Slum-dwellers to get affordable housing, basic facilities

The State government has decided to implement the Rajiv Awas Yojana (RAY) in 10 city corporation limits to facilitate affordable housing for slum-dwellers.

The scheme will cover Mangalore, Hubli-Dharwad, Bellary, Shimoga, Mysore, Bangalore, Tumkur, Gulbarga, Belguam and Davangere cities.

A meeting of the State Cabinet held here on Thursday decided to implement the scheme at a cost of Rs. 10,752 crore in the 10 cities. The Centre would provide financial assistance to the State on the condition of assigning property rights to slum-dwellers. Under the scheme, the State has to provide shelter and basic civic and social services for slum-dwellers.

Briefing presspersons on the Cabinet decisions, Minister for Law and Parliamentary Affairs T.B. Jayachandra said the cost for housing had been estimated at Rs. 7,750.89 crore, infrastructure – Rs. 1,489 crore and social infrastructure – Rs. 123 crore. There would be other expenses, including construction of buildings.

Cost sharing

For infrastructure, the Union government, the State government and urban local bodies would share the cost in the ratio of 50:25:25 respectively. Housing cost would be shared in the ratio of 75:15:10 by the Union government, the State government and the ULBs respectively. Each house would cost Rs. 2.5 lakh.

Under the scheme, the government will take steps to ensure inclusive urban growth by enabling redevelopment of slums with basic amenities and decent housing, with security of tenure, the Minister said.

The State government has decided to submit a proposal to the Centre for extending RAY to 26 tier-two cities, including Chitradurga, Bhadravati, Bijapur, Gadag, Bidar, Hospet, Raichur, Chamarajangar, Gangavathi, Ranebennur, Chikmagalur, Yadgir, Ramanagaram, Doddaballapur, Koppal, Haveri, Madikeri, Karwar, Hassan, Mandya, Udupi, Bagalkot and Sira, he said. A decision had been taken to allot town-wise tenders for expediting works under the Nagorathana scheme. Now, works costing Rs. 1,500 crore had been stopped by contractors of Andhra Pradesh. Under the scheme, town municipal councils and city municipal councils are eligible for Rs. 5-crore and Rs. 15-crore grant each.


The State cabinet has decided to extend the Rashtriya Swasthya Bima Yojana (RSBY), a cashless health insurance cover, and its benefits, to all below the poverty line (BPL) families (98 lakh).

So far, it was extended to 43 lakh BPL families. The extension of the scheme to all BPL families would cost the State exchequer an additional Rs. 11.2 crore a year, Mr. Jayachandra said.

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