Delhi Approves New Policy for Slum Redevelopment via Public-Private Partnerships

Delhi's latest slum rehabilitation and resettlement framework could reshape not only the lives of lakhs of residents living in informal settlements but also the capital's urban development model. The newly approved Delhi Slum and JJ Cluster Rehabilitation and Relocation Policy, 2026 seeks to move away from piecemeal rehabilitation towards a large-scale redevelopment approach based on public-private partnerships (PPP). The policy aims to provide permanent housing to eligible residents while unlocking land value to finance redevelopment. For a city grappling with rising housing demand, land scarcity and decades of unplanned urbanisation, the initiative could become one of the largest urban renewal exercises undertaken in the national capital. Approved at a high-level meeting chaired by Union home minister Amit Shah on June 16, the policy seeks to provide permanent housing and civic infrastructure to an estimated four lakh families living in JJ (Jhuggi-Jhopri) clusters across the city. "In the meeting, Union Home Minister Amit Shah said Delhi Slum and JJ Cluster Rehabilitation and Relocation Policy, 2026, has been finalised today and the Government of Delhi should notify it at the earliest," an official statement said.

Why the policy matters

Delhi's JJ clusters are home to a large section of the city's workforce, including domestic workers, drivers, vendors, construction labourers and other service-sector employees. According to DUSIB, Delhi has 675 recognised JJ clusters, although officials estimate the actual number could be closer to 750 after accounting for settlements that emerged after 2015. Urban planners have long linked the growth of these settlements to the shortage of affordable housing near employment hubs. The new policy seeks to address that gap through planned redevelopment and rehabilitation rather than continued expansion of informal settlements.

PPP model at the centre of redevelopment

The policy relies heavily on a public-private partnership (PPP) model. Under the framework, developers will construct multi-storey housing projects for eligible slum residents. Part of the land will be commercially developed, helping fund the cost of rehabilitation. The Delhi government plans to issue tenders for at least five PPP-based rehabilitation projects every month. Amit Shah directed the Delhi Development Authority (DDA) and Delhi Urban Shelter Improvement Board (DUSIB) to issue tenders for five JJ clusters within 45 days and prepare project documents and tender forms for an additional 50 clusters. Officials said rehabilitation projects are likely to begin in clusters located in Mayur Vihar, Seelampur, Pitampura, Sultanpuri and Lajpat Nagar.

'Jahan Jhuggi Wahi Makan'

A key objective of the policy is to ensure that rehabilitation remains linked to existing communities and employment centres. Chief minister Rekha Gupta said the central and Delhi governments were working together to provide "Jahan Jhuggi Wahi Makan" (houses where jhuggis are). "In Phase I, DDA and DUSIB will initiate the tender process for five JJ clusters within the next 45 days. Delhi government will also issue tenders for a minimum of five PPP-based rehabilitation projects every month. These new colonies will be equipped with basic facilities such as schools, health centres, playgrounds and anganwadi centres," she said.

Focus on civic infrastructure

Unlike earlier housing interventions that primarily focused on dwelling units, the new policy places significant emphasis on social infrastructure. Home minister Amit Shah directed officials to ensure adequate provisions for community facilities including anganwadi centres, educational institutions, health centres and playgrounds in rehabilitation colonies. The approach reflects a broader shift in urban redevelopment policy from simply constructing houses to creating integrated neighbourhoods.

Eligibility expanded by a decade

One of the most significant changes under the policy is the extension of the eligibility cut-off date. The eligibility date for allotment of permanent housing has been moved from January 1, 2015 under the existing policy to January 1, 2025. The move is expected to substantially increase the number of beneficiaries and bring a larger section of slum residents within the rehabilitation net. Shah also directed that the eligibility cut-off date for JJ clusters should be fixed as January 1, 2025.

What it means for Delhi's housing market

The policy could have implications beyond rehabilitation. Large-scale redevelopment of JJ clusters could unlock strategically located land parcels across the city, improve urban infrastructure and increase formal housing stock in areas close to economic centres. For developers, the PPP structure offers access to land in built-up urban locations where fresh acquisition opportunities are limited. For the government, the model seeks to balance social housing objectives with financial viability by allowing commercial development to cross-subsidise rehabilitation costs. "All slum-dwellers will get pucca houses. Gen-Zs will have a better future when the living conditions of their family are improved," Delhi urban development minister Ashish Sood told TOI. With plans being prepared for the phased rehabilitation of at least 50 additional JJ clusters, the success of the policy will ultimately depend on execution, financing and the ability to deliver both housing and supporting infrastructure at scale.