Slum Redevelopment and Urban Housing

What to remember

• A slum is a congested, poorly built area with weak water, sanitation and drainage. It can be improved in place, rebuilt in place, or moved to a new site.
• Central housing programmes moved from VAMBAY and JNNURM to Rajiv Awas Yojana and then to Pradhan Mantri Awas Yojana (Urban), "Housing for All", launched in 2015.
• PMAY (Urban) has four verticals: In-situ Slum Redevelopment, Credit Linked Subsidy, Affordable Housing in Partnership and Beneficiary-led Construction.

1. Slums and urban housing: basic ideas

Urban housing need comes from three things: families with no home, families living in very poor homes, and new families formed every year. Housing shortage = number of households minus number of good dwellings.

A slum is a residential area where houses are unfit for living because of old age, overcrowding, poor design, or lack of ventilation, light, water and sanitation. The Slum Areas (Improvement and Clearance) Act, 1956 allowed a government to declare an area as a slum. The Census of India uses three groups:

Houses are called pucca (strong walls and roof of durable material), semi-pucca and kutcha (mud, thatch, grass). Many urban poor also live as tenants, on pavements, or in shelters.

Why slums grow: fast migration to cities, high land and rent prices, few cheap plots, low incomes, and weak planning for the poor. Slums are often on low-lying land, canal banks, railway land or hill slopes, where floods and fires are a risk.

2. Approaches to slum redevelopment

Good practice today is to improve in place wherever possible, because it keeps families near jobs. Relocation is used only when land is unsafe (flood path, railway track, under a high-tension line) or needed for a public project.

Basic services to be given in a slum: safe drinking water, individual or community toilets, drains, solid waste collection, roads and footpaths, street lights, and access to schools and health centres.

Worked example 1. A slum area is 2 hectares and has 400 households. Density = 400 / 2 = 200 households per hectare.

Worked example 2. One hectare is 10,000 sq m. If FAR for the redevelopment is 2.5, total floor area = 10,000 x 2.5 = 25,000 sq m. If each unit needs 25 sq m of floor area including its share of stairs and passage, the number of units is 25,000 / 25 = 1,000.

Worked example 3. A town has 20,000 households and 17,500 good dwellings. Housing shortage = 20,000 - 17,500 = 2,500.

3. Programmes before PMAY

4. Pradhan Mantri Awas Yojana (Urban)

Launched in 2015 with the goal of Housing for All. It covers statutory towns. PMAY-U 2.0 (approved in 2024) continues with four verticals: BLC, AHP, Affordable Rental Housing and an Interest Subsidy Scheme (ISSR is dropped). Its four verticals:

Income groups are EWS (Economically Weaker Section), LIG (Low Income Group) and MIG (Middle Income Group). The scheme sets a size for the house: the carpet area of an EWS house is up to 30 sq m, and for an LIG house up to 60 sq m. The house is generally registered in the name of the woman of the family, or jointly. A house with toilet, water and electricity is expected.

Affordable Rental Housing Complexes (ARHC) were launched in 2020 for migrant workers and the urban poor. Existing government-funded empty houses can be turned into rental homes, and private bodies can build rental homes.

5. Other tools and institutions

• Cross-subsidy: the builder sells a part of the project at market price and uses the profit to house the poor free or at low cost.
• Land as a resource: extra FAR or TDR is given to the builder for rebuilding the slum.
• Land pooling: owners give land to the authority, which develops it and returns a share of developed plots.
• Reservation: a share of plots or flats in new projects is kept for EWS and LIG families.
• RERA 2016: protects buyers of flats by regulating builders.
• Andhra Pradesh State Housing Corporation: the state agency for public housing. Urban poverty work in municipal areas is done through the Mission for Elimination of Poverty in Municipal Areas (MEPMA) and self-help groups; check the latest status of such bodies before an exam.
• Municipal role: identify slums, prepare a slum-free city plan, give basic services, and survey beneficiaries. The Ward Planning Secretary supports this at ward level by field checks of homes, land status and basic services.

6. Challenges

• Clear land titles are missing.
• Families who work near the old site resist moving far away.
• Builders may not find the project profitable.
• Poor maintenance of flats and shared facilities.
• New slums form if low-cost land and rental housing are not provided.

7. Steps in a slum redevelopment project

• 1. Survey: map each house, count families, note land ownership and risk.
• 2. Eligibility: decide which families qualify, using a cut-off date and proof of residence.
• 3. Plan: choose upgradation, in-situ or relocation, with the consent of the residents.
• 4. Transit housing: give a temporary home to families while new flats are built.
• 5. Build: construct houses with water, toilets, drains, roads and open space.
• 6. Allot and register: give each family a house, preferably in the woman's name.
• 7. Maintain: form a residents' group to look after shared services.

