The plan would be out in August, Secretary to Municipal Administration and Urban Development Ministry, Pushpa Subrahmanyam said.

Data is being collected from all the municipalities in the State and inputs for the plan would be finalised soon, she said.

``President Pratibha Patil in her address to the Lok Sabha said that the UPA Government would take up a programme called - Slum-Free India by 2014.

The Central Government has been working on this programme and the details would be announced soon,’’ the MA&UD secretary informed.

Chief Minister YS Rajasekhara Reddy also announced three months back that he want to see a slum-free State by 2014. The Central Government’s announcement came in handy for him and the State Government is now waiting for the modalities of the Slum-Free India programme, she said.

According to MA&UD officials there are about 7,700 slums in the 124 municipalities of the State. About two crore people are living in them with no basic facilities.Most of the slums lack drinking water, roads, sanitation and more than ten people live in about a 50-square yard `house’.

The Central Government has already been implementing an urban poor housing programme under Jawaharlal Nehru National Urban Renewal Mission and another scheme Rajiv Awas Yojana is also on the anvil, the officials said.

The government has already issued orders seeking maintenance of a separate account, `UPA Account’, for these funds which should be used to provide basic amenities, create income-generating opportunities and improve the overall living standards of the urban poor.

Explaining the procedure to estimate the amount of funds to be earmarked for the UPA Account, the government asked the urban local bodies (ULBs) to prepare an estimate of their own revenues to be realised through tax resources, non-tax resources, assigned revenues, non-plan grants, etc for the subsequent financial year.

They have to prepare an estimate of the amount required for maintenance of all civic services including outsourcing of services, office and contingent expenditure and deduct this from total own resources and arrive at the own resources. The pay and allowances and pensions of municipal employees are, however, not included in this calculation.

After ascertaining the amount available for undertaking developmental activities 40 percent of it should be kept in the UPA Account.

These funds should be used for water supply, drainage and sewage, construction of community toilets, solid waste management, roads, streetlighting, parks, community and livelihood centres and to meet cost escalation, if any, in housing and infrastructure schemes and other sanctioned and ongoing projects meant for slums.

In case where UPA funds are not utilised in a particular year, they shall be carried forward to the subsequent year.

The commissioners of all ULBs, except GHMC, shall submit a quarterly progress report to Commissioner and Director of Municipal Administration who forwards it to the government.