CURRENT AFFAIRS
CURRENT AFFAIRS
Description
The Delhi government continues to struggle with the rehabilitation of slum dwellers, even with various policy frameworks in place. A recent report by a joint task force of government and industry stakeholders has proposed reviving the slum redevelopment process using a Public-Private Partnership (PPP) model. This model seeks to tap into the high real estate value of centrally located slum lands. However, previous attempts at PPP-led rehabilitation in the capital have yielded limited results. The report emphasizes the need for new policy measures to attract private developers and enhance the feasibility of such projects.
Demographics And Administrative Control
Delhi is home to approximately 675 slum clusters, inhabited by an estimated 30 to 50 lakh people. Of these, 376 are situated on land managed by the Delhi Development Authority (DDA), which falls under the central government, while the remaining 299 are overseen by the Delhi Urban Shelter Improvement Board (DUSIB) under the Delhi government. The existing 2015 Delhi Slum and Jhuggi Jhopri Rehabilitation Policy advocates in-situ redevelopment, ideally within a 5 km radius of the original site. Eligibility for beneficiaries includes slums established before 2006 and proof of residence before 2015, with at least 50 households in the settlement.
Progress And Persistent Bottlenecks
Despite policy guidelines, tangible outcomes have been limited. Only two in-situ projects Kalkaji and Swabhiman Apartments have been successfully completed, offering around 3,300 flats. On the outskirts of the city, over 52,000 housing units are currently under construction, yet many remain unoccupied due to poor location, inadequate infrastructure, and distance from livelihood opportunities. The government's direct funding strategy has struggled to meet the growing demand for rehabilitation.
PPP Model Works
Under the PPP approach, slum land is transferred to private developers who are tasked with constructing housing for eligible slum dwellers. In return, they are permitted to develop a portion of the land for commercial use to recover their investment. This model is seen as particularly promising in high-value areas of central Delhi. However, past attempts notably the Kathputli Colony project have faced delays and remain incomplete even after over ten years. Efforts to attract developers through repeated tenders have largely failed due to poor interest.
Developer Reluctance And Risk Factors
Private firms often prefer investing in nearby cities like Gurgaon or Noida, where regulatory hurdles are fewer, and returns are higher. In Delhi, developers face low profit margins, complex land ownership issues, and resistance from slum residents reluctant to relocate. Furthermore, developers are discouraged by the high initial investment required for rehabilitation, which delays potential commercial returns.
New Incentives To Attract Developers
To improve developer participation, recent policy amendments approved by the Lieutenant Governor of Delhi include several key relaxations:
Increasing the Floor Area Ratio (FAR) from 400 to 500.
Allowing unused FAR from rehabilitation plots to be transferred to commercial plots.
Reducing the land share required for rehabilitation from 60% to 40%.
Permitting the clubbing of plots within a 5 km radius to separate commercial and residential development.
These changes aim to reduce both financial and logistical constraints for developers.
Broader National Trends In ISSR
Delhi’s slow progress mirrors the challenges faced across the country. The In-situ Slum Rehabilitation (ISSR) component of the Pradhan Mantri Awas Yojana Urban (PMAY-U) has underperformed, accounting for less than 2% of total sanctioned homes. Across India, many ISSR projects have been stalled or abandoned due to land disputes, community resistance, and political transitions. As a result, the second phase of PMAY-U has excluded ISSR from its main verticals.
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