Rajiv Awas Yojana 1 Mission Directorate, Ministry of Housing & Urban Poverty Alleviation Government of India Ministry of Housing & Urban Poverty Alleviation Government of India, New Delhi Slum-free India Mission

Rajiv Awas Yojana 2 “My Government proposes to introduce a Rajiv Awas Yojana for the slum dwellers and the urban poor on the lines of the Indira Awas Yojana for the rural poor. The schemes for affordable housing through partnership and the scheme for interest subsidy for urban housing would be dovetailed into the Rajiv Awas Yojana which would extend support under JNNURM to States that are willing to assign property rights to people living in slum areas. My Government's effort would be to create a slum free India in five years through the Rajiv Awas Yojana. “ “My Government proposes to introduce a Rajiv Awas Yojana for the slum dwellers and the urban poor on the lines of the Indira Awas Yojana for the rural poor. The schemes for affordable housing through partnership and the scheme for interest subsidy for urban housing would be dovetailed into the Rajiv Awas Yojana which would extend support under JNNURM to States that are willing to assign property rights to people living in slum areas. My Government's effort would be to create a slum free India in five years through the Rajiv Awas Yojana. “ Address by President of India to Joint Session of Parliament, 04 June, 20 09

Rajiv Awas Yojana 3 “We had started the Jawaharlal Nehru National Urban Renewal Mission for the urban areas. We will accelerate this programme also. Today, lakhs of our citizen live in slums which lack basic amenities. We wish to make our country slum free as early as possible. In the next five years, we will provide better housing facilities to slum dwellers through a new scheme, Rajiv Awas Yojana”. “We had started the Jawaharlal Nehru National Urban Renewal Mission for the urban areas. We will accelerate this programme also. Today, lakhs of our citizen live in slums which lack basic amenities. We wish to make our country slum free as early as possible. In the next five years, we will provide better housing facilities to slum dwellers through a new scheme, Rajiv Awas Yojana”. Prime Minister’s Address to the Nation on 15 th August 2009

Rajiv Awas Yojana 4 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

5 The Approach For a Slum-free India, it is not sufficient to address existing slums For a Slum-free India, it is not sufficient to address existing slums It is as important to tackle the basic reasons behind the creation of slums:It is as important to tackle the basic reasons 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 quarter of urban population into extra-legal vulnerability Slum-free India Mission

Rajiv Awas Yojana 6 For a Slum-free India, RAY has to gather: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 Government Support and, offer enabling Central Government Support The Approach

Rajiv Awas Yojana 7 Size of the Problem Size of the Problem Scarcity of Land at Affordable Prices Scarcity of Land at Affordable Prices Scarcity of Credit to the Poor in the Informal Sector Scarcity of Credit to the Poor in the Informal Sector Lack of Private Sector Participation so far Lack of Private Sector Participation so far Technology for Mass Housing Construction Technology for Mass Housing Construction Aspects Important to Strategy Design

Rajiv Awas Yojana 8 The Size of the Problem Slum Population Slum Population Estimated 62 million in 2001, not counting those in non- notified, non-recognised clusters with less than 60 household Urban Poor Population Urban Poor Population An estimated 81 million in – NSSO 61 st Round Housing Shortage Housing Shortage 24.7 Million in 2007, 99% of it estimated for the poor Aspects Important….Size

Rajiv Awas Yojana 9 Land Availability can be enhanced by In situ slum upgradation: PPP, Slum-dwellers Cooperative, Beneficiary-driven, Government-driven In situ slum upgradation: PPP, Slum-dwellers Cooperative, Beneficiary-driven, Government-driven Creation of virtual land – Use of FSI/TDR/Incentive zoning as resource Creation of virtual land – Use of FSI/TDR/Incentive zoning as resource Encouraging affordable housing by PPP on private holdings subject to incentives by Government Encouraging affordable housing by PPP on private holdings subject to incentives by Government Reservations of land/housing for EWS/LIG housing in all new developments Reservations of land/housing for EWS/LIG housing in all new developments Aspects Important….. Land

Rajiv Awas Yojana 10 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 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 There are no housing microfinance institutions The institutional framework for social housing has become dysfunctional The institutional framework for social housing has become dysfunctional Aspects Important….Credit

Rajiv Awas Yojana 11 State-led Action and State-led Pace State-led Action and State-led Pace States to Prepare their Plans of action for slum free status – Slum-free State Plan to be based on Slum-free City Plans States to Prepare their Plans of action for slum free status – Slum-free State Plan to be based on Slum-free City Plans Centre to appraise and clear Centre to appraise and clear Central releases to follow enactment of legislation assigning right to a dwelling space – to all slum dwellers Central releases to follow enactment of legislation assigning right to a dwelling space – to all slum dwellers Capacity building support by Centre. Capacity building support by Centre. Centre to create enabling environment and a menu of financial support for states to choose from. Centre to create enabling environment and a menu of financial support for states to choose from. The Proposed Strategy Design

Rajiv Awas Yojana 12 (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

Rajiv Awas Yojana 13 The State POA in two parts – The State POA in two parts – Part I Enacting Legislation for Property Rights and Plan for Upgrading all Existing Slums, notified or not, in a Whole City Approach Enacting Legislation for Property Rights and Plan for Upgrading all Existing Slums, notified or not, in a Whole City Approach Part II Creation of conditions to deter new slum formations by tackling: the Price–distorting land and housing shortages; the Exclusionary town planning norms; Planning for earmarking of space for slum dwellers/urban poor Creation of conditions to deter new slum formations by tackling: the Price–distorting land and housing shortages; the Exclusionary town planning norms; Planning for earmarking of space for slum dwellers/urban poor State Plans of Action for Slum-free Cities

Rajiv Awas Yojana 14 Slum Survey, Slum MIS, GIS Mapping, GIS-enabled Slum Information System – Support to StatesSlum Survey, Slum MIS, GIS Mapping, GIS-enabled Slum Information System – Support to States Slum-free City and Slum-free State Cells with ExpertsSlum-free City and Slum-free State Cells with Experts Model Legislation on Property Rights to Slum Dwellers and Legal Framework for Slum-free CitiesModel 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/CBOsChoice 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 PlansPreparation 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 LawsDeveloping 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.Easing Flow of Credit to the Urban Poor - Design of Housing Mortgage Guarantee Fund. Preparatory Tasks

Rajiv Awas Yojana 15 Credit may still not flow to the EWS- Banks are fearful of loan waivers, difficulties in foreclosing mortgages of the 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 slums Many slums are reservations, untenable locations, on private land and on central lands; many states have adopted auctioning of lands as a policy Lack of an institutional framework for social housing may delay execution State Housing Boards mostly dysfunctional Resistance from Slumlords/slum-dwellers There are huge vested interests in slums Addressing Risks

Rajiv Awas Yojana 16 Thank You