connectkaro 2015 - session 4a - smart lifestyle and transit oriented development
TRANSCRIPT
SMART LIFE STYLE &
TRANSIT ORIENTED DEVELOPMENT
Ar Namrita Kalsi
Dy. Chief Architect, Delhi Metro Rail Corporation
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Index
Q. What are the Mechanisms or tools for land consolidation and financing of TOD
projects around metro stations? How successful have these been thus far, and what changes are foreseen to
improve their success? How do you propose to bring in the Private sector as partner in realizing
Transit Oriented Developments (TOD)? Does the "Smart City" approach move this forward?
1 MRTS-Financing Trend
2 Financing model- NOIDA -Greater NOIDA Corridor
3 Planning Instruments to optimise land utilisation
4 Transit Oriented Development- Haryana
5 Operationalization of TOD Delhi –Teething issues thro case studies
6 Conclusion
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Introduction MRTS are high capacity Mass Rapid Transit Systems.
AMENABLE TO
Transit Oriented Development (TOD) &
Densification thro’ additional FAR
To maximize people & users to live within walking distance of MRTS stations
At max. 10 min walking distance
For sustainability & Reduce travel demand
IN EVITABE TRUTH
T-1 Enhances property prices (sale & rental)
T-2 Government Invests while Private sector benefits
T-3 In the catchment areas of MRTS
Ensure densification
Thro’ population density
Thro ‘ higher FAR &
En-cash the increased property value
Part finance the capital cost & OPEX
Fund other urban transport projects.
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Metro Rail Projects Public Sector Mode than
BOT/PPP
FINANCING TREND
Thro’ budgetary support of Central Govt. & State Govt.
Loans from multilateral/ financial institutions.
The budget resources are limited Cannot be concentrated in few cities. A need to identify innovative
financing mechanism MoUD is urging State Govts.:
Create dedicated Urban Transport Funds & Finance & implement MRTS Thro’ Urban Metropolitan Transport
Authorities
Ar Namrita Kalsi
FINANCIAL INTERNAL RATE OF RETURN
(FIRR) • FIRR 8.64 %
• With central taxes only
• With PD income from 50 Ha. of Land
• The FIRR without PD is 3.98.
• The line is viable only with Property
Development
ORGANISATION SETUP
Special Purpose Vehicle under State Govt.
Control for example :
Delhi Metro Rail Corporation (DMRC)
Bangalore Metro Rail Corporation (BMRC)
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Source of Fund With Taxes & Duties
Amount (Rs/Crore)
% Of contribution
Grant By GOI 741.50 14.28%
Grant By UP Government 741.50 14.28%
SD for CT by UP Government (50%) 297.50 5.73%
SD for CT by GOI (50%) 297.50 5.73%
Grant By Noida Authority 1000.00 19.25%
Contribution from Noida-Greater Noida 2116.00 40.73%
Total 5194.00 100.00%
Land free by Noida/Greater Noida Authority 339.00
Grand Total 5533.00
FUNDING PATTERN UNDER SPV MODEL (WITH CENTRAL TAXES)
State Govt. wish list for sole control of NMRC Therefore Grant is preferable than equity Noida-Greater Noida Authority to reimburse or
exempt Rs.321.00 cr. of State Taxes of completion cost
50 Hectare Land free of cost to SPV for getting FIRR greater than 8%
“Noida Metro Rail Corporation Ltd.” An SPV Standalone corridor Grant enhanced from Rs. 500 cr. to 1000 cr. Balance amount by Noida-Greater Noida
Authorities out of own sources (Not Loan) GOI & UP Govt. requested to change equity
to grant Ar Namrita Kalsi
Case Study
Noida & Greater Noida- Metro corridors
Case Study
Noida & Greater Noida- Metro corridors
Uttar Pradesh Govt. Approved (on 27.3.15)
Increase in the floor area ratio (FAR) by 0.5 From existing FAR of 2.75 to 3.25
Mixed land use in residential and commercial sectors
Different slab for sports city & govt. usage
TOD ZONE: Within 500m radius of existing Delhi Metro
corridor & Upcoming Metro line from Noida to Greater Noida. Purchasable FAR on existing formula on 24 m road Not permitted on Res. Plotted Development
“ Proceeds to the tune of Rs. 3,500-4000 cr. expected “
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Funding pattern under BOT model with PD (With central taxes and without land cost)
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Particulars Amount (Rs/Crore)
% of contribution
VGF by GOI 1039.00 20.00%
VGF by GO-UP 2791.00 53.74%
Equity by Concessionaire 455.00 8.76%
