He will also lay the foundation stone for 6,632 flats under the General Pool Residential Accommodation (GPRA) Redevelopment Plan across Sarojini Nagar, Netaji Nagar, Kasturba Nagar and Sriniwaspuri.

The Government of India is redeveloping seven ageing government housing colonies in Delhi through an innovative self-financing model that requires no funding from the public exchequer.

The project covers Sarojini Nagar, Netaji Nagar, Nauroji Nagar, Kasturba Nagar, Thyagraj Nagar, Sriniwaspuri and Mohammadpur, spread across about 537 acres.

Many of the existing residential quarters in these colonies had become old and structurally unsafe, with nearly 40 per cent declared uninhabitable. At the same time, the government faced a shortage of more than 20,000 homes for Central Government employees.

"The redevelopment will replace the old low-rise buildings with modern high-rise residential complexes, providing over 21,000 new flats along with upgraded infrastructure and public facilities," officials said.

They said the PM will tomorrow inaugurate 2,722 of the redone flats, besides laying the foundation stone for 6,632 flats across major colonies.

Officials said what made the project unique was its self-sustaining financial model. "Instead of using taxpayers' funds, the government has planned to develop and monetise a small portion of land which is about 69.41 acres, or 12.9 per cent of the total project area, for commercial and residential use," they explained.

The revenue from this limited land monetisation is expected to generate over Rs 35,100 crore, which will cover the estimated redevelopment cost of around Rs 32,800 crore.

"This means the entire project will be completed without burdening the government budget, while also having the potential to generate a surplus of more than Rs 2,300 crore for the government," sources said.