With the growth of cities all over the world urban areas are deteriorating. They are struggling with traffic problems, outworn buildings, new modes of living, and boundary problems like expansion. Therefore there is an immediate need to redress the complex of urban problems to arrest further urban decay, to reduce human sufferings and to renew & reshape the urban areas. Urban Renewal is the response to this urban decay. Various renewal policies and programmes have inevitably been bound with issues like housing standards, municipal laws, allocation of resources, economic conditions of the households. Urban renewal has suffered criticism for the insensitive relocation of the poor and powerless, non-involvement of citizens, lack of financial resources, shortage of personnel, multiplicity of agencies and lack of coordination between various executing agencies.