36.Conclusion And Recommnendations

CONCLUSION AND RECOMMNENDATIONS

In broad terms, the Program’s interventions aim at the revitalization of abandoned structures, improvement of green spaces and provision of infrastructure along the stretch of the ring road of Silvassa.

We explored the viability of using value capture to finance these types of projects. To this end, we developed the case study that examines the financial prefeasibility of value capture and identified the most appropriate instruments for so doing, taking into account the methodological points discussed in previous chapters.

Together with municipal officials, we explored the possibility of using or betterment Land Tax and impact fee levies as instruments for Value Capturing. We rejected this first option due to the insufficient flow of revenues from the property tax due to its very low rate which is Impact fee and urban land tax.

Using the proposed methodology, we established via analysis of cadastral data and development of valorization models that land value capture could potentially finance the interventions proposed by the Program by Betterment Levy. So the one-time betterment levy on a property is calculated 16108 and if we

predict 1% increase in cadastral value due to program intervention which is inner ring road for our case study then betterment levy would be rupees 22530, for 2% it would be rupees 45060 and so on.

So through betterment levy 88% of the total project cost can be covered, which is project cost is 8.8 crores for the stretch selected and through value capturing 7.8 crores can be generated which is 88% of the total project cost (Inner Ring Road)

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With regard to the implementation of the interventions and in line with the Silvassa Inner ring road case study following recommendations can be made.

 Modify the regulations on land use to make the proposed interventions viable and to raise density levels.

o The project was conceived on basis of EPC contract, so if we incorporate value capture along with it, the project becomes sustainable over time and helps to generate additional revenues for municipal finances and mainly other infrastructure projects.

o Explore the concept of “Relation value price”. It depicts how the value(funds) generated can benefit the owner and the excess money generated is the profit of the contractor.

o Also the proper property mapping and need for updating the cadastral data is needed (for which a survey is been carried out)

o Modify the regulations on land use to make the proposed interventions viable and to raise density levels. Introduce a support program for low-income families, especially those that are not owners (e.g. tenants).