New Delhi, Sep 3: The Cabinet Committee on Economic Affairs (CCEA) Tuesday approved the launch of the Rajiv Awas Yojana (RAY) as a centrally sponsored scheme (CSS).
Aimed at creating a slum-free India, it is to be implemented in mission mode from this year.
An official release said the CCEA has also approved the continuation of Affordable Housing in Partnership Scheme (AHP) as part of RAY with amendments.
The CCEA also decided to continue the Interest Subsidy Scheme for Housing the Urban Poor (ISHUP) and rename it as the Rajiv Rinn Yojana (RRY).
“The CCEA has approved the launch of RAY as a centrally sponsored scheme to be implemented in mission mode during 2013-2022. The Planning Commission has allocated Rs.32,230 crore for its implementation during the 12th five year plan,” the release said.
The pilot phase of RAY ended in June this year.
The release said RAY would provide support to states and central agencies for housing, including rental and transit housing and improvement of civic infrastructure.
RAY will cover all those cities and towns which states will select in consultation with the central government.
The state concerned would give priority to towns with larger number of people living in slums. RAY will also be applicable to “urbanised villages” inside the planning area of the city.
As an integral part of RAY, the CCEA has also approved continuation of AHP with suitable amendments.
The release said norms have been relaxed of AHP and higher central assistance would be provided for dwelling units designed for poor sections to improve private sector participation in affordable housing.
The release said ISHUP scheme proposes to provide interest subsidy of five percent on long tenure loans of 15 to 20 years.
The release said implementation of RAY with AHP would benefit 25 percent of slum dwellers through access to decent shelter, civic and social amenities and creation of affordable housing stock.