Introduction

India’s 10th Five Year Plan noted that the urban slum population is growing despite sharp reductions in
poverty and rising incomes. The central and several state governments recognized the need for
intervention by initiating, or enlarging existing urban housing and other slum subsidy programs. With this
in mind, the Government of India (GOI) has requested a loan from the World Bank to implement a more
effective strategy and delivery mechanism for the financing of urban slum improvement and sanitation
provision in underserved areas.

In order to support the GOI to achieve the goals delineated in 10th Five-year Development Plan
concerning slum improvement and poverty alleviation in urban areas, the Bank has agreed to consider a
program that will focus on (a) refining the national policy framework for the upgrading of urban slums and
sanitation in underserved areas in India; (b) working with the states and various beneficiaries to establish
a methodology which measures program performance of both the GOI and the states, and identifies
concrete monitorable steps that can be taken to improve this performance; (c) developing appropriate
monitoring mechanisms to enable the evaluation and modification or redesign of the programs which
would improve the transparency, efficiency, administrative simplicity, and targeting of the assistance; and
(d) developing funding schemes for slum improvement and sanitation that could provide incentives so that
resources are used more effectively and the program reach expanded. In doing so, the program will

: (i) contribute to poverty alleviation in the poorest urban areas in India;

(ii) strengthen human capital in poor neighborhoods by increasing community participation in planning,
delivery and maintenance of public works and services;

(iii) improve the efficacy of the use of more than $400 million of annual government expenditures on these
programs.

SLUM IMPROVEMENT SCHEMES

Under this scheme, providing the basic amenities like Drinking water, Streetlight, community Toilet,
Community Bathroom, U.G.D. Storm water Drain. As per Govt. of India guidelines the per capita
expenditure of Rs. 800.00 is incured for development works in selected slums. The released amount of
Rs. 80.00 lakhs has been spent for these works.

HUDCO ASSISTED HOUSING SCHEME

During 2003-04, Valmiki Ambedkar Awas Yojana housing scheme was sanctioned by Central Govt. to the
slum dwellers. HUDCO assisted housing scheme was temporarily discontinued.

SITE AND SERVICES

A sum of Rs. 20.00 Lakhs was allocated in the budget. Under this scheme Rs. 18.00 lakhs is spent for
providing basic amenities in the Housing colonies and land compensation to provide slum land owners.

HUDCO LOAN REPAYMENT

The Government has earmarked Rs. 2500.00 lakhs for repayment of HUDCO loan along with interest. Up
to end of March 2004. Rs. 2500.00 lakhs has been paid to HUDCO towards this purpose.

ADMINISTRATION AND ESTABLISHMENT

Under the plan scheme of Rs.100.00 Lakhs and under non-plan scheme Rs.141.00 lakhs has been
earmarked in the budget. Up to end of March 2004 the Board has spent an amount of Rs. 457.24 lakhs
towards salary and administrative charges. The subject committee has recommended for payment of
salary to the KSCB in full instead of the present allocation of Rs 241.32 lakhs there is a deficit of Rs.
215.92 lakhs, but so far the funds were not released by the Finance Department.

OTHER SCHEMES IMPLEMENTED BY THE BOARD

NATIONAL SLUM DEVELOPMENT PROGRAMME (NSDP)

Central Government is allotting the funds to States for welfare of the slum dwellers. During the year 2003-
2004 an amount of Rs. 20.61 Crores was released under NSDP to the State Government. Out of this
30% as grant and remaining 70% as loan. The NSDP funds are not released directly to the Board, but the
State Government in its annual budget 2003-04 allocated an amount of Rs.29.20 Crores to KSCB. Out of
this Rs. 27.58 crores has been released of which Rs. 25.00 crores is towards repayment of HUDCO loan.
Nirmala Jyothi Rs 1.60 crores, slum Improvements Rs. 0.80 crores and Site and Service Rs. 0.18 crores.
This amount has been spent by the Board to the said purposes.

The National Slum Development Program (NSDP) was launched in 1996. Annually, the program
provides about Rs. 400 crores (Rs $ 4 billion) in assistance. The objective of the program is slum
upgrading through the provision of physical amenities, community infrastructure, health care and social
amenities. Up to 10% of the funds can be used for housing construction/upgradation. The Planning
Commission allocates funds annually, in proportion to the share of the national slum population in each
State or Union Territories (UT). Then the Ministry of Finance releases the funds to the States or the
UT. MOUD&PA is the Nodal Ministry responsible for monitoring and for the implementation
guidelines. Neighborhood Committees and Community Development Societies should implement the
NSDP at the local level.[8] Slum Development Committees, including elected representatives from ULBs,
NGOs and community-based organizations, should oversee them. The program has both loan and
subsidy components. For the larger States, loans constitute 70% and subsidies 30% of total allocated
funds. For the smaller States, the loan component is only 10% and the subsidy 90%. All construction is
undertaken by contractors.

