The National Slum Development Program (NSDP), launched in 1996, aims to improve urban slum infrastructure and living conditions through a mix of loans and grants. While it has covered 2401 slums, its effectiveness is limited as it does not address illegal or non-notified slums, and funding inadequacies hinder substantial progress. Key challenges, including low investment per slum dweller and lack of comprehensive planning, necessitate better governance and resource allocation to effectively tackle urban poverty.

2. submitted by-
sumit ranjan (ar/12/834)
chetan sood (ar/12/805)
8th sem.
submitted to-
Ar Jaspreet Kaur

3.  The National Slum Development Program (NSDP) was launched in 1996.
 Annually, the Program provides about Rs. 300 crores in assistance.
 The Objective of NSDP is to provide adequate and satisfactory water supply sanitation, education facilities,
health care, housing and environmental improvements through the creation of sustainable support
systems.
 Through the scheme is “slum sensitive” and target funds to those states with the most pressing slum
clusters, but it is highly subsidized without much or any contribution from beneficiaries.
INTRODUCTION

4. Nature of the Scheme
National Slum Development Program is a centrally planned scheme.
Objectives of the Scheme
Up-gradation and improvement of Urban Slum through development of infrastructure and
housing activities like development or roads, drains, street light, drinking water
community latrine and bath etc.
Funding Pattern
Loan 70% and Grant 30%
Coverage
Applicable to all 103 ULBs of the State subject to submission of specified project
proposal accompanying with council resolution to repay the loan amount and interest in
time.
No. of Slums to be covered
Till now this scheme covered 2401 slums in India.

5. Sponsored by Central Government
Funding Pattern Funds will be allocated to States on the basis of urban slum population.
Ministry/Department Urban Affairs Department
Description
A yearly provision under this scheme shall be indicated by the Planning
Commission at the beginning of each financial year. Inter se allocations
between States shall be made on the basis of the slum populations of the
States. However, releases to States shall be made by the Department of
Expenditure only after the nodal Department reviews expenditure, the
physical progress of works and other performance criteria. The
Department of Expenditure shall release funds to the States on the basis
of recommendations of the nodal Department.
Beneficiaries Individual, Family, Community,
Eligibility criteria
The scheme should be applicable to all States and Union Territories
having urban population.
How to Avail Contact the respective Municipal Boards of the State.

6.  Provision of physical amenities like water supply, storm water drains, community bath, widening and paving of
existing lanes, sewers, community latrines, street lights etc.
 Community Infrastructure: Provision of community centres to be used for pre-school education, non-
formal education, adult education, recreational activities etc.
 Community Primary Health Care Centre Buildings can be provided (It is proposed that after creation of
infrastructure facilities the concerned municipalities will seek the support of Registered Medical
Practitioners/Government Doctors in the State/NGOs/CBOs/Philanthropic Associations to man these
centres.
 Social Amenities like Pre-school education, non-formal education, adult education, maternity, child
health and Primary health care including immunisation etc.

7.  Provision for shelter: The scheme must have a component of shelter upgradation or construction of new
houses (including EWS) as may be required. This is a necessity if genuine slum improvement is to be
done. Not less than 10% of the allocation to States under this assistance shall be utilized for construction
and/or upgradation of houses for the urban poor.
 States may work out State specific schemes for housing construction/upgradation under this component
subject to the proviso that the scheme shall not be an entirely subsidy based scheme but the funding
shall contain a loan component as well. The State scheme shall be first sanctioned in a state level project
Committee which shall be set up for this purpose by the state Government concerned and which shall
have one representative from the Department of UEPA, which is the nodal Department for this scheme
in the Govt. of India.
 The scheme must make adequate provision for achieving convergence between different sectoral and
departmental programs relating to achieving social sector goals similar to those envisaged in this
scheme.

8.  The one of the major drawback of NSDP is that it doesn't target illegal slums or non notified
slums in cities. The non notified slum settlements as per the nation sample survey
organization (N.S.S) 58th round report 2002 are 25000 as compared to notified slums which
are approximately 27000 settlements
 This means that in actuality, the NSDP program is targeting only 50% of the slum
settlements.
 Under this programs , until 2004 approximately Rs. 2475 corers has been released for the
development of slums.
 The investment did not correspond to slum population and varies per year in the nation.
 The investment seems to be on an ad-hoc basis that reflects lack of systematic approach for
any slum improvement.
DRAWBACKS OF NSDP

9.  Considering the 42.6 million slum population , it comes to an investment of approx.
RS. 580 per slum dweller for development purposes.
 This amount has been disbursed over eight years meaning RS 72 per slum dweller per
year has been invested for development purpose.
 The actual amount per dweller is much less and the funds also include administrative
and other expenditures.
 With Govt. limited financial resources such a low level of investment will not be able
to tackles of 42 million slum dwellers. Actually whatever efforts are made using the
Govt. limited resources to reduce the slum population or development slums is
nullified by the rapid growth of slum population.
DRAWBACKS OF NSDP

10. National Slum Development Programme (NSDP)
National Slum Development Programme (NSDP) is another central schemes launched in 1997-98. An amount of
Rs.685.36 lakhs was sanctioned up to 2004-05 and an amount of Rs.544.29 lakhs was released to the Municipal Boards.
Amount sanctioned by the Government (Rs. in lakhs)
Boards
1997-1998 1998-1999 1999-2000 2000-2001 2002-2003 2003-2004 2004-2005 Total
SMB 36.29 39.66 62.78 58.00 59.30 59.00 50.78 365.81
TMB 13.01 13.20 20.98 19.50 19.50 20.00 20.91 127.10
JMB 10.54 5.62 9.49 8.44 9.00 9.00 8.96 61.05
WMB 4.41 3.40 5.31 5.00 5.00 5.00 5.98 34.10
BMB 3.31 1.97 3.22 3.00 3.00 3.00 3.98 21.48
RMB 2.44 2.00 3.22 3.00 3.00 3.00 3.98 20.64
MUDA 0.00 0.00 5.00 5.00 5.20 5.00 4.98 45.82
Deptt. 0.00 30.00 0.00 0.00 0.00 0.00 0.00 30.00
TOTAL 70.00 95.85 110.00 101.94 104.00 104.00 99.57 685.36

11. Technical: NSDP is infrastructure oriented ,which leads to alienation of individuals and poor community
participation. The scheme has a spatial concept. but does not correctly identify the urban poor. Non-notified
that is illegal slums are not included and there is insufficient technical staffing. There is a need to develop an
accurate database for slums with agreed slum indicators and develop a fair policy for improvement and de-
notification of slums.
Managerial and institutional: There is limited technical, managerial and financial capacity and
too many schemes overburden urban local bodies. There is confusion between implementing ministries, and
a lack of effective monitoring. It is required to develop comprehensive micro macro slum plans at local levels
and improve governance and transparency of decision making. and establish effective inter-agency
coordination for all urban poor schemes.
CONSTRAINTS AND RECOMMENDATIONS

12. Financial:
Cost recovery as conceived is not happening, and there is inadequate financial
management and infrequent audits. The gaps in funding cause frustrations in
active urban local bodies, and allocations do not match requirements. There is a
need to introduce a concept of user charges for quality services and schemes for
cost recovery need to be an integral pan of project design. The loan/grant
component must be adjusted to the status of slums and in no case should there
be less than 30% contribution from, the worst slums or poorest dwellers.

13. Thank you
sumit ranjan
College of Architecture,
Bhaddal Institute,
Punjab
Email- ar.sumitranjan@gmail.com
FB- www.facebook.com/sumiran46.muz