Rajiv Awas

Yojana
INTRODUCTION

In pursuance of this vision of “Slum free India”, Rajiv Awas Yojana (RAY) was launched in
June 2011 in two phases; the preparatory phase for a period of two years which ended in June 2013.
Central Government has approved the implementation phase for the period of 2013-2022.
Continuation of Affordable Housing in Partnership Scheme also approved as part of RAY with suitable
amendments.

Vision

Rajiv Awas Yojana (RAY) envisages a “Slum Free India” with inclusive and equitable cities in which every
citizen has access to basic civic infrastructure, social amenities and decent shelter.
 Improving and provisioning of housing, basic civic infrastructure and
social amenities in intervened slums.

Enabling reforms to address some of the causes leading to creation of

slums.

Facilitating a supportive environment for expanding institutional credit

linkages for the urban poor.

Objectives
Institutionalizing mechanisms for prevention of slums including creation
of affordable housing stock.

Strengthening institutional and human resource capacities at the Municipal,

City and State levels through comprehensive capacity building and
strengthening of resource networks.

Empowering community by ensuring their participation at every stage of

decision making through strengthening and nurturing Slum Dwellers’
Association/Federations.
 Applicable to all cities/UAs of the country.

Selection to be made by States/UTs in consultation with the Centre.

Duration
and Cities/UAs covered under preparatory phase of RAY automatically

Coverage
included under implementation phase of RAY.

The following criteria may further be followed for selection of cities and
UAs:
• Priority to Cities/UAs with large proportion of slum dwellers.
• District headquarters, cities of religious, historic, cultural, heritage
and tourist importance preferred.
• Predominance of SC/ST/minority population/other vulnerable section
of the society.
 Selection of Cities
States/UTs to select Cities/Towns in consultation with Centre:
• Applicable to all cities and towns
• Cities selected in Preparatory Phase automatically included.
• Priority to Cities/UAs with large proportion of slum dwellers.
• District headquarters, cities of religious, historic, 9 District
headquarters, cities of religious, historic, cultural, heritage and tourist
importance preferred.

Selection of
• Predominance of SC/ST/minority population/other vulnerable section
of the society. ? Applicable to Urbanised villages within planning
area

Cities

• States/UTs to assess their own resource mobilisation capacity and

availability of allocated funds while selecting cities.
 Activities for preparation of SFCPoAs include:
• Slum Survey
• Data Entry into MIS
• GIS Mapping of Slums
• GIS-MIS integration

Preparation of
SFCPoA

SFCPoAs in two parts :

• Curative Strategy for Slum Redevelopment of all existing slums,
notified, recognized or non-notified, on lands belonging to
State/Central Government, Urban Local Bodies, Public Undertakings
of State/Central Government, any other public agency and private
land; and
• Preventive Strategy for Containment of growth of future Slums.
FUNDING
PATTERN

• There will be an upper ceiling of ` 5 lakh per DU for

cities with population more than 5 lakhs. This ceiling
would be at ` 4 lakhs per DU for smaller cities with
population less than 5 lakhs. In North East (NE) and
special category States, upper ceiling would be at ` 5
lakh per DU irrespective of population of the city.
Upper ceilings, as above, would also include cost of
civic infrastructure and social amenities.
• Cost of civic infrastructure and social amenities per
DU should not exceed 25% of the cost.
• Land cost will not be admissible for Central
Government funding under the scheme.
REFORMS
MANDATORY REFORMS

• Lease for long term ( 5 Yrs - 15 Yrs ) for slum dwellers for commitments and willingness.
• 15% of residential or 35% of dwelling units , which is higher .
• A non-lapsable earmarking of 25% of the budget of the municipality to provide basic services to the
urban poor

OPTIONAL REFORMS

• Formulation of State Policy for Affordable Housing

• Amendments of Master Plans to provide for inclusive growth through
inclusionary zoning and other measures for inclusive development.
• Simplification of the processes and procedures of sanctioning buildings and building lbyeleaws.
ACCESS TO CREDITS
It is widely recognised that significant credit is not flowing from banks and financial institutions to the
urban poor for housing. Following measures are undertaken to improve access to credit for EWS/LIG
housing:

Rajiv Rinn Yojana (RRY)

The Interest Subsidy Scheme for Housing the Urban Poor (ISHUP) is proposed to be continued as a
Central Sector Scheme and be called Rajiv Rinn Yojana (RRY) in the 12th Plan period. It will provide
interest subsidy of 5% on long tenure loans of 15-20 years limited to ` 5 lakh borrowed by the EWS/LIG;
with ceiling of ` 8 lakh loan for LIG making housing loan cheaper for this segment

Credit Risk Guarantee Fund (CRGF)

The CRGF would enable the lending institutions to avail coverage upto 85% for loans from ` 2 lakhs to `
5 lakhs and 90% in case of loans upto ` 2 lakhs.
Project Sanction &
Approval
• Each DPR would be submitted through the State Nodal Agency (SLNA) with approval of the
SLSMC.
• Duly submitted DPRs to be appraised by Appraisal Agencies e.g. HUDCO & BMTPC.
• DPRs alongwith appraisal reports to be placed in the Central Sanctioning & Monitoring
Committee (CSMC) for consideration and approval.
• CSMC to also approve financial norms for various activities to be undertaken under RAY.
PILOT PROJECTS UNDER RAY
PILOT PROJECTS UNDER RAY