Last year, the government had announced the launch of Rajiv Awas Yojana (RAY) aimed at making cities slum-free, addressing the problems of slum-dwellers and urban poor in a definitive and holistic manner. With the sanctioned budget of Rs 1,270 crore for the current fiscal, the ministry has given final shape to other crucial aspects like financing pattern, contribution of the Centre, states and the model for PPP.
Prior to unveiling the scheme, the ministry had asked the state government to chalk out an action plan for slum-free cities, and sanctioned Rs 120 crore for it.
Besides, slum-free city planning, the states were asked to frame legislation to accord property rights to slum-dwellers, and also formulate detailed project reports for the release of funds.
The ministry has re-drafted the RAY scheme to focus on upgrading slums, redevelopment, rehabilitation and constructing new houses after factoring in the views of concerned stakeholders, states and the expert committee, which is headed by Deepak Parekh.
The ministry constituted the expert panel to estimate "reliable" urban slumpopulation. As per the committee’s findings, around 93.06 million people will live in slums in cities by next year. Faced with funds crunch, the ministry has sought supports of banks, other financial institutions and the real estate sector to use its interest subsidy scheme for construction of houses for urban poor.
"There is a need for credit enhancement through appropriate fiscal, legal and institutional mechanism to ensure the flow of capital to realize the vision of slum free India," housing and urban poverty alleviation minister Kumari Selja said.