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Cabinet okays Rs 20-bn housing plan for urban poor

The Union Cabinet on Tuesday approved a Rs 20 billion housing and sanitation scheme for the urban poor and slum dwellers across the country.

The Valmiki Ambedkar Awaas Yojana, announced by the Prime Minister Atal Bihari Vajpayee on Independence Day, will be implemented forthwith, Urban Development Minister Ananth Kumar told reporters after the cabinet meeting.

Kumar said that while Rs 10 billion would be given as grant, a similar amount would be provided as loan.

Through the scheme, 400,000 houses per year would be provided to slum dwellers and urban poor in 5161 towns and cities, he said.

The Minister said it was the first ever housing programme for urban poor and slum dwellers since Independence.

Under the scheme, Rs 60,000 per house had been earmarked for houses in the megapolises of Bombay, Delhi and Calcutta, Rs 50,000 in cities having a population between one million and ten million and Rs 40,000 in other towns, he said.

Kumar said while 50 per cent of the cost would be given as grant, the balance would be provided as loan repayable in 15 years.

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