Delhi Slum Rehabilitation Policy and PPP Challenges
The Delhi government faces ongoing challenges in rehabilitating slum dwellers despite policy efforts. A recent government-industry task force report has recommended revitalising Delhi’s slum rehabilitation through Public Private Partnerships (PPP). This move aims to unlock the real estate potential of slum lands in central Delhi. However, past attempts at PPP-led rehabilitation have seen limited success. The report suggests policy changes to attract developers and improve project viability.
Slum Demographics and Governance
Delhi has 675 slums housing between 30 to 50 lakh people. Of these, 376 slums are on central government land under the Delhi Development Authority (DDA), while 299 fall under the Delhi Urban Shelter Improvement Board (DUSIB) on Delhi government land. The 2015 Delhi Slum & Jhuggi Jhopri Rehabilitation Policy prioritises in-situ rehabilitation within a 5 km radius of the original site. Eligibility criteria include a minimum of 50 households, slum existence before 2006, and proof of residence before 2015.
Current Progress and Issues
Rehabilitation progress remains slow. Only two in-situ projects, Kalkaji and Swabhiman Apartments, have been completed with about 3,300 flats allotted. On city outskirts, over 52,000 flats are under construction but have low occupancy due to remote locations and poor conditions. Only a fraction of completed flats have been allotted to slum dwellers. The government’s direct funding model has not fully met demand.
Public Private Partnership Model Explained
Under PPP, the government transfers slum land to private developers. Developers build housing for slum dwellers on part of the land and use the rest for commercial projects to recover costs. This approach leverages high-value land in central Delhi. However, only one PPP project, Kathputli Colony, remains incomplete after more than a decade. Attempts to attract developers through multiple tenders failed due to low interest.
Challenges in Developer Participation
Private developers prefer investing in NCR cities like Gurgaon and Noida due to better returns and fewer risks. The commercial viability of PPP slum rehabilitation in Delhi is questioned by experts. Financial constraints and regulatory risks deter investment. Slum dwellers’ resistance to relocation and legal complexities add to challenges. The task force notes the heavy upfront investment in rehabilitation delays commercial gains for developers.
Policy Reforms to Boost PPP Participation
Recent policy changes approved by the Delhi Lieutenant Governor aim to incentivise developers. These include raising Floor Area Ratio (FAR) limits from 400 to 500, allowing unused FAR from rehabilitation plots to be used commercially, and reducing rehabilitation land share from 60% to 40%. The policy now permits clubbing of plots within 5 km to separate rehabilitation and commercial development, easing financial and logistical burdens.
Comparative National Context
Delhi’s slow progress reflects a national trend. The In-situ Slum Rehabilitation (ISSR) vertical under Pradhan Mantri Awas Yojana – Urban (PMAY-U) has performed poorly, making up less than 2% of sanctioned houses. Many ISSR projects across India face delays, cancellations, and incomplete status. Issues include land ownership disputes, political changes, and lack of consensus among slum communities. PMAY-U 2.0 has removed ISSR as a vertical due to these challenges.
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