The key lesson is that people must be part of the plan. Projects that ignore the wish of the residents often fail.

Exam traps

• In-situ means on the same land; relocation means a new site.
• Upgradation improves services and keeps houses; it is not clearance.
• Notified slum is declared under law; identified slum is found by the census on size and condition.
• ISSR is for slum land; BLC is for building on one's own land.
• CLSS is an interest subsidy on loans, not a free house.
• JNNURM and VAMBAY are earlier schemes, not part of PMAY.
• EWS carpet area limit is smaller than the LIG limit.
• RAY (2011) aimed at slum-free cities; PMAY (2015) says Housing for All.

One-liners

• 1. The Slum Areas (Improvement and Clearance) Act is from 1956.
• 2. HUDCO was set up in 1970.
• 3. VAMBAY began in 2001.
• 4. JNNURM began in 2005 and had BSUP and IHSDP for housing.
• 5. Rajiv Awas Yojana aimed at slum-free cities.
• 6. PMAY (Urban) was launched in 2015.
• 7. PMAY has four verticals: ISSR, CLSS, AHP and BLC.
• 8. EWS house carpet area is up to 30 sq m.
• 9. LIG house carpet area is up to 60 sq m.
• 10. Housing shortage = households minus good dwellings.
• 11. Sites and services give serviced plots to families.
• 12. ARHC is for rental housing for migrant workers and the urban poor.

Practice questions

1. Which Act of 1956 allowed the declaration and clearance of slum areas?

   1. Rent Control Act
   2. Urban Land Ceiling Act
   3. Slum Areas (Improvement and Clearance) Act
   4. Land Acquisition Act
   Answer

   C. Slum Areas (Improvement and Clearance) Act

   The 1956 Act is the central law on slum areas.

2. The Census of India identifies a slum as a compact area of about

   1. 300 persons or 60 to 70 households
   2. 50 persons or 10 households
   3. 10 persons or 2 households
   4. 1,000 persons or 500 households
   Answer

   A. 300 persons or 60 to 70 households

   This is the 'identified slum' definition.

3. Housing shortage is calculated as

   1. households plus dwellings
   2. population minus households
   3. households minus good dwellings
   4. dwellings minus rooms
   Answer

   C. households minus good dwellings

   Shortage = households - good dwellings.

4. A slum area of 3 hectares has 600 households. The density is

   1. 300 households per hectare
   2. 1,800 households per hectare
   3. 20 households per hectare
   4. 200 households per hectare
   Answer

   D. 200 households per hectare

   600 / 3 = 200.

5. Rebuilding flats for slum families on the same land is called

   1. in-situ redevelopment
   2. sites and services
   3. relocation
   4. land pooling
   Answer

   A. in-situ redevelopment

   In-situ means in the same place.

6. Moving slum families to a new site is called

   1. upgradation
   2. relocation
   3. tenure regularisation
   4. in-situ redevelopment
   Answer

   B. relocation

   Relocation shifts families elsewhere.

7. Providing serviced plots to families who build their own houses is the

   1. sites and services approach
   2. ISSR approach
   3. cross-subsidy approach
   4. rent control approach
   Answer

   A. sites and services approach

   Plots with services are given; the family builds.

8. Giving legal rights to the land occupied by a family is called

   1. relocation
   2. rezoning
   3. tenure regularisation
   4. upgradation
   Answer

   C. tenure regularisation

   Regularisation gives a legal title or patta.

9. Which scheme was launched in 2015 with the goal of Housing for All in urban areas?

   1. VAMBAY
   2. Rajiv Awas Yojana
   3. IHSDP
   4. Pradhan Mantri Awas Yojana (Urban)
   Answer

   D. Pradhan Mantri Awas Yojana (Urban)

   PMAY (Urban) is the 2015 scheme.

10. How many verticals does PMAY (Urban) have?

    1. Six
    2. Four
    3. Two
    4. Three
    Answer

    B. Four

    ISSR, CLSS, AHP and BLC.

11. ISSR in PMAY stands for

    1. In-situ Slum Redevelopment
    2. Interim Shelter and Slum Relief
    3. Integrated Slum Settlement Rule
    4. Indian Slum Safety Rating
    Answer

    A. In-situ Slum Redevelopment

    ISSR uses slum land as a resource.

