Speaking at a function organised by industry chamber Assocham, Dikshit touched upon a range of major issues and identified scarcity of housing due to increasing population as key challenge facing the city.
In that context, she said her government had set a goal of riding the city of slums and but it could not be achieved due to lack of political will.
Referring to a observation made at the function by former Lt Governor of Delhi Ramesh Kumar that shanties came first in the city during Asian Games in 1982, Dikshit said politicians' "greed" for votes often force the authorities not to remove them.
"But I think we reached a point now that we must put all our efforts to make Delhi a better city and for that to happen we all will have to contribute," she said.
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As per official figures, there are 685 slum clusters in the city out of which 352 have come up on land owned by DDA while 333 slums have come up on land owned by Delhi government, Railways, CPWD, NDMC, MCD, Cantonment Board and CPWD.
"I agree with you that eventually perhaps Delhi will need high-rise buildings. But it will not be allowed as long as I am alive," she said.