ASIAN DEVELOPMENT BANK SCHEME :

During the year 2003-04 slum improvement works for an amount of Rs. 420.42 lakhs has been proposed
and approved by the KUIDFC Bangalore. In this programme an amount of Rs. 198.06 lakhs for Mysore II
stage works and Rs. 222.36 lakhs for Mandya and Maddur slum areas. An amount Rs. 466.56 lakhs has
been spent upto March 2004 and Works have been completed.

MEGACITY

Under the Megacity scheme, development of slums is taken up in Bangalore city. The total estimated cost
is Rs.4.30 crores, works are taken up in Bangalore city. The total estimated cost is Rs.4.30 crores, works
are taken up and completed by March 2004 in 10 declared slums. An amount of Rs.1.06 crores is spent
upto March 2004 under this scheme.

NEW SCHEMES IMPLEMENTATION

NIRMALA JYOTHI PROGRAMME

The Nirmala Jyothi programme was sanctioned in Govt. Order No. HD 13 KSCB 2000 Bangalore Dated
15-01-2001. The project cost is Rs.274.00 to develop 998 slums in 21 Class - I cities of the state. The
state Govt. grant is Rs. 54.00 crores and Rs. 220.00 crores is the Hudco loan. The programme was
launched during August 2002. In the first phase of the programme 260 slums have been taken up to
provide the basic amenities like drinking water, roads, drains, streetlights, toilets and UGD. The Works
have been completed in 4 cities and the remaining works in 17 cities is expected to complete by Nov.-
Dec. 2004.

In the 2nd Phase of the Nirmala Jyothi programme all preparatory works has been completed to call for
tenders to provide basic amenities in 265 slums of 18 Class I cities at an estimated cost of Rs.66.94
Crores. This is a massive slum improvement programme initiated by Govt. of Karnataka to provide basic
amenities to the Slum dwellers to keep the slums in hygienic and better living conditions.

VALMIKI AMBEDKAR AWAS YOJANA (VAMBAY) :

This is a centrally sponsored programme wherein housing for Urban poor (for slum families) has been
considered as priority sector. This programme was launched in April ' 2002 to provide housing facilities to
the slum dwellers. This is off budget borrowing programme and no subsidy / Govt. grants are requested in
the budget 2004-05. The central sanction committee of Govt. of India have agreed in principle to sanction
33282 houses to Karnataka of Which 9951 houses have been completed during 2003-04. Totally 17550
houses have been completed under this scheme.

NIRMAL BHARATH ABHIYAN YOJANA :

Under Valmiki Ambedkar Awas Yojana, central governement sanctioned Nirmal Bharath Abhiyan Yojana.
In this scheme, community toilets are being provided to the slum dwellers. Totally 279 community toilets
at an estimated cost of Rs. 11.16 crores was sanctioned by the Govt. of India. During 2003-04. 243
community toilets are completed.

PROVIDING SANITATION AND UGD FACILITY IN THE SLUM AREAS OF BANGALORE CITY :

Karnataka Slum Clearance Board has started an ambitious programme of constructing community toilets
in the slums of Bangalore City. A project report has been prepared for construction of these community
toilets at an estimated cost of Rs. 7.38 Crores. The toilets will be constructed and maintained by the
Social Organisation called Sulabha International. The works have commenced and 62 toilet complexes
have been completed and are put to use as on 31st March 2004. About 18 complexes are under
progress. An amount of Rs. 4.44 crores has been spent towards this purpose.

SCHEME WISE PLAN ALLOCATION AND EXPENDITURE, DURING 2003-2004

The NDA government’s proposed ‘Housing For All’ mission will pave way for private developers to leverage public
land in order to redevelop slums in-situ. The proposed policy of using land as a resource will signal a major shift
from the UPA government’s state-funded slum rehabilitation scheme Rajiv Awas Yojana.
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The mission, aimed at addressing housing shortfall in urban and rural India, is expected to be launched by PM
Narendra Modi in July. Sources in the Ministry of Housing and Urban Poverty Alleviation said the slum
redevelopment policy will be based on the Gujarat model. Launched in 2013 when Modi was CM, the Gujarat
policy is an improvement on a similar scheme in Mumbai, brought by Shiv Sena 17 years ago. Venkaiah Naidu,
Minister of Housing and Urban Poverty Alleviation, and Rural Development Minister Chaudhary Birender Singh
attended a meeting chaired by PM Modi Thursday to review preparations for the proposed mission. Naidu said,
“Shifting slum residents… is not easy as they are unwilling to leave. In Mumbai, private developers are able to
convince them. We need to adopt models that are in force in Mumbai and Gujarat in order to achieve the aim of
slum-free India by 2022