New Delhi (Agencies): Aiming at making cities slum-free and development of slum-dwellers across the country, the Centre will soon announce Rs 6,000 crore grant for construction of over two lakh houses under the Rajiv Awas Yojna as a pilot project.

The pilot project envisions setting up of over two lakh housing units with all basic infrastructures across the country. Each unit, calculated to cost about Rs 3 lakh, will consist of two rooms, kitchen, bathroom and a lavatory, along with electricity and water facilities.

"The Rs 6,000 crore grant for construction of houses with all basic amenities will be announced after the cabinet approval shortly," a senior Housing and Urban Poverty Alleviation (HUPA) Ministry official said.

"It took almost two years to prepare the scheme after the announcement of the Rajiv Awas Yojna. Now the implementation stage has come," the official stated.

There is a scarcity of 25 million housing units in the country and the government looks to build about 10 million houses under the RAY. GIS mapping has been done to identify slums in cities.

"The sanction of Rs 6,000 crore for RAY is being announced in the last year of 11th Five Year Plan. More grant would follow in the 12th Five Year Plan," the official added.

According to the scheme, 50 per cent of the cost of construction would be borne by the Centre and the rest would be borne by the state government, the urban local body and the beneficiary.

"We have prepared a model Properties Rights Act and it would be given to all states to adopt it. The legislation will facilitate the slum dwellers to avail loans from bank," he announced.

The grant under the Rajiv Awas Yojna will be given in four installments after receiving the detailed project reports from the state governments. Besides the state government, urban local bodies and NGOs will be involved in implementations of the scheme.