Rajiv Gandhi Awas Yojana (RAY) is a scheme launched by the government to provide cheap housing to the urban poor in India. The scheme has been designed to overcome the problem of lack of shelter among the people and to make sure that every citizen of the country has a house which is safe and protects his/her dignity.
The initiative is largely focused on the lower-income groups, people living in slums, and socially disadvantaged sections of the society, who are provided with monetary help for the construction or renovation of their houses, with the main focus being on the development of a city that is inclusive and on housing that is environmentally friendly.
What is the Rajiv Gandhi Awas Yojana?
Rajiv Gandhi Awas Yojana (RAY) is a government scheme of India that was initiated by the Ministry of Housing and Urban Poverty Alleviation (MoHUA) in 2011. The main goal of RAY was to provide housing to the rapidly increasing people in urban areas who do not have proper living conditions. The decision was to encourage urban squatters to change to better accommodation. The objective here was to ensure that by meeting the basic needs of each family, the nation would be able to get rid of slums and other informal dwellings.
RAY was a positive advancement towards urban development in India and housing for all. It sought to take the responsibility of making affordable housing solutions for the economically weaker section (EWS) and the low-income group (LIG) in the country achievable.
Objective of the Rajiv Gandhi Awas Yojana Housing Scheme
The main intent of Rajiv Gandhi Awas Yojana was to bring affordable housing to the urban poor, through slum rehabilitation and existing housing poverty alleviation. The main objectives were,
1. Urban Slum Rehabilitation: The programme wanted to provide the slum dwellers permanent housing with pucca structures (i.e, permanent houses) that allowed them to improve the quality of the slum settlements into self-sustainable communities.
2. In-Situ Rehabilitation: RAY dealt with existing slums on their sites, improving the basic quality of their occupants’ lives; this also preserved their social and cultural fabric, which is important for such communities.
3. Basic Infrastructure Development: The scheme had a strong emphasis on the provision of basic infrastructure (roads, electricity, water supply, sewage, and sanitation). This would positively impact the quality of life for slum dwellers.
4. Empowering Communities: RAY made a very strong commitment to public engagement and community participation in the planning and delivery of housing projects. This created a strong sense of commitment to the community’s needs by putting their needs at the forefront of the planning process.
5. Financial Inclusion: RAY also sought financial inclusion for economically weaker sections of society by linking subsidies on housing and subsidised loans, which would empower them to own their own house, and hence secure their future.
Eligibility for Rajiv Gandhi Awas Yojana Housing Scheme
In order to ensure that benefits go to the right individuals, the Rajiv Gandhi Awas Yojana implemented very strict eligibility conditions. These included the following categories,
- Category A: People who live in urban regions with a population of five lakh or more are classified as being in Category A, which has a five lakh rupee maximum funding restriction per Dwelling Unit (DU).
- Category B: This group includes residents of cities with fewer than five lakh people and receives four lakh rupees in financing per Dwelling Unit (DU).
- Category C: People who reside in urban regions of special category states (such as Jammu & Kashmir, Himachal Pradesh, and Uttarakhand) and the northeastern states are classified as belonging to category C. Regardless of the population of the city, it receives a fixed stipend of Rupees 5 lakh.
Documents Required to Apply for RGAY
To process the application, the applicants must provide various documents for eligibility verification. The documents included the following:
1. Identity Proof: Valid identification proof, such as an Aadhaar card, a voter ID, or a passport, which serves as the primary identification of applicants.
2. Income Proof: Salary slips, income certificates, and income tax returns are documents approved to show evidence of the applicant’s finances to identify if the applicant is EWS or LIG.
3. Address Proof: Utility bills, ration cards, or other government-issued documents that confirm the applicant’s residence in the slum or the urban area.
4. Photographs: Passport-sized photographs of all family members to support the applicant’s identity and family identity verification.
5. Other Documentation: Some States required other documents and supporting documentation, such as a community certificate that showed evidence of being a part of backward castes or scheduled tribes.
How to Apply for the Rajiv Gandhi Awas Yojana Housing Scheme
1. Visit the Official Portal: Applicants should visit the state or central government portal.
2. Registration: Fill in the application sheet with all required details, including personal and income details.
3. Document Submission: Submit all required documents for verification.
4. Verification and Approval: Once verified, selected beneficiaries will get approved for housing.
Types of Dwelling Units under Rajiv Gandhi Awas Yojana Housing Scheme
The Rajiv Gandhi Awas Yojana divided cities and towns into three categories based on population size and the special needs of specific regions. Each category had tailored housing schemes,
1. Category A – Cities with Population Above 5 Lakhs
- These are large metropolitan areas with significant slum populations. RAY provided substantial funding for rehabilitation in such cities, aiming to transform urban slums into well-planned neighborhoods.
