Rajiv Awas

Yojana
BY RITIKA KHEROTIA

BP/782/2018
Introduction
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.

It encourage States/Union Territories (UTs) to tackle slums in a definitive manner, by focusing on:
◦ Bringing all existing slums, notified or non-notified (including recognised and identified) within the formal system and
enabling them to avail the basic amenities that is available for the rest of the city/UA;
◦ Redressing the failures of the formal system that lie behind the creation of slums by planning for affordable housing
stock for the urban poor and initiating crucial policy changes required for facilitating the same.

The implementation phase of the scheme is for the period 2013-2022.

 Coverage
The scheme is applicable to all cities/UAs of the country. The selection for seeking assistance under the scheme will be made by the
States in consultation with the Centre. The cities/UAs covered under preparatory phase of RAY are automatically included under
implementation phase of RAY. The following criteria may further be followed for selection of cities and UAs:

 Cities/UAs with large proportion of slum dwellers should be given priority.

 District headquarters, cities of religious, historic, cultural, heritage and tourist importance may be given preference.

 Cities/UAs with predominance of SC/ST/minority population/other vulnerable section of the society may be accorded priority.

 States/UTs will require to assess their own resource mobilisation capacity and availability of allocated funds under the scheme while
selecting cities.

 The scheme is applicable to all slums within a city, whether notified or non-notified (including identified and recognised), whether on
lands belonging to Central Government or its Undertakings, Autonomous bodies created under the Act of Parliament, State
Government or its Undertakings, Urban Local Bodies or any other public agency and private sector. It is also applicable to “urbanized
villages” inside the planning area of the city, urban homeless and pavement dwellers.
Framework for Implementation
Framework for Implementation
 Implementation Strategy
Two-step implementation strategy is adopted in the scheme.

1. Preparation of Slum free city plans of action (SFCPoA) will be the overall action plan of the urban local body that
will include investment requirements for improving and developing slums and the civic infrastructure and housing
plans that will be provided to the urban poor for the next 10-15 years.

2. Preparation of Detailed project reports (DPRs) for specific slums- as preparation of slum free city plans of action
may take time States/UTs may prepare DPRs for specific prioritized slums. The detailed project reports will concern
one slum at a time, while slum free city plans of action will cover the entire city.
Implementation Strategy
(1) State/UT will submit proposals (SFCPoA or the slum level DPR) to the central government with
the approval of the state level sanctioning and monitoring committee.

(2) These would be appraised by the agencies appointed by the ministry such as building material and
technology promotion councils (BMTPC).

(3) They will report their recommendations to the RAY mission directorate.

(4) The mission directorate will appraise the proposals before submitting them to the central
sanctioning and monitoring committee(CSMC).

(5) The final sanctioning authority will vary with project cost.
Implementation Strategy
Project costing up to Rs 100 crore- Central sanctioning and monitoring committee (CSMC) will be
the sanctioning authority.

Project costing Rs 100- 300 crore-Minister of urban housing and poverty alleviation will be
sanctioning on recommendation of CSMC.

Project costing Rs 300- 500 crore- Minister of urban housing and poverty alleviation and Minister of
finance will be sanctioning on recommendation of CSMC.

Project costing above Rs 500 crore- Competent authorities as determined by Ministry of finance will
be sanctioning.
 Funding Pattern
RAY provides flexibility in the manner of construction and arrangement of funds. There are two models:

• Beneficiary led execution where the beneficiaries are involved in the construction of housing. This results in better
monitoring and also gives a sense of ownership to the beneficiaries. Funds to the beneficiary are released in not more than
4 installments- 10% on commencement on construction, 30% once construction is up to plinth level, 40% once
construction is up to roof level and final 20% after completion.

• Executing agencies- execution of housing projects may be taken up by ULBs (urban local bodies), or agencies like the
housing boards, development authorities, etc. .
Funding Pattern
Funding pattern would vary with population of a city as per 2011 census.
 Funding Pattern
The ULB share can also be borne by the State/UT. MPLAD/MLALAD funds may also be used as a substitute for ULB
share. There are provisions for institutional credit to beneficiaries –

Rajiv Rinn Yojana will provide interest subsidy of 5% on long tenure loans of 15-20 years, with an upper limit of Rs 5
lakh for economically weaker sections(EWS- with annual income uptoRs 1 lakh) and upper limit of Rs 8 lakh for lower
income groups(LIG- with annual income between Rs 1-2 lakh).

