Indian states are expressing reluctance to comply with the mandatory provisions for availing central funds under the scheme. This is due to the scheme mandatory provisions such as according property rights to slum dwellers and earmarking 25% of the municipal budget for spending in colonies and slums where the urban poor live. This reluctance has now forced the Housing and Urban Poverty Alleviation ministry, which is implementing RAY, to reconsider the policy provisions so as to make it more acceptable to the states.
