Public Private Partnership (PPP) is the most prominent urban housing policy that has emerged in the last decade in India. This paper investigates the potentialities of a PPP model for affordable housing to urban poor to achieve a balance between market forces and the needs of the low-income people. At the performance level, the joint sector brings together the efficiency in production, technical and marketing expertise of the private sector with the accountability and righteousness of the public sector. However, despite some reform attempts at the operational level, major bottlenecks are identified including antiquated legislation, besides high municipal taxes, stamp duties, land acquisition and incentives. Housing production under the PPP model to date is minuscule in terms of numbers. From the study it is identified that the potentialities of a PPP model for the slum housing project lies between moderate to high risk. Affordability, Policy, Incentives and Documentation are the top risk factors from developers, Government, NGO's and financial institutions' point of view. AHP-Fuzzy model was used to determine the criticality of risk factors. Empirical relations were derived to identify the weightage of each risk and for the successful implementation of PPP, on slum housing project, mitigation strategies can be applied on the top risk factors. However, given the huge housing stock deficiency, high proportion of low-income groups in the city and the slow pace of regulatory reforms, it is argued that future success is contingent upon the inclusion of low-income communities, which comprise a major portion of the population.