RAY funding pattern to be tweaked; states to be consulted



The Rajiv Awas Yojana (RAY) is to be tweaked by changing the norms relating to its funding pattern and granting property rights to make it more effective.A?Officials of the Ministry of Housing and Poverty Alleviation (MoHUPA) said they have decided to improve the scheme by incorporating suggestions from states.A?The government had launched RAY in June 2011 to bring about a slum-free India by tackling inequalities in urban planning and land management practices.

An official in the ministry said the ministry was also proposing a flexible criteria that stipulates that financial support for housing should be 60% for big cities, 80% for small cities and 90% for the northeastern states.
We also intend to link the unit cost to scheduled rates of construction in the states, the official added.A?He said there had been reluctance from some states on the key reform of assigning property rights to slum dwellers as land is a state subject.A?We are suggesting some other mechanism like long-term lease, the official said.
He said that new guidelines will lay more thrust for creation of physical infrastructure in slums apart from shelters.

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