Concessionaire’s debt @12% PA 909.00 17.50%
Total 5194.00 100.00%
Land Free by GO-UP 339.00
IDC 32.00
Total including IDC 5565.00
BOT MODEL : Private firm to : Finance, design, build, operate & maintenance. Govt. of UP contribution limited to cost of land . Project eligible for Viability Gap Funding (VGF) upto 20%
from GOI. State government to contribute same or more amount. Being a social project, private parties are not ready to bid . Private operator may demand assured rate of return of 16%
to 18% or a comfort of guaranteed ridership. The funding pattern assumed under this model for assuring
16% EIRR excluding the cost of land is tabulated above
PPP MODEL Variant 1:- Govt. funds the fixed infrastructure
cost such as land and basic civil structures and private investor funds all the systems such as rolling stock, signalling, power supply, traction, track, fare collection system and E&M works including station architectural design. Example Airport Line
Govt. investment will be about 40 to 45% of the total cost and the PPP Operator funds the remaining cost thro’ viability gap funding . All the Revenues will accrue to the Operator in all the concession period till the project is handed over to the owner.
Variant 2:- Govt. acquires the required land and offers to the concessionaire free of cost. The private partner funds all the rest of the project, operates and maintains the system taking all the revenues and risks. His expected losses are made good through a viability Gap Funding (VGF). At the end of concession period the system reverts to the owner. Under the PPP model, Sweeteners are sometime offered to the operator in the form of lands for commercial exploitation.
Ar Namrita Kalsi
Other Financial models BOT or PPP model the total cost of the
project generally gets hiked
Mechanisms/tools for
land consolidation &
financing TOD
projects
PLANNIG INTRUMENTS FOR OPTIMISATION OF LAND: TP Scheme : (Gujarat) There is no land transfer only shrunk by 30% for net
public land transfer to the government. It is likely more immeasurably fairer
(Pandey, 2007).
‘Implicit’ Acquisition in Road Widening (Kerala) the project is viable since
the cost of road is limited to the construction cost while the otherwise
high cost of acquiring the land adjacent to a road for commercial
development is avoided thro land shrinkage(Pandey, 2007).
Use of TDRs (Mumbai) those giving up lands are automatically
compensated, to eliminate value loss in giving up land , through coupons
bought by developers as TDR,
Land sharing projects instead of being evicted, the slum dwellers share the
area with planned commercial properties. (Sandhu, 2004; Shlomo and
Thipparat, 1983).
Land pooling (Punjab, Gujarat, Haryana, UP Delhi DDA)
Efficient, sustainable &equitable land development
Where lands of different owners is pooled together and
After planning is re-distributed in a properly reconstituted plots
Deducting the land for open spaces, social infrastructure, services,
housing for the weaker section and street network.
Compulsorily acquiring land is avoided
Yet a control on the growth and development can be exercised.
Redevelopment of planned & unplanned areas & Conversion
Punjab in 2013 formulated two policies: Developed Residential Land and Commercial land to land owners under Land Pooling Scheme and Land owners become partners in development
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Land Acquisition or Assembly Methods In view of new LA legislation &
Real estate regulatory bill , call of the day for enabling projects is
Formulation of new or old, innovative, hybrid formats in refreshed models.
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Private sector as partner in TOD &
Role of "Smart City"
Innovative Format
Land owner
Developer
Government
End user
&
Technology Provider
All come together to enable Smart projects
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Stakeholders’ Preferences for Land Assembly: Development with Rural Urban Synergy, NAMRITA KALSI1 and RAVI KIRAN2
Indian Journal of Agricultural Sciences 85 (4): 00–00, April 2015/Article at
http://epubs.icar.org.in/ejournal/index.php/IJAgS/issue/archive
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Haryana-TOD
Reduce/discourage private vehicle dependency and induce public
transport use through design, policy measures and enforcement.
