Social Issues4 Nov 2026 · about 5 min

New Slum Rehab policy: Delhi govt lays out plan for redeveloping 17 slum clusters

The brief

The Delhi Slum and Jhuggi Jhopri Rehabilitation and Relocation Policy, 2026, sets out a new way to rebuild slum settlements. It uses public-private partnerships and aims to provide rehabilitation housing while making redevelopment financially workable. Its in-situ approach focuses on rebuilding settlements at their existing locations. Under the plan, private developers will construct housing for eligible slum residents. In return, they will receive development rights over commercially valuable parts of the land. The projects can also include mixed-use development, helping combine housing with commercial space and other planned facilities. The first phase covers 17 settlements in Seelampur, Sultanpuri and Lajpat Nagar. Together, they contain 4,870 shanties, which are planned to become three high-rise residential colonies. Feasibility studies will come first, followed by project planning and developer selection.

What is the Delhi government's new slum rehabilitation policy, and what does “in-situ redevelopment” mean?

Under the plan, private developers will construct housing for eligible slum residents. In return, they will receive development rights over commercially valuable parts of the land. The projects can also include mixed-use development, helping combine housing with commercial space and other planned facilities.

The first phase covers 17 settlements in Seelampur, Sultanpuri and Lajpat Nagar. Together, they contain 4,870 shanties, which are planned to become three high-rise residential colonies. Feasibility studies will come first, followed by project planning and developer selection.

How many slum settlements and shanties are included in the first redevelopment plan, and where are they located?

The redevelopment plan covers 17 slum settlements across three Delhi regions: Seelampur, Sultanpuri and Lajpat Nagar. Altogether, these settlements contain 4,870 shanties. The government plans to consolidate them into three high-rise residential colonies.

The distribution is uneven. Four settlements in Seelampur contain 1,243 jhuggies. Nine settlements in Sultanpuri contain 1,997 jhuggies. The remaining four clusters in the Lajpat Nagar region contain 1,630 jhuggies, including settlements near Jal Vihar, Jeewan Nagar and Ashram.

Examples show the range of sites involved. Brahmpuri Road in New Seelampur has 305 shanties across 24,900 square metres. Jal Vihar has 526 shanties across 9,700 square metres. The Sultanpuri Labour Colony has 255 shanties across 9,551 square metres.

How will the Public-Private Partnership model work—what will private developers provide, and what will they receive in return?

The PPP model divides the redevelopment responsibility between the government and private developers. The government identifies sites, plans the process and sets the rehabilitation framework. Private developers provide the construction work needed to create homes for eligible residents of the slum settlements.

The developers receive development rights over commercially valuable portions of the land in return. Those rights can support commercial or mixed-use construction, helping generate value from the project. The policy therefore links social housing with development opportunities instead of treating rehabilitation as a purely public expense.

The model is a major change from Delhi’s 2015 policy, when the government remained the principal implementing agency. For the new projects, DUSIB will first commission feasibility studies. It will then use planning and transaction processes to help select developers for the three locations.

What happens to eligible slum residents and the surrounding land when several settlements are consolidated into high-rise residential colonies?

Consolidation brings several separate Jhuggi Jhopri settlements into one planned residential project. Instead of maintaining scattered shanties, the government proposes three integrated high-rise colonies in Seelampur, Sultanpuri and Lajpat Nagar. Eligible residents are meant to receive rehabilitation homes within these redevelopment projects.

The land is then planned as a larger development site. Private builders construct the rehabilitation housing and can receive development rights over commercially valuable portions. The policy also supports mixed-use development, so project plans can account for commercial space alongside housing, parking and other amenities.

The immediate plan covers 4,870 shanties across 17 settlements. The final designs are not yet settled. Feasibility studies must establish land areas, permissible FAR, ground coverage, built-up areas, flats, floors, parking and amenities before detailed implementation proceeds.

Which government body is responsible for planning the projects, and what role will feasibility studies and transaction advisors play?

The Delhi Urban Shelter Improvement Board, or DUSIB, is responsible for moving the projects forward. Its first task is to engage a private agency for feasibility studies covering the three redevelopment sites. These studies will test whether the proposed projects can work technically and financially.

The agency must prepare conceptual plans for high-rise residential buildings. The plans will include estimated construction costs, land area, permissible FAR, ground coverage, built-up area, flats, floors, parking and other amenities. These details provide the basis for comparing project possibilities.

The government has also invited bids to appoint transaction advisors. Their role is connected to selecting developers for in-situ rehabilitation of the JJ clusters. The feasibility work is expected to take four months. Further project planning will begin after those studies are completed.

How is this policy different from Delhi's 2015 approach, and what earlier PPP projects—such as Kathputli and Kalkaji—provide precedents?

Delhi’s new policy differs mainly in who drives implementation. The 2015 policy kept the government as the principal implementing agency. The 2026 policy instead uses a PPP model, inviting private developers to build rehabilitation housing and participate in financially viable mixed-use redevelopment.

Delhi already has precedents for this approach. Kathputli was the first JJ cluster redeveloped into a high-rise residential colony through a PPP. In Kalkaji, Bhumihin Camp and Navjeevan Camp were integrated into a residential complex. Ashok Vihar also combined multiple settlements into a residential colony.

The proposed Seelampur, Sultanpuri and Lajpat Nagar projects follow that consolidation model. They aim to turn groups of JJ settlements into three integrated high-rise colonies. DUSIB is now arranging feasibility studies and developer-selection processes before construction decisions move ahead.

What are Floor Area Ratio, ground coverage and mixed-use development, and how do they help make urban redevelopment financially viable?

Floor Area Ratio, or FAR, is the relationship between a plot’s total built floor area and the size of that plot. Ground coverage is the portion of the site covered by a building at ground level. These controls shape how much can be built and how much land remains open for access, parking or amenities.

Mixed-use development combines different uses, such as residential and commercial space, within a planned project. In this policy, private developers build rehabilitation housing while receiving rights over commercially valuable land portions. Commercial development can help create value that supports the housing component.

The feasibility studies will calculate permissible FAR, ground coverage and built-up area for each site. They will also estimate costs, flats, floors, parking and amenities. These figures will show whether three high-rise colonies can support rehabilitation needs while attracting private participation.

This brief was written by AI from the original reporting and checked by other models. Names, figures and quotes come from the source; read it for full context.