SMART LIFE STYLE &

TRANSIT ORIENTED DEVELOPMENT

Ar Namrita Kalsi

Dy. Chief Architect, Delhi Metro Rail Corporation

connectkaro.org

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

connectkaro.org

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.

connectkaro.org #CK2015

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)

connectkaro.org #CK2015

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 “

connectkaro.org #CK2015 Ar Namrita Kalsi

Funding pattern under BOT model with PD (With central taxes and without land cost)

connectkaro.org #CK2015

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

connectkaro.org #CK2015

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.

Ar Namrita Kalsi

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

connectkaro.org #CK2015

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

Ar Namrita Kalsi

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.

connectkaro.org #CK2015

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.

Ar Namrita Kalsi

Haryana -Permissible Use TOD Zone

connectkaro.org #CK2015

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.

Ar Namrita Kalsi

NMA Restrictions

Height - 24 m

Basement -No

connectkaro.org

Operationalization & implementation Delhi -TOD Case Study-1

8, Jantar Mantar Delhi Outside LBZ- Residential National Monument

Ar Namrita Kalsi

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

Ar Namrita Kalsi

Zone M

Whole/ Part Thro’-DE

connectkaro.org #CK2015

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

Ar Namrita Kalsi

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

connectkaro.org #CK2015 Ar Namrita Kalsi

THANK YOU

connectkaro.org