Rajiv Awas Yojana (RAY)

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The "Rajiv Awas Yojana" was launched by the Indian government and is being handled by the Ministry of Housing and Urban Poverty Alleviation (MHUPA). This Central Sector Scheme directs the states and union territories to grant property rights to slum dwellers and the urban poor with the goal of establishing a slum-free India. In this post, let's examine the Rajiv Awas Yojana in more detail.

The following are the goals of the Rajiv Awas Yojana (RAY):

• In order to stop slums from expanding, it is necessary to offer basic housing, municipal infrastructure, and social services to all slums—not just those that have been notified.
• to construct makeshift homes in slums and low-income areas with utilities like water supply, internal and approach roads, sewerage, drainage, street lighting, and social infrastructure amenities.
• To make reforms that address the factors that contribute to the development of slums possible.
• Establishing a favorable atmosphere to enable the urban poor's institutional credit connections to grow.
• To create an atmosphere that is conducive to improving institutional credit connections for urban poor people.
• To create an atmosphere that is conducive to improving institutional credit connections for urban poor people.
• Instituting measures to stop the development of slums, such as the supply of cheap housing.
• to strengthen resource networks and undertake comprehensive capacity building in order to increase institutional and human resource capacities at the municipal, city, and state levels.
• To strengthen and support slum dwellers' associations and federations in order to ensure community participation in decision-making at all levels.

The Scheme's Applicability

• All of the nation's cities and Urban Agglomerations (UAs) can use the plan. According to the plan, the states will choose which people to ask for help, after consulting with the center. The cities/UAs covered by the Rajiv Awas Yojana's preparatory phase are automatically included in the scheme's implementation phase.
• The cities and UAs may also be chosen based on the following criteria:

• The plan should give priority to the Cities/UAs with a high percentage of slum people.
• Priority should be given to the district headquarters and cities with significant religious, cultural, historic, and tourism value.
• The cities/UAs to be covered by the program include those where the majority population consists of Scheduled Castes (SCs) and Scheduled Tribes (STs), minorities, or other vulnerable groups.
• The States and UTs will have to evaluate their own abilities to mobilize resources and the availability of the monies allotted under this plan before choosing cities.
• The States and UTs will have to evaluate their own abilities to mobilize resources and the availability of the monies allotted under this plan before choosing cities.
• Whether on lands/property owned by the Central Government or its undertakings, autonomous bodies established under an Act of Parliament, State Government or its undertakings, Urban Local Bodies (UBLs), or any other public agency or private sector, the scheme is applicable to all slum areas within a city, whether notified or non-notified (including the identified and recognized). It also applies to urban homeless people and pavement dwellers, as well as the "urbanized villages" that are part of the city's planning area.

Quantity and Type of Financial Support

Cities with a population above 5 lakhs will have a maximum of 5 lakhs per Dwelling Unit (DU). This cap would be 4 lakhs per DU for smaller cities, meaning that fewer than 5 lakh people live there. The highest ceiling, regardless of the city's population, shall be set at 5 lakh per dwelling unit in North East Regions and Special Category States. The cost of necessary civic infrastructure and social facilities will also be included in the upper ceilings, as previously mentioned. Per DU, the cost of social amenities and municipal infrastructure cannot be more than 25% of the entire cost. Under this arrangement, the Central Government funds will not cover the cost of the land. 

The ULB share would be replaced with money available under the MPLAD/MLALAD. The State/UT may pay the ULB share or the other way around.

Beneficiary contributions are necessary to foster a sense of ownership among recipients. They must be made at least 10% in the case of SC, ST, OBC, single women, PH, and other weaker and vulnerable groups, and 12% in the case of the general category.

Initiatives Supported by the Plan

The Central Government would additionally support the following activities: 50% for cities with a population of more than 5 lakhs, 75% for cities with a population of less than 5 lakhs, and 80% for NER and special category states. The state of Tamil Nadu has been given Rs. 480.14 lakhs under this RAY initiative to carry out the slum eradication project's activities.

