As in JNNURM, the goals of RAY will be driven and incentivised by the provision of central support for slum redevelopment and construction of affordable housing conditional to a set of reforms necessary for urban development to become inclusive. Annexure II describes the admissible and inadmissible components currently envisaged under RAY.

As regards reforms under RAY, security of tenure through entitlement will be critical for the overarching aim of promoting inclusive cities. Accordingly, Central Assistance under RAY will be predicated on the condition that States/UTs assign legal title to slum-dwellers over their dwelling space. The other reforms include the continuation of the three pro poor reforms of JNNURM till they are legislated and internalised as part of the system; legislation for property rights to all slum dwellers; reform to the rental and rent control laws regarding urban housing; and review and amendment to the legislations, rules and regulations governing urban planning and development structures and systems towards an adequate response to the demands, process and pace of urbanisation. The three pro poor reforms under JNNURM are reiterated as follows:

  • Internal earmarking within local body budgets for basic services to the urban poor
  • Provision of basic services to urban poor including security of tenure at affordable prices, improved housing, water supply, sanitation and ensuring delivery of other already existing universal services of the government for education, health and social security; and
  • Earmarking at least 20-25% of developed land in all housing projects (both public and private agencies) for EWS/LIG category with a system of cross-subsidization.