Provide easy public transport to max. people within walking
distance through densification and enhanced connectivity.
Enable city restructuring & optimum utilisation of land along
transport corridors.
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METRO CORRIDORS HARYANA
Sept 2013
1. Gurgaon- Mehrauli to Sector -29 City Centre, Gurgaon.
2. Badarpur ,Delhi to Ballabgarh, Dist. Faridabad.
3. Mundka, Delhi to City Park, Bahadurgah.
4. Rapid Metro in PPP mode by HUDA.
In accordance with Develop. Plan of Gurgaon-
Manesar Urban Complex.
5. Northern Periphery Road
6. Southern Periphery Road
DEFINITION OF TRANSIT ORIENTED DEVELOPMENT(TOD)
macro or micro development around a transit node that
facilitates ease of access to transit facility induce people to prefer to walk &
use public transportation over personal transport. The Primary goals of TOD are to:
TOD Zone: 500 m. wide belt on both boundaries of road ROW of
MRTS corridor is designated as TOD Zone.
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Haryana -Permissible Use TOD Zone
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PERMISSIBLE USES Multi-storeyed group
housing Integrated commercial
complexes
Integrated Office Spaces
Integrated Industrial townships
Banquet halls/community buildings/schools
To be designated in the notified Development Plans
NON-PERMISSIBLE USES Car-sales showrooms Automobile-repair/
services/ vehicular servicing shops,
Bus Depot, LPG godowns, Cremation
ground
Electric Sub-station above 32KV,
Trade with obnoxious, hazardous,
inflammable, non-compatible and
polluting substance or process .
Prohibited outside metro stations: Stand-alone Multi Level Parking
Stand–alone Open parking lot
Option to convert these uses into
permissible uses.
HIGHER FAR OF 3.0 GROUND COV. 40% DENSITY 625 PP/ACRE In-principle approval to Property development on transport corridors on 17.9. 2013.
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NMA Restrictions
Height - 24 m
Basement -No
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Operationalization & implementation Delhi -TOD Case Study-1
8, Jantar Mantar Delhi Outside LBZ- Residential National Monument
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DMRC to construct Sub-Leased to -DE
Operationalization & implementation Delhi -TOD Case Study-2
MAIN ROHTAK ROAD EXISTING METRO LINE
M M M
Mundka Rajdhani Park Nangloi
RLY.
RLY.
Mundka
Nangloi
12
Manufacturing (Light & Service Industry)
MUDKA Delhi, Industrial Area Zone M
DDA LAND POOLING
Zone N
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Zone M
Whole/ Part Thro’-DE
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Operationalization & implementation Delhi -TOD Case Study-3
Janakpuri (W) Delhi Residential Area
Influence Zone layout plan : Compulsory for individual developments with TOD norms Projects size of < 50 Ha permissible for development/ infill or
redevelopment, Compliance with influence zone plan prepared by the
Planning Authority compulsory
Minimum Mixed-Use Criteria ~ Norms At least 30% -Residential , 10% Commercial & 10% Facility
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50% -predominant land use
FAR - 4:0 Ground Cov. - 40% ECS - 1.33 EWS - 15% Density - 2000 PPH
Govt. Lot Size - 1 ha/3000 sqm
DMRC to construct Sub-Leased to -PSU
Conclusion
TOD- SMART KARO
The target population in TOD zones are young working people .
These are smart people with smart phone centric life's.
They will take informed decision to live in TOD Zones
Therefore we requite to SMART UP the proposals:
Smart Governance -CEO driven
Hassel free smart Registry & possession
Universal Accessibility from work to home thro ‘one card
One bill of all services thro e-payment gateways
365x24 availability of water, energy , web, services
At affordable cost so Recycle & Reuse must
Monitoring Services, O& M through sensors is critical
NOT ONLY CITY BUT SMART LIFESTYLE
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