12. CLSS in PMAY is an

    1. rent control rule
    2. free plot scheme
    3. interest subsidy on home loans
    4. land tax rebate
    Answer

    C. interest subsidy on home loans

    CLSS reduces the interest cost of home loans.

13. Under PMAY, Beneficiary-led Construction (BLC) gives help to

    1. a builder to sell flats
    2. a bank to lend to builders
    3. a city to buy slum land
    4. a family to build or improve its own house
    Answer

    D. a family to build or improve its own house

    BLC supports individual house construction.

14. Which scheme began in 2005 with BSUP and IHSDP for housing the urban poor?

    1. NULM
    2. PMAY
    3. JNNURM
    4. RAY
    Answer

    C. JNNURM

    JNNURM had BSUP and IHSDP components.

15. Rajiv Awas Yojana mainly aimed at

    1. street vending licences
    2. crop insurance
    3. rural roads
    4. slum-free cities
    Answer

    D. slum-free cities

    RAY aimed at slum-free cities.

16. VAMBAY was launched in

    1. 2020
    2. 2001
    3. 2015
    4. 1956
    Answer

    B. 2001

    Valmiki Ambedkar Awas Yojana began in 2001.

17. The financial institution set up in 1970 to fund housing and urban projects is

    1. HUDCO
    2. SIDBI
    3. NABARD
    4. EXIM Bank
    Answer

    A. HUDCO

    HUDCO began in 1970.

18. The carpet area limit of an EWS house under PMAY (Urban) is up to

    1. 150 sq m
    2. 60 sq m
    3. 90 sq m
    4. 30 sq m
    Answer

    D. 30 sq m

    EWS up to 30 sq m; LIG up to 60 sq m.

19. The carpet area limit of an LIG house under PMAY (Urban) is up to

    1. 100 sq m
    2. 200 sq m
    3. 60 sq m
    4. 30 sq m
    Answer

    C. 60 sq m

    LIG up to 60 sq m.

20. Affordable Rental Housing Complexes were meant mainly for

    1. migrant workers and the urban poor
    2. large industries
    3. foreign tourists
    4. government ministers
    Answer

    A. migrant workers and the urban poor

    ARHC provides rental homes to such groups.

21. A builder sells part of a project at market price and uses the profit to house the poor. This is

    1. sites and services
    2. cross-subsidy
    3. tenure regularisation
    4. land pooling
    Answer

    B. cross-subsidy

    Cross-subsidy funds low-cost housing.

22. Land pooling means

    1. the government buys land at once for cash only
    2. owners give land to an authority and receive a share of developed plots
    3. slum land is sold in an auction
    4. tenants are forced to leave
    Answer

    B. owners give land to an authority and receive a share of developed plots

    Pooling shares the gains of development.

23. Slums are most commonly at higher risk of

    1. excess parks
    2. too much open space
    3. very low density
    4. floods, fires and disease
    Answer

    D. floods, fires and disease

    Poor services and unsafe land raise risk.

24. A town has 12,000 households and 10,400 good dwellings. The housing shortage is

    1. 1,600
    2. 1,200
    3. 22,400
    4. 2,600
    Answer

    A. 1,600

    12,000 - 10,400 = 1,600.

25. One hectare of slum land is redeveloped with FAR 2.0. If each unit needs 25 sq m of floor area, the number of units is

    1. 400
    2. 1,000
    3. 800
    4. 500
    Answer

    C. 800

    10,000 x 2 = 20,000 sq m; 20,000 / 25 = 800.

26. A slum of 4 hectares has 1,000 households. If 150 households are relocated, the density of the remaining households is

    1. 250 households per hectare
    2. 187.5 households per hectare
    3. 212.5 households per hectare
    4. 150 households per hectare
    Answer

    C. 212.5 households per hectare

    850 / 4 = 212.5.

27. Relocation of a slum is most justified when the slum is

    1. near a shop
    2. on land that is unsafe, such as a flood path
    3. beside a park
    4. close to a bus stop
    Answer

    B. on land that is unsafe, such as a flood path

    Unsafe land cannot be improved in place.

28. Which of the following is NOT a basic service for a slum?

    1. A private golf course
    2. Toilets
    3. Safe drinking water
    4. Drains
    Answer

    A. A private golf course

    Basic services are water, sanitation, drainage and roads.

29. Consider the statements. 1. Slum upgradation improves services without moving families. 2. In-situ redevelopment rebuilds homes on the same land. Which is/are correct?

    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
    Answer

    C. Both 1 and 2

    Both statements describe the approaches correctly.