Credit Risk Guarantee Fund- This fund, operated by the National housing bank, guarantees lending institutions a
coverage of 85% for loans from Rs 2- 5 lakh and 90% in case of loans up to Rs 2 lakh.
Case Study: Kota
Project Need

 Increasing migrant population creates new slum problem in Kota City from nearby rural areas because of
employment opportunities.

 About 19.40% of total Slum Households reside in Rental Housing.

 Immediate need to take preventive or pre-emptive action to create Rental housing and urban services in
Kota city for prevention of new slums.

 Tackling the shortages of urban land and housing .

Case Study: Kota
Case Study: Kota

Site location
on master
plan 2023,
Kota
Case Study: Kota
Steps for constuction of houses under RAY

More than 10,000 houses has been constructed for EWS/LIG in Kota City Under various housing
Schemes of State Govt.

More than 1480 houses has been taken-up within this financial year.

Provides 25% Plots to EWS/LIG under various residential schemes as per State Government township
policy.
Case Study: Kota
Project Sanction cost and expenditure incurred and Central Assistance Received
Case Study: Kota
Details Project Cost…
Case Study: Kota
Eligibility Criteria

Applications for allotment of house in rental to ownership housing scheme were invited from persons satisfying below
mentioned eligibility Criteria:

1. Persons residing in slums of Kota city on Rental/Tenant Basis:

Socio-economic survey under RAY was conducted in slums of Kota city in year 2011- 12. More than 15000 families had been
residing on rental basis in the slums of Kota city as per survey. In order to address Housing problem of this group the scheme had
been launched. Therefore, 70% of the total houses were reserved for this group. Person residing in the slum of Kota city who’s
income was less than 2 Lac p.a. and also surveyed as rental slum dweller in RAY survey was considered eligible in this scheme.

2. Persons of BPL Category of Kota city:

30% of the total houses were reserved for this group person who is in BPL category as per the list BPL census 2003 Rajasthan.
Homeless Person of BPL category residing in rental houses were considered eligible in this category.
 Case Study: Kota
Rental to Ownership Procedure…

Initially beneficiaries have been allotted the house on Monthly rent of Rs. 525.00 for the period of 5 years.

 Monthly rent can be increased @5% per annum.

 Besides payment of monthly rent the allottee is also required to pay Rs. 100 per month as maintenance charges of the scheme.

 After successful completion of 5 year rental period ownership of house shall be offered to the allottee on the payment of Rs. 35,000 i.e.
10% of actual cost of construction of the house.

 Allotment of the house may be cancelled, if allottee breaches allotment conditions:

i) Alteration or additional construction in the house.
ii) Selling of the House.
iii) Renting of the house.
iv) Commercial use of the house.
v) Involvement in illegal/criminal activities.
 Case Study: Kota
Rental to Ownership Procedure…

Initially beneficiaries have been allotted the house on Monthly rent of Rs. 525.00 for the period of 5 years.

 Monthly rent can be increased @5% per annum.

 Besides payment of monthly rent the allottee is also required to pay Rs. 100 per month as maintenance charges of the scheme.

 After successful completion of 5 year rental period ownership of house shall be offered to the allottee on the payment of Rs. 35,000 i.e.
10% of actual cost of construction of the house.

 Allotment of the house may be cancelled, if allottee breaches allotment conditions:

i) Alteration or additional construction in the house.
ii) Selling of the House.
iii) Renting of the house.
iv) Commercial use of the house.
v) Involvement in illegal/criminal activities.
Case Study: Kota
Funding Pattern…
Case Study: Kota
After scheme implementation
 Funding Pattern
The ULB share can also be borne by the State/UT. MPLAD/MLALAD funds may also be used as a substitute for ULB
share. There are provisions for institutional credit to beneficiaries –

Rajiv Rinn Yojana will provide interest subsidy of 5% on long tenure loans of 15-20 years, with an upper limit of Rs 5
lakh for economically weaker sections(EWS- with annual income uptoRs 1 lakh) and upper limit of Rs 8 lakh for lower
income groups(LIG- with annual income between Rs 1-2 lakh).

Credit Risk Guarantee Fund- This fund, operated by the National housing bank, guarantees lending institutions a
coverage of 85% for loans from Rs 2- 5 lakh and 90% in case of loans up to Rs 2 lakh.