildings.
- Completed Units: Only 4,561 units have been completed as of April 2025.
- Units Nearing Completion: An additional 4,030 units are nearing completion. The rest remain under construction.
- Total Expenditure to Date: ₹2,074.68 crore (end of Dec 2024)
(The New Indian Express)
This indicates a slow progress rate. Despite being announced in 2016, nearly a decade later, no house has been handed over to beneficiaries. The government now plans to utilize public–private partnerships (PPP) to accelerate completion.
(The New Indian Express)
Development Challenges
Several structural and administrative challenges have impeded implementation:
- Budget Shortfall: The state has yet to collect beneficiary contributions worth ₹2,013 crore for 52,189 units; only ₹134 crore has been received thus far. The Chief Minister has requested ₹2,168 crore in funding to complete these units.
(Sahil Online, The News Mill) - Selection Stagnation: Only 1.8 lakh beneficiaries have been selected across all segments—just 26% of targets. Urban areas like Bengaluru have registered virtually no progress in beneficiary selection.
- Coordination Hurdles: Land acquisition, beneficiary contributions, and approval delays have undermined on-ground execution.
These obstacles underscore the need for improved governance and administrative reform.
Subsidy Structure and Cost Breakdown
Here’s how financial burden is shared within the scheme:
- Projected Cost per Unit (2022): Around ₹10.5 lakh, including government subsidy
- Current Escalated Cost (2024): ₹11.2 lakh per unit
- Subsidy Distribution:
- State & Central subsidy: Varies between ₹3–4.75 lakh
- General Category Beneficiary Contribution: Around ₹8.5 lakh
- SC/ST Beneficiary Contribution: ₹7.7 lakh
(The New Indian Express)
This steep contribution continues to pose financial challenges for low-income families, especially given their limited bank credit score.
Public–Private Partnership (PPP) Model
To address execution delays, RGRHCL is moving towards a PPP model:
- Land Ownership: RGRHCL retains the land.
- Builders: Responsible for constructing units on the designated land.
- Sharing Model: A portion of units for poorer households; private builders develop the rest.
- Feasibility Study: Infrastructure Development Corporation Karnataka (IDCK) is preparing a feasibility report for implementation at multiple sites.
(The New Indian Express)
PPPs could accelerate progress and expand delivery capacity, especially in high-density urban settings.
Beneficiary Data and Application Status
According to data published in late 2024:
- 34,632 applications have been received for subsidized Bangalore housing.
- 3,060 applicants have already paid a ₹1 lakh deposit.
- Housing types include 38,403 units of 1 BHK and 8,096 units of 2 BHK, amounting to ₹4,476 crore in total estimated construction cost.
- Construction uses monolithic shear-wall technology, enabling faster building.
- 290 acres of reclaimed encroached land have been allocated for housing across 45 locations in Bengaluru.
(Times Property)
Testimonial: A vegetable vendor beneficiary expressed that owning a home has transformed her life—giving her security and social dignity.
(Times Property)
7. Application Procedure (Using Official Ashraya Portal)
Eligibility Criteria:
- Resident of Karnataka
- BPL, EWS, SC/ST, OBC priority
- No existing pucca property anywhere
- Proper documentation: Aadhaar, BPL card, income proof, land or allotment proof
How to Apply:
- Visit Ashraya Portal: ashraya.karnataka.gov.in
- Register with Aadhaar and mobile number
- Fill in family, income, and address details
- Upload required documents
- Submit and receive an acknowledgment number
- Application can also be filed offline via CSCs, Gram Panchayats, or Urban Local Bodies
Selection Process:
- Document verification by local authorities
- GIS-based site validation
- Computerized beneficiary selection using GRUHASOFT
- Direct benefit transfer in phases
(karnatakabindu.com, eAuction India)
Housing Scheme Portals and Resources
- Ashraya Portal: Central hub for application and status tracking
- RGRHCL Official Website: For scheme overview and news
- District Urban Local Bodies: For offline assistance and form submissions
(eAuction India, karnatakabindu.com) - Urban Inequality: Bengaluru has a large population of economically weaker migrant families without housing.
- Social Impact: Ownership of a permanent house boosts socio-economic stability.
- Inclusive Development: These schemes foster inclusive growth by making cities habitable for all sections.
- Economic Resilience: Multi‑storied housing frees up land and promotes structured urban expansion.
Challenges and Reform Needs
- Financial Burden: High beneficiary contribution hurdles affordability.
- Slow Execution: Construction and handover timelines severely delayed.
- Beneficiary Support: Accessing bank loans remains difficult for low-income applicants.
- Administrative Gaps: Delayed land conversion and contractor accountability remain concerns.
- Monitoring: Better real‑time monitoring mechanisms and grievance redressal needed.
What the Future Holds
- Accelerated Rollout via PPPs: Leveraging private sector capacity can fill gaps quickly.
- Faster Funding Approvals: Clearing pending funds and streamlining disbursement can boost progress.
- Beneficiary Credit Support: Extending micro-loans and bank partnerships can ease the contribution burden.
- Urban Expansion Planning: Linked urban infrastructure is essential alongside housing development.
- Strong Monitoring Framework: Full adoption of digital tools like Ashraya and GRUHASOFT ensures transparency.
Click Hear to Apply
The Rajiv Gandhi Housing Scheme in Bengaluru is a vital effort toward inclusive urban development. Despite progress in building over 49,000 units and recovering 290 acres of needed land, the delivery still falls short of targets. Going forward, accelerated implementation, PPP engagement, enhanced funding, and robust beneficiary support are critical to fulfilling the promise of affordable housing for Bengaluru’s urban poor.