30. Consider the statements. 1. PMAY (Urban) has a vertical called CLSS. 2. PMAY (Urban) was launched before JNNURM. Which is/are correct?

    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
    Answer

    A. 1 only

    PMAY was launched in 2015; JNNURM in 2005.

31. Consider the statements. 1. A notified slum is declared by a state or local body under law. 2. An identified slum is found by the Census on size and condition. Which is/are correct?

    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
    Answer

    C. Both 1 and 2

    Both match the Census groups.

32. Consider the statements. 1. CLSS gives a free house to every family. 2. CLSS is an interest subsidy on loans. Which is/are correct?

    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
    Answer

    B. 2 only

    CLSS reduces interest on a loan; it does not give a free house.

33. Consider the statements. 1. Relocation always keeps families close to their work. 2. Relocation can cause loss of livelihood. Which is/are correct?

    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
    Answer

    B. 2 only

    Relocation to far sites can harm livelihood.

34. Consider the statements. 1. The EWS carpet area limit is 30 sq m. 2. The LIG carpet area limit is 60 sq m. Which is/are correct?

    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
    Answer

    C. Both 1 and 2

    Both limits are correct.

35. Consider the statements. 1. Sites and services gives plots with water and roads. 2. In this approach the family builds its own house. Which is/are correct?

    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
    Answer

    C. Both 1 and 2

    Both statements describe sites and services.

36. Consider the statements. 1. RERA 2016 regulates builders of flats. 2. Land pooling forces owners to sell land at once for cash. Which is/are correct?

    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
    Answer

    A. 1 only

    Pooling returns a share of developed plots; it is not a forced sale.

37. Consider the statements. 1. ARHC provides rental housing. 2. ARHC was started in 2020. Which is/are correct?

    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2
    Answer

    C. Both 1 and 2

    Both are correct.

38. Match the programme with its feature. P. VAMBAY Q. RAY R. PMAY (Urban) 1. Housing for All 2. Slum-free cities 3. Housing and toilets for slum families

    1. P-1, Q-2, R-3
    2. P-2, Q-3, R-1
    3. P-3, Q-1, R-2
    4. P-3, Q-2, R-1
    Answer

    D. P-3, Q-2, R-1

    VAMBAY: housing and toilets; RAY: slum-free; PMAY: Housing for All.

39. Match the PMAY vertical with its meaning. P. ISSR Q. CLSS R. BLC 1. Interest subsidy on loans 2. Build own house with help 3. Redevelop slum land

    1. P-2, Q-1, R-3
    2. P-1, Q-3, R-2
    3. P-3, Q-2, R-1
    4. P-3, Q-1, R-2
    Answer

    D. P-3, Q-1, R-2

    ISSR rebuilds slums; CLSS is interest subsidy; BLC is self-built houses.

40. Match the approach with its feature. P. Upgradation Q. Relocation R. Tenure regularisation 1. Gives legal right to land 2. Improves services in place 3. Moves families to a new site

    1. P-1, Q-2, R-3
    2. P-3, Q-2, R-1
    3. P-2, Q-1, R-3
    4. P-2, Q-3, R-1
    Answer

    D. P-2, Q-3, R-1

    Upgradation improves services; relocation moves; regularisation gives rights.

41. The urban livelihoods mission started in 2013 mainly supports

    1. skills, self-help groups and shelters for the urban homeless
    2. canal irrigation
    3. rural road building
    4. crop procurement
    Answer

    A. skills, self-help groups and shelters for the urban homeless

    NULM focuses on urban livelihood and shelters.

42. In the ward secretariat system, the Ward Planning Secretary can support slum work by

    1. running the railway
    2. field checks of homes, land status and services
    3. setting interest rates
    4. printing currency notes
    Answer

    B. field checks of homes, land status and services

    Field verification helps municipal slum plans.

43. Which factor does NOT push slum growth?

    1. Fast migration to cities
    2. High land and rent prices
    3. Low incomes
    4. Plenty of cheap, serviced urban plots
    Answer

    D. Plenty of cheap, serviced urban plots

    Cheap serviced plots would reduce slum growth.

44. Pucca houses are those with

    1. mud walls and thatch roof
    2. only plastic sheets
    3. no walls
    4. strong walls and roof of durable material
    Answer

    D. strong walls and roof of durable material

    Pucca means made of durable material.

45. Reserving a share of flats in new projects for EWS and LIG families is called

    1. rezoning
    2. reservation for weaker sections
    3. land pooling
    4. tenure regularisation
    Answer

    B. reservation for weaker sections

    Reservation helps provide affordable units.