The objective of the Scheme is to convert/ construct low cost sanitation units comprising of two pit pour flush latrines with superstructures and appropriate variations to suit local conditions. It also plans to construct new latrines where the EWS households (Economically Weaker Section) do not have latrines and hence defecate in the open. The scheme aims to improve overall sanitation in the towns.

The centre provides a subsidy of 75 percent and the state 15 percent while the beneficiary has to bear the remaining 10 percent. The second installment of center’s share will only be released after the State share for the first installment is released. The fund is released by Central Government directly to State Urban Development Agency (SUDA), District Urban Development Agency (DUDA) or other designated agency. The services of the NGOs and community extension units of the municipalities selected for Urban Basic Services programme could also be utilized for motivating the community and for technical help.

Proposals can be submitted by the urban local body or Housing Board, Slum Clearance Board, Development Authority, Improvement Trust, Water Supply and Sewerage Board, Cantonment Board, etc. duly authorized by the State Government for undertaking the programme. The States will select NGOs with adequate experience to conduct survey for identification of beneficiaries, issue biometric photo Identity Cards, look after operation and maintenance of the units, organise training / seminars, and prepare project reports.