- Funding: Central assistance was higher (upto 5 lakhs) for these cities due to the scale of the housing needs.
2. Category B – Cities with Population Below 5 Lakhs
- These towns, while smaller than Category A cities, also had a notable number of slum dwellers. The RAY scheme here focused on building affordable homes and upgrading existing slum settlements.
- Funding: Central assistance was moderate (upto 4 lakhs) for these cities, with state contributions playing a more significant role.
3. Category C – Special Category States
- This included states like Jammu & Kashmir, Uttarakhand, Himachal Pradesh, and the North Eastern states. These regions have unique geographical challenges and a different pace of urbanisation.
- Funding: Additional central assistance (of upto 5 lakhs) was provided as the construction involved overcoming logistical challenges, such as terrain and climatic conditions.
Funding Pattern Under RAY
The Rajiv Gandhi Awas Yojana’s funding approach was established regarding the roles of the central and state governments, as well as beneficiaries.
1. Central Assistance: The central government provided the vast majority of funding to provide for the construction of affordable housing units and the required infrastructure. This funding was meant to help the states in dealing with the financial implications.
2. State Contribution: The state government was expected to provide some of the funding for the affordable housing units, particularly in relation to the development of local infrastructure (e.g., roads, services, etc.).
3. Beneficiary Contribution: The beneficiaries were also expected to contribute to the costs of the affordable housing units, albeit this contribution was almost always a very small portion of the overall costs of the unit. The contribution was meant to provide a measure of ownership and responsibility to beneficiaries with respect to their new homes.
Infrastructure Provided Under the Scheme
RAY was not only about the building of houses, but it also aimed at providing the necessary infrastructure for these houses to be habitable.
- Water Supply: The plan made sure that there was pure water for drinking available in the newly built houses and the rehabilitation projects.
- Sanitation: Along with each house, modern sanitation facilities were installed, such as toilets and sewage systems, for the betterment of hygiene.
- Electricity: The houses were given good electrical connections, and the areas around were supplied with street lighting.
- Roads: To ensure that the internal roads and approach roads were developed for easy connectivity to other parts of the city or town.
- Community Infrastructure: The scheme was also focused on building community centers, schools, and healthcare facilities so that residents could have access to basic services.
Challenges and Limitations
Although the RAY scheme had admirable aims, it faced a myriad of challenges, including:
1. Implementation Delays: Many of the projects took longer than expected due to bureaucratic complexities, land acquisition delays, and funding limitations.
2. Inadequate Funding: The scheme faced issues around available resources that restricted the ability to meet ongoing housing demand.
3. Beneficiary Identification: Identifying and logging eligible beneficiaries was burdensome, resulting in delays.
Transition from Rajiv Gandhi Awas Yojana to PMAY
In the context of accessible housing, the Pradhan Mantri Awas Yojana (PMAY) was implemented in 2015, replacing the Rajiv Gandhi Awas Yojana (RAY) and changing the way the government approached affordable housing.
RAY was a landmark scheme for providing housing to the urban poor, but had limited impact, mainly due to the slow delivery of actual housing, inadequate funding, and delays in implementation. In PMAY, a clear transition was made from RAY, with greater scope for accessible housing, providing housing in both rural and urban areas, and elements like Credit-Linked Subsidy Scheme (CLSS) and Affordable Housing in Partnership (AHP).
Achievements and Impact Assessment
Overall, RAY provided housing for many urban poor families; however, it could have done better, but was limited by slow delivery, poor funding, and poor implementation of housing supply constraints. It is hoped that PMAY can better address the problems faced in delivering housing and have a more systematic approach to tackling these problems, thereby having a wider reach in housing delivery.
Conclusion
The Rajiv Gandhi Awas Yojana has made significant strides in tackling urban poverty and supplying low-cost homes; yet, the realisation of the scheme faced many obstacles. The advent of PMAY has made the housing sector a far brighter place with the blossoming of numerous affordable housing projects, which were the need of the hour for a faster, better, and more comprehensive solution to the housing problem of the urban poor in India.
Apoorva H P Achar