Rajiv Awas Yojana (RAY)

Rajiv Awas Yojana announced by the President in June 2009

Over a year long process of consultation with all stakeholders

Objective to create a Slum-Free India through assignment of

property rights and housing for the poor

Scheme approved by the Cabinet on June 2nd 2011

RAY in two phases:

Phase I (2011-2013) covering innovative and pilot

projects and initial set of cities ready with City wide plans
; Outlay Rs 5000 Cr

Phase II (2013-2017) for the remaining period of the

Twelfth Five Year Plan

Selection of cities in consultation with the Centre

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Features of the Scheme

o

Large scale financial support from the Centre to States

planning, upgrading and redeveloping existing slums in cities

Support to cover whole city requirement to ensure that no slum/

no-slum dweller is left out

States expected to assign property rights for slum dwellers

State funding to be used to massively upgrade infrastructure and

services in slums to same level as the rest of the city

Concurrently, Central Government working with banks to enable

large scale credit for EWS/ LIG housing, both in-situ and fresh
stock

Credit Guarantee Fund

Mandatory earmarking of land for the poor as part of preventive

strategy
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for

Slum Free India

Every citizen has right to civic services,
social services and shelter
Shift from
project approach
to
Whole city, All slum approach

Community Participation

Support for investments

Policies for scale and sustainability

Curative Strategy

Preventive Strategy

Reform Pillar 1

Reform Pillar 2

Reform Pillar 3

Improvement
of existing
slums

Providing shelter
and services for
growth

Property Rights
to all

Reservation of
land

Earmarking of
funds

Decentralised
Shelter for
homeless

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Flexible

Transit
housing

Basic
services

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Incentive led
Revelopment

Relocation

Involve markets
Rental
Housing

Affordable
Housing

RAY: Pattern of Central Support

o 50% of

slum redevelopment costs, including

provision of basic civic/ social infrastructure and
housing including ownership, rental and transit

o Centre + State + ULB to bear the cost of infrastructure

o State share for infrastructure to be minimum 20%

o Affordable Housing in Partnership Scheme and

Interest Subsidy Scheme for Housing the Urban Poor

(ISHUP) to be dovetailed with RAY
o 10 % for Capacity Building, Preparatory Activities, IEC

& Community Mobilization

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Approvals & Release of Funds

o

Releases and approvals to be on the basis of DPRs which need to

be submitted with approval of State Level Sanctioning and
Monitoring Committee

Innovative and pilot projects to be considered for sanction even

in the preparatory stage

Central Funds to be released in 3 installments to the State

Governments/SLNA
First Installment after sanction of DPR and on submission of

financing plan for State/ULB share for the project

The subsequent installments on receipt of Utilization

Certificate for 70% of the earlier release

o

3 Mandatory reforms within 1 year of DPR sanctions

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Steps in RAY preparation - approval

Slum database

Plan of Action

Community mobilisation
Slum Free City Plan
Part I Redevelopment

Slum Free City

Plan

Part II - Containment.

City Preparation

Act for property

rights

State Policy

State approval

DPR stage
States initiate
implementation

Central approval

Implementation

Slum Free City Plan

Property rights
legislation
State Plan of Action

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Quantum of central support

City specific reforms and targets
are finalised at this stage based
on State Plan of Action

RAY SUMMARY
Three-tiered approach
Improving existing slums
Relocation/upgrading/redevelopment

Preventing future slum formation

Lifting regulatory barriers
Subsidizing mortgage for the poor

Improving governance
Decentralization
Information base (e.g. Slum GIS)

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