Cities Alliance Project Output

Day 1 Session 1 'Rajiv Awas Yojana - Slum Free India Mission' by P.K.Mohanty

(Joint Secretary and Mission Director JNNURM, MoHUPA)

India International Workshop: Scaling up Upgrading and Affordable Housing: From National Policies, to State Programs,

and City-Wide Slum-Free Interventions

P120776

This project output was created with Cities Alliance grant funding.

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Rajiv Awas Yojana

Mission Directorate, Ministry of Housing & Urban Poverty Alleviation

Government of India

Ministry of Housing & Urban Poverty AlleviationGovernment of India, New Delhi

Slum-free India Mission

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“My Government proposes to introduce a RajivAwas Yojana for the slum dwellers and the urbanpoor on the lines of the Indira Awas Yojana forthe rural poor. The schemes for affordablehousing through partnership and the scheme forinterest subsidy for urban housing would bedovetailed into the Rajiv Awas Yojana whichwould extend support under JNNURM to Statesthat are willing to assign property rights topeople living in slum areas. My Government'seffort would be to create a slum free India in fiveyears through the Rajiv Awas Yojana. “

Address by President of India to Joint Session of Parliament, 04 June, 20 09

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“We had started the Jawaharlal Nehru NationalUrban Renewal Mission for the urban areas. Wewill accelerate this programme also. Today, lakhsof our citizen live in slums which lack basicamenities. We wish to make our country slumfree as early as possible. In the next five years,we will provide better housing facilities to slumdwellers through a new scheme, Rajiv AwasYojana”.

Prime Minister’s Address to the Nation on 15th August 2009

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President’s announcement gives us:

A Bold New Vision:“A Slum-free India in Five Years Time”

Clear Policy Direction for Inclusion:“Assign property rights to people living in

slum areas”

The Programme Outline“Rajiv Awas Yojana for slum dwellers

based on a whole city approach”

Rajiv Awas Yojana

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The Approach

• For a Slum-free India, it is not sufficient toaddress existing slums

• It is as important to tackle the basicreasons behind the creation of slums:– Urban land and housing scarcities that make the

market unaffordable, not only to the BPL– An unrealistic town planning model that does not

recognise poverty and forces more than a quarterof urban population into extra-legal vulnerability

Slum-free India Mission

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• For a Slum-free India, RAY has to gather:

– Multiple Partners– Institutional Funds– State Government Commitment– Close Involvement of Urban Local Body– Community Participation

and, offer enabling Central GovernmentSupport

The Approach

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• Size of the Problem

• Scarcity of Land at Affordable Prices

• Scarcity of Credit to the Poor in the InformalSector

• Lack of Private Sector Participation so far

• Technology for Mass Housing Construction

Aspects Important to Strategy Design

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The Size of the Problem• Slum Population

Estimated 62 million in 2001, not counting those in non-notified, non-recognised clusters with less than 60household

• Urban Poor PopulationAn estimated 81 million in 2004-05 – NSSO 61st Round

• Housing Shortage24.7 Million in 2007, 99% of it estimated for the poor

Aspects Important….Size

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Land Availability can be enhanced by

• In situ slum upgradation: PPP, Slum-dwellers Cooperative,Beneficiary-driven, Government-driven

• Creation of virtual land – Use of FSI/TDR/Incentive zoningas resource

• Encouraging affordable housing by PPP on privateholdings subject to incentives by Government

• Reservations of land/housing for EWS/LIG housing in allnew developments

Aspects Important….. Land

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Credit does not flow for housing the poor• Banks look for credit history and don’t give loans to

slum dwellers – even priority sector lending does not

reach them

• There are no housing microfinance institutions

• The institutional framework for social housing has

become dysfunctional

Aspects Important….Credit

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• State-led Action and State-led Pace

• States to Prepare their Plans of action for slumfree status – Slum-free State Plan to be basedon Slum-free City Plans

• Centre to appraise and clear• Central releases to follow enactment of

legislation assigning right to a dwelling space –to all slum dwellers

• Capacity building support by Centre.

• Centre to create enabling environment and a menuof financial support for states to choose from.

The Proposed Strategy Design

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(i). Upgradation of Slums as well as Measures to prevent New Slums – ‘Whole City’ Approach

(ii) Legislative Framework for Property Rights to Slum-Dwellers

(iii) Easing Credit Availability for the Urban Poor for Housing, including Interest/Capital Subsidy - Enable Demand-driven Housing

(iv) Public-Private Partnerships for Affordable Housing

(v) New Paradigm of Inclusive Planning - Reservation of Land for Housing the Poor in City Master Plans and Security of Land Tenure to Slum-Dwellers.

Rajiv Awas Yojana… Directions

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• The State POA in two parts –Part I• Enacting Legislation for Property Rights and Plan for

Upgrading all Existing Slums, notified or not, in aWhole City Approach

Part II• Creation of conditions to deter new slum formations

by tackling: the Price–distorting land and housingshortages; the Exclusionary town planning norms;Planning for earmarking of space for slumdwellers/urban poor

State Plans of Action for Slum-free Cities

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• Slum Survey, Slum MIS, GIS Mapping, GIS-enabledSlum Information System – Support to States

• Slum-free City and Slum-free State Cells with Experts• Model Legislation on Property Rights to Slum Dwellers

and Legal Framework for Slum-free Cities • Choice of Slum Redevelopment/Rehabilitation Model –

Focus on PPP where feasible; Involve NGOs/CBOs• Preparation of Slum-free City Plan based on Slum

Redevelopment / Rehabilitation & Prevention Plans• Developing an Inclusive Urban Planning Paradigm -

Amending Town Planning, Urban Development, Muniicpla, Revenue & Other Laws

• Easing Flow of Credit to the Urban Poor - Design of Housing Mortgage Guarantee Fund.

Preparatory Tasks

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Credit may still not flow to the EWS-Banks are fearful of loan waivers, difficulties in foreclosing mortgages ofthe poor, high costs of collection

Private sector participation may not materialise-Developers will return to HIG as soon as the market upswing starts

States may have difficulty assigning land for slumsMany slums are reservations, untenable locations, on private land andon central lands; many states have adopted auctioning of lands as apolicy

Lack of an institutional framework for social housing maydelay executionState Housing Boards mostly dysfunctional

Resistance from Slumlords/slum-dwellersThere are huge vested interests in slums

Addressing Risks

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Thank You