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Scheme for Promotion of Affordable Rental Smart Housing (SPARSH 2.0): Construction and Redevelopment Incentives
The scheme aims to encourage affordable rental housing development. Through this scheme, Floor Space Index benefits and regulatory relaxations are provided to eligible housing projects.
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Source: myScheme.gov.in ↗Last verified: 19 Aug 2026·YojnaGuru is not affiliated with or endorsed by any government body
About This Scheme
The scheme Scheme for Promotion of Affordable Rental Smart Housing (SPARSH 2.0) implemented through verticals Incentivising the development or redevelopment of housing complexes and residential spaces for urban poor as SPARSH 2.0 housing complexes by relaxing construction norms for such complexes by the Labour & Employment Department, UT Administration of Dadra and Nagar Haveli and Daman and Diu aims to encourage development and redevelopment of affordable rental housing infrastructure. Through this scheme, additional Floor Space Index benefits, additional ground coverage, commercial utilisation relaxations, and regulatory relaxations are provided to eligible housing complex developers and owners. It also mandates the reservation of dwelling units for beneficiaries of the Economically Weaker Section. Housing complexes registered under the scheme become eligible for further scheme incentives and benefits. The registration process also ensures annual monitoring and compliance verification. SPARSH 2.0 is applicable across Daman, Dadra and Nagar Haveli, and Diu for the period from 2022 to 2027. > Objectives: - To address the vision of Aatma Nirbhar Bharat Abhiyan by creating a sustainable ecosystem of affordable rental housing solutions for workers in industries, construction sites, and other weaker sections. - To achieve the objective of Housing for All by promoting affordable rental housing for workers and laborers. - To create a conducive environment by incentivising public and private entities to invest in affordable rental housing stock. - To increase the productivity of industries by improving the health and well-being of workers. - To reduce the financial burden on workers due to treatment costs and wage loss. - To increase the happiness and quality of life of workers. - To harmonise the Affordable Rental Housing Complexes (ARHC) Scheme guidelines with the SPARSH Scheme.
Benefits
For any housing complex to apply under the SPARSH 2.0 scheme, the proposed construction should either be registered under the ARHC scheme or, in the alternative, should fulfil all conditions as mentioned in the first vertical except condition (g) and shall also have other valid permissions as may be required in law.
Concerned authorities, whether the Planning and Development Authority or Municipalities, entrusted with the responsibility of giving construction permission or an occupancy certificate, shall provide the following benefits/relaxation to the construction permission.
- Each such housing complex under the SPARSH 2.0 scheme shall be entitled to an additional 50% of the applicable FSI.
- Each such housing complex under the SPARSH 2.0 scheme shall be entitled to an additional 20% of the ground coverage.
- Each such housing complex under the SPARSH 2.0 scheme shall be entitled to such relaxations in setbacks or abutting road size as the concerned Authority may determine by rules/bye-laws made in this behalf.
- With the exception of Green Zone and notwithstanding any other zone, road-width, or area, 20% of the permissible ground coverage shall be allowed to be used for commercial/business purposes.
- The concerned Authority shall regularise the existing housing complexes if they fall within the relaxed guidelines as prescribed under this Scheme.
Concerned Revenue Departments shall prioritise any application for NA for the construction of such housing complexes.
Eligibility
Note: You may be eligible based on the information shown. Please verify the official eligibility requirements before applying.
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The applicant should belong to Dadra And Nagar Haveli and Daman & Diu.
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The applicant should be the owner or authorised representative of the housing complex.
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The housing complex should fulfil SPARSH 2.0 infrastructure norms.
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The housing complex should possess a valid construction permission and/or occupancy certificate.
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The applicant should agree to reserve at least 66% dwelling units for Economically Weaker Section beneficiaries.
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The applicant should agree to maintain the housing complex and waste management systems.
Required Documents
- ✦Construction Plan
- ✦Approved Layout Plan
- ✦Construction Permission Documents
- ✦Occupancy Certificate
- ✦Non-Agricultural Permission Documents
- ✦SPARSH 2.0 Registration Documents
✦ Required ◦ Optional
How to Apply
IIn-person
Step 1: The owner or authorised representative of the housing complex should obtain Form A prescribed under the scheme.
Step 2: The applicant should fill out Form A and attach all required supporting documents.
Step 3: The completed application should be submitted to the concerned officer designated by the Secretary, Labour, for the respective district.
Step 4: The nodal officer shall verify the application within 30 days. Technical verification may also be conducted through the Associate Town Planner or other competent authority.
Step 5: After successful verification, the nodal officer shall issue the Registration Certificate in Form B.
Step 6: The nodal officer shall execute an agreement with the owner as prescribed under the scheme.
Step 7: The registration shall be verified annually. Registration may be cancelled if the scheme conditions are violated.
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