As land availability and paucity of funds in local bodies are the prime constraints, state authorities are groping in dark to implement the Rajiv Awas Yojana launched to facilitate affordable housing for slum dwellers.
Though the central government would extend financial assistance to state willing to assign property rights to slum-dwellers for shelter and basic civic and social services and for creation of affordable housing stock, authorities do not have wider options. Besides central and state government’s contribution, the slum dwellers will also have to chip in at least 20 per cent as their share. "Besides, land, arrangement of funds for slum-dwellers are the biggest issues in implementing the scheme. The bankers are not ready to fund less than 13 per cent," says Ravindra Pastore, commissioner Jabalpur division.
Authorities say dwellers will only be funded by banks if they have the title deed of the house. However, the scheme does not permit the authorities to allot the houses or the title deed before entire residential complex is completed.
"How can banks fund a slum-dweller before title deed or the house allotted?," asks S K Vaid, commissioner Rewa division. "Moreover they do not have regular income to repay loans," he added.
State minister for urban development, Babulal Gaur, admits that arrangement of land and fund pose tough challenge.
Pastore advises that a community user group of dwellers should be created so that slum-dwellers can be allotted houses before they are constructed and strict monitoring can be maintained. But the local bodies have no funds to contribute to the scheme. "We hardly manage to pay our electricity dues, how the central government wants us to contribute 30 per cent to the Rajiv Awas Yojna?"
A whopping sum of Rs 10,000 crore has already been sanctioned for five cities — Bhopal, Indore, Jabalpur, Gwalior and Sagar. Ujjain city is under survey and nearly 15,000 slum areas are to be covered under the scheme.
The scheme is expected to cover about 250 cities, mostly with population of more than 100,000 across the country by the end of 12th Plan (2017).
"To encourage private sector participation in slum re-development, central assistance can also be used by the states and cities towards viability gap funding but it also poses many questions and not an easier option," says another official who does not wish to be named and advises, "State government should agree to establish a mortgage risk guarantee fund to facilitate lending for urban poor for housing purpose."
Cities like Bhopal have some typical issues; a slum area falls under BHEL industrial township which is developed on state land. The Centre has refused to give the land back to the state. "How can they surrender us the land we do not know," says another official in the state urban development department. "Further, house construction is now very costly, the Centre will have to raise funds," he suggested.
The scheme is expected to begin in 250 cities which have an estimated 32.10 million people living in slums. They will benefit by way of property rights and access to decent shelter, basic amenities and a dignified life, it is yet to come out of drawing board.
