To ensure a slum-free India in five years, the Centre on Saturday asked the states to contribute fully in this regard.
Housing and Poverty Alleviation Minister Kumari Selja said states should set up regulatory authorities for this.
At a press conference, she said a bill will be drafted soon and tabled in the winter session of Parliament.
She said before finalising the bill, consultations will be held with various stakeholders.
Her ministry is also working on in-situ rehabilitation of slum-dwellers by building houses at the same spot under the flagship Jawaharlal Nehru National Urban Renewal Mission.
“We are also encouraging public-private-partnership and the ministry will provide viability gap funding, wherever required,” she said.
Ms. Selja said under JNNURM, 1.4 million houses have been sanctioned “though we are aware, needs are much more“.
She said the concept paper on Rajiv Awas Yojna (RAY) has been prepared and it has received in-principle clearance from the Planning Commission.
The Minister said the Delhi government should make the most of the schemes offered by her ministry to rehabilitate slum-dwellers ahead of the Commonwealth Games next year.
Referring to the sizeable population in Mumbai slums, she said 50 per cent of the population in the country’s commercial capital lived in such habitations.
She, however, noted that the contribution of the urban poor to GDP was substantial.