New Delhi: The Delhi Development Authority (DDA) has initiated the process to rehabilitate more than one lakh people living in 45 slum clusters across the national capital. The move marks one of the first major steps towards implementing the housing and redevelopment vision under the Master Plan for Delhi 2047.
The DDA has invited proposals to appoint three transaction advisors who will prepare feasibility reports for 15 rehabilitation projects covering approximately 21,229 households spread across 135.74 acres. These reports will assess the housing requirements, infrastructure needs, financial viability and development potential of the selected clusters before the projects move towards implementation.
The clusters in Badli, Shahdara, Pitampura and Tilak Nagar account for some of the largest groups of households being considered for rehabilitation.
The initiative comes after Union Home Minister Amit Shah reviewed slum rehabilitation in Delhi and directed the DDA and the Delhi Urban Shelter Improvement Board (DUSIB) to accelerate the process. However, the current step involves project assessment and planning; it does not mean that construction or relocation has begun across all 45 clusters.
DDA Takes First Step Towards 45 Slum Rehabilitation Projects
The DDA’s request for proposals (RFPs) seeks three transaction advisors to examine the feasibility of 15 projects covering the 45 identified slum clusters.
Their work will help determine how each project can move forward, considering the conditions of the land, existing infrastructure, development potential and funding requirements. The advisors will also recommend suitable implementation models for systematic and sustainable rehabilitation.
This assessment is important because slum clusters differ in size, location and land ownership. A single approach may not work equally well across all sites, particularly where land parcels are small or face infrastructure and legal constraints.
The findings will help the DDA assess which redevelopment models are practical and how private developers could participate in the projects.
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Amit Shah’s Push to Accelerate Slum Rehabilitation
The latest move follows a review meeting chaired by Union Home Minister Amit Shah more than three months ago. He directed the DDA and DUSIB to issue tenders for five slum clusters within 45 days and to float tenders for at least five public-private partnership (PPP)-based rehabilitation projects every month.
The directions sought to speed up a process that has moved slowly over the past decade. The DDA’s latest action signals progress in preparing a larger pipeline of projects, although the feasibility stage must still be followed by further approvals and implementation.
Delhi has approximately 675 slum clusters, according to government figures. Around half stand on land owned by central government agencies, including the Railways, the Land and Development Office (L&DO) and the DDA. The DDA serves as the nodal agency for rehabilitation on these sites.
The remaining clusters occupy land owned by the Delhi government. DUSIB, which functions under the Delhi government’s Urban Development Department, handles rehabilitation for these areas.
This division of responsibility makes coordination between agencies essential to move projects forward.
Why Slum Rehabilitation Has Been Slow
Despite repeated efforts, Delhi has completed only two in-situ slum rehabilitation projects over the past decade. The DDA developed both projects, at Ashok Vihar and Kalkaji, together providing around 4,700 flats.
In-situ rehabilitation generally allows eligible residents to receive housing at or near their existing settlement rather than requiring them to move to a distant location. It can help families retain access to workplaces, schools, transport and local support networks.
However, the DDA has struggled to attract private developers under the PPP model. Developers have cited small land parcels, difficult locations near drains and railway tracks, and frequent litigation as key obstacles.
These challenges can make redevelopment costly or financially unviable. The feasibility reports for the newly identified clusters will therefore play an important role in determining whether projects can attract investment and proceed successfully.
How the Public-Private Partnership Model Works
Under the PPP-based rehabilitation model, private developers construct homes for eligible slum residents on part of the land. They can then commercially develop the remaining portion, known as the ‘free-sale’ component.
The model aims to help developers recover the cost of rehabilitation housing through the sale of permitted residential or commercial space. It reduces the need to fund the entire project through direct public expenditure.
The approach is based on the assumption that the commercial value of land in many parts of Delhi can support the cost of building rehabilitation homes. However, its success depends on the location, size and development potential of each site.
The DDA’s difficulty in attracting developers has prompted changes to the city’s planning and rehabilitation framework.
Delhi Changes Slum Policy and Master Plan 2047
Recent amendments to Delhi’s slum policy have changed the framework for rehabilitation, making slum dwellers eligible to receive flats in place of their existing homes, subject to the applicable rules.
Changes to the Master Plan for Delhi 2047 also seek to improve the commercial viability of rehabilitation projects. Developers can now build taller buildings on slum land parcels and sell a larger proportion of the developed area for profit.
These changes aim to make redevelopment more attractive to private investors while creating housing for eligible residents.
The new framework also introduces Transferable Development Rights (TDR), a mechanism that allows developers to use or transfer unused development rights.
How Transferable Development Rights Could Help
Under the TDR mechanism, a developer may not be able to use all the development rights available on a particular site because of its size, location or height restrictions. These unused rights can be used on another eligible plot or sold to another developer under the applicable rules.
For example, a small slum land parcel may not have enough space to accommodate the full development potential allowed under planning regulations. TDR could allow the developer to transfer the unused potential elsewhere, improving the project’s financial viability.
Mumbai has used TDR extensively, including in slum rehabilitation and redevelopment. Delhi’s adoption of the mechanism is intended to address some of the commercial barriers that have discouraged developers from participating in these projects.
However, the actual impact will depend on how the new rules work in practice and whether they encourage more projects to reach the construction stage.
What the Plan Means for Delhi’s Slum Residents
The rehabilitation initiative could eventually improve housing conditions for thousands of families. Better-planned housing can provide more secure living spaces and improve access to basic services and infrastructure.
For residents, the most important questions will concern eligibility, the timing of rehabilitation, the location and quality of replacement homes, and continuity of access to jobs, schools and public transport.
The current RFP process does not establish a relocation schedule for all 45 clusters. The feasibility reports and subsequent project decisions will determine the next steps.
Delhi’s challenge is not only to redevelop land but also to ensure that eligible families receive suitable housing and that redevelopment projects remain financially and practically viable.
A Major Test for Delhi’s Housing Redevelopment Plans
The DDA’s move to assess 15 projects across 45 slum clusters marks an important step in Delhi’s long-term housing plans. The initiative brings together project feasibility, changes to development rules and greater reliance on private investment.
The success of the programme will depend on whether the authorities can overcome land-related challenges, attract developers and move beyond planning towards timely delivery of homes.
If implemented effectively, the rehabilitation drive could improve living conditions for more than one lakh people while reshaping how Delhi approaches urban redevelopment under Master Plan 2047.
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