New Delhi, Dec. 3 : Prime Minister, Manmohan Singh, said on Thursday that the government plans to launch the Rajiv Awas Yojana for constructing houses for city slum-dwellers.

"We hope to launch the ambitious Rajiv Gandhi Awas Yojna that will strive to create a formal space for the slum-dwellers within the city and transform and redevelop our cities to make them slum-free," the Prime Minister said at the fourth Anniversary of Jawaharlal Nehru Urban Renewal Mission Scheme.

The Prime Minister stressed the need to improve the financial health of the urban bodies to improve the city life.

"Improving the financial health of our municipalities is a priority. The states should fulfil their obligation to devolve functions and finances to municipal bodies. State Finance Commissions have to be set up periodically and their recommendations implemented in both letter and spirit. Urban bodies, on their part, should review and rationalise their taxation structure and augment their resources," said the Prime Minister.

The government has allocated funds for bus transport, water supply, sewerage, drainage, and improvement of slums and construction of houses for the poor.

In the next 20 years, the urban population of India is likely to double. (ANI)