The proposal was given a go ahead at a meeting of Delhi Urban Shelter Improvement Board (DUSIB) chaired by Chief Minister Sheila Dikshit.
The flats will be constructed at Savda Ghevra and Bhalswa area of Jahangirpuri. A 100 acre plot is lying vacant at Savda Ghevra while the size of the land at Bhalswa is around 102 acre.
"Around 40,000 flats for urban poor would be developed at these two sites," said a senior DUSIB official. The DUSIB is the nodal agency for implementing the slum relocation policy.
It also decided to distribute 14,000 low-cost flats to slum dwellers by September as their constructions have already been completed.
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The flats were built by Delhi State Industrial Infrastructure Development Corporation (DSIIDC) in Bawana, Narela and Bhorgah area with financial assistance from the Union Urban Development Ministry under the JNNURM scheme.
The meeting also gave its nod for construction of a working women hostel at Jhilmil Colony in East Delhi at an estimated cost of Rs 3.74 crore.
In order to make the camps successful, the residents in selected clusters are being informed and educated well-in advance so that they can come prepared with necessary documents.
Officials said around 48,000 flats are under-construction at various sites.
A proposal to construct a commercial-cum-residential complex at Phool Mandi near Town Hall in Central Delhi was also discussed. The complex will come over a plot of around 3 acre which is under possession of the DUSIB.