Cities like Mumbai are widely known to have failed in controlling the rapid growth of slums, often to a scale – like Dharavi – where they acquire near cult status. Unfortunately, despite all the fame and infamy, the solutions to the dark side of urbanisation have been few and far in between.

IndiaSpend’s Prachi Salve revisits the Jawaharlal Nehru Urban Renewal Mission (JNNURM) that was launched in 2005 to tackle these very issues of urbanisation. More specifically, she focuses on the Mission’s two sub-missions: Basic Services to the Urban Poor (BSUP) targeting 65 mission cities and Integrated Housing and Slum Development Programme (IHSDP).

Let’s understand the scale of the problem first. An estimated 26% of urban India still subsists on income below the poverty line. More than 80% of their income is spent on food and energy, leaving little for anything else. An estimated 93 million people (in 2011) were living in slums that lack civic and social amenities like clean drinking water and security.

A quarter of India’s urban population lives in notified and non-notified slums –as high as 54% in Mumbai, 46% in Faridabad, 45% in Aligarh and 44% in Meerut (2001 Slum Census data). This shows the failure of the urban planning system and urban land management practices that have not been able to adapt and accommodate the urban poor.

Although BSUP and IHSDP managed to stir some interest, they could not facilitate the granting of legal property rights to the urban poor. Property or ownership rights, most economists and social scientists would argue, are important steps in empowerment and urban poverty alleviation. A new programme - Rajiv Awas Yojana (RAY) - hopes to address this gap.

RAY, launched in June 2011, plans to tackle the slum problem in a holistic manner. It proposes to use a multi-pronged approach that brings existing slums within the formal system and enables them to avail of the same basic amenities as the rest of the city or town.

The scheme is expected to cover 250 cities by the end of the Planning Commission’s 12thPlan (2012-2017). In the first or the preparatory phase of the scheme, nearly Rs 100 crore has been released among 162 cities. Uttar Pradesh (UP) has the highest number of cities (19) and a total of Rs.7.33 crorereleased under the scheme followed by Maharashtra (18 cities, Rs.9.45crore).

The selection of the cities will be done by consultation, and the states have been asked to include mission cities of JNNURM in the scheme. Cities with a population of more than 0.3 million and other smaller cities with due consideration to the pace of growth of slums, pre-dominance of minority population and areas where property rights are assigned will also be considered for the scheme.

Table 1: Towards slum-free India

Name of the stateAmount released (in Rs crore)Cities
Andhra Pradesh14.4211
Arunachal Pradesh1.112
Assam0.761
Bihar1.914
Chhattisgarh1.834
Delhi9.82DMC
Goa1.123
Gujarat4.328
Haryana1.513
Himachal Pradesh0.641
J&K2.376
Jharkhand2.064
Karnataka48
Kerala2.636
Madhya Pradesh2.886
Maharashtra9.4518
Manipur0.561
Meghalaya0.961
Mizoram4.678
Nagaland1.082
Orissa1.846
Puducherry0.792
Punjab5.835
Rajasthan2.818
Sikkim0.621
Tamil Nadu4.809
Tripura0.551
UP7.3319
Uttarakhand1.153
West Bengal4.233
Daman & Diu0.582
Dadra and Nagar Haveli0.432
Andaman and Nicobar0.761
Lakshadweep0.153

(Source: Ministry of Housing & Urban Poverty Alleviation)

Services For The Poor

The BSUP was planned to ensure provision of basic infrastructure services to the urban poor at affordable rates. The duration of the mission is 7 years and was launched in 2005. The mission is being carried out in 65 selected mission cities.

The central assistance has been given in the form of additional conditional assistance (ACA). The beneficiaries have to contribute 12% for houses while SC/ST/BC/OBC/PH and other weaker sections will have to contribute 10%.

An Integrated Approach

The IHSDP is designed for slum improvement and rehabilitation for smaller town /cities. The central assistance, in general, under the programme is 80% while special category states will receive 90% of central assistance. The beneficiaries will have to contribute 12% for houses while SC/ST/BC/OBC/PH and other weaker sections will have to contribute 10%.

Progress of BSUP and IHSDP

Over 1 million housing projects have been sanctioned under BSUP out of which over 0.36 million have been completed i.e. a completion rate of only 36%. There are 2.24 lakh dwelling projects under progress. The highest numbers of dwelling projects have been allotted to West Bengal with 0.16 million followed by Maharashtra (0.15 million) and Andhra Pradesh (0.14 million).

Fund allocation for BSUP is Rs. 16,356 crore out of which the central assistance is Rs. 14,805 crore. Additional central assistance of Rs. 22,116.28 crore has been released out of which Rs11, 448 crore has been utilised.

The best performers (in terms of project completion) within BSUP are Tripura with 100% completion followed by Gujarat (72.5%) and Haryana (87.5%). While under IHDSP, the best performers are Daman & Diu (87.5% with 14 out 16 projects completed), followed by Karnataka (84% with 14,647out of 17,237 projects completed).

Total funds allocated for IHSDP is Rs 6,828 crore. While the additional central assistance released is Rs 4,320 crore, Rs 1,225 crore has been utilised. The number of IHSDP projects completed are 0.43 million units out of the total approved 0.57 million units i.e., a completion rate of 75.6%.

Table 2: Housing For the Poor

Name of the stateSanctioned dwelling projects under BSUPCompleted dwelling projects under BSUPSanctioned dwelling projects under IHSDPCompleted dwelling projects under IHSDP
Andaman and Nicobar00400
Andhra Pradesh13,95496,05939,94523,624
Arunachal Pradesh996921760
Assam2,2603528,6681,270
Bihar22,37235228,6232,209
Chandigarh25,72812,73600
Chhattisgarh35,088017,9222,901
Dadra Nagar Haveli001440
Daman & Diu001614
Delhi67,78413,82000
Goa1550700
Gujarat1,13,48879,75626,0023,800
Haryana3,2482,85616,8036,559
Himachal Pradesh636020430
Jammu & Kashmir6,6773447,623523
Jharkhand16,724011,5440
Karnataka28,28817,89917,23714,647
Kerala23,57712,06826,29513,648
Lakshadweep0000
Madhya Pradesh41,4468,73222,9101,543
Maharashtra1,52,22356,3861,18,10816,112
Manipur1,25002,829832
Meghalaya76816091248
Mizoram1,0961351,950820
Nagaland3,5041,270985480
Orissa2,50891813,0973,064
Puducherry2,9643584320
Punjab7,3761,00010,6050
Rajasthan11,15176545,9365,700
Sikkim25452390
Tamil Nadu91,41831,82137,71525,023
Tripura2562563,1151,566
Uttar Pradesh68,21729,14947,39912,808
Uttrakhand1,658545,4101,008
West Bengal1,58,79662,06852,66636,954
Total10,31,76042,9585,67,2591,74,973

(Source: Ministry of Housing & Urban Poverty Alleviation)

Key Concerns

A key reason for the weak performance of the two programs - BSUP and IHDSP- is land acquisition, especially in cities. Another issue is that detailed project reports and identification of beneficiaries is very difficult. This leads to resistance from beneficiaries at the time of the execution.

Even though BSUP and IHSDP have been moderate success stories and have managed to address some problems of the urban poor, these schemes, like other JNNURM projects, have also suffered from delays in execution, leading to resistance from beneficiaries.

So, the point is not lack of resources but lack of in-house capacity of urban local bodies. And if the new programme, Rajiv Awas Yojana, has to succeed, it has to focus on the key area of in-house capacity building.

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