Andhra Pradesh, Karnataka, and Tamil Nadu are among the states where the urban poor population will grow the most — over the past years the annual growth of urban poor in these states has been over 30 per cent.

The dimensions of the problem are immense: to provide basic amenities to even the existing 190 million would require at least 40 million low-cost dwelling units and 500 health and family welfare centres. This when the cost of urban homes for the middle class is Rs 30 lakh to Rs 40 lakh.

In its paper ‘Housing & Health Facilities for the Urban Poor’, Assocham says housing units could be built for Rs 1.5 lakh each, provided state governments allot free land and fully subsidise the endeavour.

Assocham president Venugopal N. Dhoot said all states — especially Maharashtra, Punjab, Uttar Pradesh and West Bengal, which receive migrant workers from across the country — should emulate the Delhi government’s recent initiative providing housing for nearly 4 lakh slum-dwellers in and around the city.

He said a minimum budgetary allocation of Rs 500 crore in fiscal 2008-09 would be required for building some 500 health & family welfare centres in cities. However, the government’s priorities seem to lie elsewhere: in 2006-07 the government had allocated only Rs 80 crore for such centres.