CCEA approves launch of Rajiv Awas Yojana

The Cabinet Committee on Economic Affairs (CCEA) has approved the launch of the Rajiv Awas Yojana (RAY) as a Centrally Sponsored Scheme (CSS) to be implemented in mission mode during 2013-2022.

The CCEA has also approved the continuation of Affordable Housing in Partnership Scheme (AHP) as part of RAY with amendments. It has also been decided to continue the Interest Subsidy Scheme (ISS) for Housing the Urban Poor (ISHUP) and rechristen it as the Rajiv Rinn Yojana (RRY). This will be implemented as a stand alone Central Sector Scheme.

The Planning Commission has allocated Rs. 32,230 crore for implementation of RAY during 12th Five Year Plan.

The RAY will provide support to States/Union Territories (UTs) and Central Government agencies for providing housing, including rental and transit housing, development/improvement of basic civic and social infrastructure and operation and maintenance of assets created under the scheme. The RAY will cover all cities and towns, the selection of which will be made by the States in consultation with the Centre.

The states would required to include cities with religious/historic/culture/heritage and tourist importance and other cities taking into account the criterion of pace of growth of the city/slums within the city; predominance of SC/ST /minority population where property rights already stand assigned.

The concerned state 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.

The AHP which was launched in 2009 was dovetailed under RAY after its launch in 2011. As an integral part of RAY, CCEA has also approved continuation of implementation of Affordable Housing in Partnership (AHP) Scheme with suitable amendments.

Earlier, central assistance under the scheme was limited to Rs. 50,000 per DU or 25 percent of the cost of all civic services (external and internal) whichever is lower.

This assistance was to be given as subsidy for project developers both in private and public sector.

As per the recommendations of the Affordable Housing Task Force (AHTF) constituted by Ministry the scheme has been amended to provide Rs. 75,000 per economically Weaker Section / Low Income Groups (EWS/LIG) dwelling unit for housing and internal development components with an objective to improve private sector participation in affordable housing.

The ISHUP scheme will be continued as a central sector scheme to be called RRY in the 12th Plan period. It is proposed to provide interest subsidy of 5 percent on long tenure loans of 15 to 20 years, limited to Rs.5 lakh borrowed by EWS/LIG; with ceiling of Rs. 8 lakh loan for LIG.

The launch of the implementation of RAY with AHP will benefit 25 percent of slum dwellers through access to decent shelter, civic and social amenities and creation of affordable housing stock.