The CSMC shall decide on the unit cost or the financial standards for the activities mentioned below.

• The creation of the Slum Free City Plan of Action (SFCPoA) and other related preparation tasks, including data entry, slum mapping, GIS mapping, MIS, GIS-MIS integration, and consulting.
• Funding for state-level technical cells (SLTCs) would be distributed equally between the state and the center, with the exception of NER and special category states.
• With the exception of NE and special category states, where the share between the state and the Center for City level Technical Cells (CLTCs) will be in the ratio 80:20, the sharing would be 50:50 or 75:25, depending on the situation.
• With the exception of NER and special category states, the state and the center would split the funding equally for the city-level Technical Cells (CLTCs).
• creating detailed project reports (DPRs), whether they are done internally or externally.
• Project management fees and the Third Party Inspection and Monitoring Agency (TPIMA)
• For every activity outlined in the plan, the procurement procedures as mandated by the States and ULBs will be adhered to.
• The following provisions apply to the beneficiaries of the institutional credit:

• Rajiv Rinn Yojana: This program will offer a 5% interest subsidy for long-term loans lasting 15 to 20 years. The maximum amount that can be borrowed under this scheme is INR 5 lakh for Economically Weaker Sections (EWS) with annual incomes up to INR 1 lakh and an INR 8 lakh maximum for lower-income groups (LIG with annual incomes between INR 1 and 2 lakh).

Central Assistance Released

The estimated slum population, urban population, or any other appropriate criterion determined by the Ministry will be the basis for the indicative state-wise allocation. The remaining liabilities covered under the RAY plan and JNNURM will also be taken into consideration during the preparatory phase.

Two installments of funding will be released, one for each state and UT, to support the different initiatives leading up to the preparation of SFCPoAs. The first installment won't be issued until the States' approval of the proposal that the cities submit to CSMC for these activities has been received. After the cities, via the State governments, receive the utilization certificate for at least 70% of the previous central fund release, the second installment will be released. Prior to claiming the second installment, the cities must receive the state portion, if appropriate.

Execution of the Plan

The Ministry of Housing and Urban Poverty Alleviation implements the scheme in the States and UTs in accordance with the recommendations of the CSMC.

• Three installments in the ratio of 40:40:20 will be used to disburse the central funds needed to carry out the project in the designated slums.
• Following the CSMC's approval of the DPRs, the States and UTs would receive the first installment, which would total 40%.
• Only until funds from the prior central release have been used 70% of the time, plus the matching share from the state and ULB, will the subsequent installments be released.
• After the state, ULB, and beneficiary shares have been fully received and the agreed-upon reform agenda has been implemented in accordance with the MoA, the last 20% installment is issued.
• On the final installment, the O&M fund's major share will be made available.
• Note: The interest earned on the unused money available to States and Union Territories will be modified in accordance with directives issued by the Ministry of Finance's Expenditure Department, which are subject to periodic revision.

Evaluation and Approval of Projects

• With the permission of SLSMC, States/UTs would submit the plan to the central government for the chosen cities and slums.
• The DPRs that were submitted would be evaluated by the Ministry-appointed Appraisal Agencies (BMTPC, HUDCO). The RAY Mission Directorate will receive appraisal reports from appraisal agencies along with comments and suggestions.
• Selected cities will submit their SFCPoAs to the RAY Mission Directorate. The SFCPoAs will be evaluated by the Mission Directorate prior to being submitted to CSMC for review and approval.
• Projects up to 100 crores will be sanctioned by the Central Sanctioning and Monitoring Committee.
• The Minister for Housing and Urban Poverty Alleviation's approval is required before projects costing more than 100 crore but less than 300 crore can be approved.
• On the advice of CSMC, projects with a maximum budget of 500 crores will be approved by the Finance Minister and the Minister for Housing and Urban Poverty Alleviation.
• The appropriate authorities will approve any projects over 500 crore, as outlined in the Ministry of Finance's (Expenditure Department) periodically revised blueprint

Frequently Asked Questions