PORTFOLIO
LAND VALUE CAPTURE ALONG RAPID TRANSIT CORRIDOR CASE : NOIDA AND GRETAER NOIDA
EDUCATION SCHOOL OF PLANNING AND ARCHITECTURE BHOPAL ( SPA)
Master of Urban and Regional Planning ( MURP) August 2018- July 2020
DIVYANGNA NEERAJ Architect Urban and Regional Planner Email id : ar.divyangnaneeraj@gmail.com Address : Bulandshahr, Uttar Pradesh Mobile No. : 9717503823
ABOUT ME
I am an ambitious, smart working and disciplined person. I love to explore new things in day to day life. I believe in possessing detail and in depth knowledge of a subject. Being an Architect, I have served the society with my skill and knowledge. Being a part of profession of Urban and Regional planning has widened my scope of learning, providing me a chance to serve the nation at macro level. It will be my opportunity to be part of your programme and serve you with best of my skill and ability
SDCA (SUNDERDEEP COLLEGE OF ARCHITECTURE), GHAZIABAD Bachelor of Architecture(B.arch) August 2012- July 2017
PROFESSIONAL EXPERIENCE (24 Months) EFFECTIVE ARCHITECTURE SERVICES, GOA Architect and Urban Planner September 2020- At Present
TOWN AND COUNTRY PLANNING ORGANISATION, NEW DELHI Planning Intern May 2019- June 2019
NEXUS CREATIONS PLANNING AND ARCHITECTURE FIRM, NEW DELHI Assistant Architect May 2018- July 2018
INDICA CONSULTANT GHAZIABAD Jr.Architect August 2017- December 2017
GOEL AND ASSOCIATES, CONSULTING ARCHITECTS AND ENGINEERS, NEW DELHI Trainee July 2015- December 2015
PROJECT – RESTORATION AND CONSERVATION WORK OF CHAPEL OF OUR OLD LADY OF MONTE ELLA CHURCH, GOA Key Role: • Designing of Truss roof and joinery details • Preparation of Good for Construction drawings for Execution • Assist the team as per work projectory and ensure timely deliverables of phase execution of project. • Coordination with Estimate department to resolve financial issues PROJECT – COMMERCIAL TOWER SAKAL GROUP Key Role: • Preparation of Conceptual Plan and presentations • Preparation of Presentation drawings. Assist and guide Submission team for the approval of drawings • Took decisions in designing to ensure maximum usage of Permissible FAR PROJECT – KPT (DPT) AUDITORIUM, GUJARAT Key Role: • Designing of HVAC Layout and preparation of drawings • Designing of False celling • Preparation of Wall Cladding and Interior drawings • Preparation of list of material used and coordinate with contractor for smooth execution PROJECT – GOA STATE MUSEUM Key Role: • Preparation of Detailed Project Report as per guidelines issued by Ministry of Culture • Coordination with Project team for project brief and drawings • Discussion with the project head regarding concept to elaborate it in the most effective way • Coordination with the client PROJECT – RESIDENTIAL , GOA Key Role: • Preparation of Conceptual Plan and presentations • Preparation of Presentation drawings. Assist and guide Submission team for the approval of drawings • Assist the team for preparation of working drawings • Discussion with the client and meetings PROJECT – NUIS SCHEME AND AMRUT SUB-SCHEME Key Role: • Preparation of Project Closure Report of NUIS Scheme • Preparation of Technical report- Critical analysis of NUIS Scheme and AMRUT Sub-scheme • Present report findings at meetings
SKILLS • Research and Analysis oriented • Excellent communication and writing skill- Creative Writing • Writing technical reports/ approach and methodology • Coordination and discussion with Client and Government officials • Writing, formatting and submitting work report to the client • Effectively worked on project of Different scales - Regional and SubRegional Plan, Development Plan • Meet with public officials, developers and other stakeholders in relation to work • Understand and Analysis of documents of Laws and Governance ( government’s document) • Design relevant surveys to identify areas of public concerns • Analyse and interpretation of data as per objective • Prepare, develop and edit drawings as per directions • coordinate technical and administrative activities with other departments participating on an assigned project • Assist in the training and evaluation of assigned drafting personnel/ trainee. • Performing basic Architecture calculations • Preparation of Concept sheet and PowerPoint Presentations. • Preparation of Working drawings • Direct involvement with client for drawings requirement , deliverables and updating the concern department regarding arising issue, if any. • Proof-reading
PUBLISHED WORK
An Article- Published by Planning Tank “Digging Deeper into Unauthorised colonies in Delhi” Link: https://planningtank.com/urbanisation/digging-deeper-unauthorised-colonies-delhi Portfolio- Published on Issuu Post Graduation Thesis Link: https://issuu.com/divyangna5/docs/ land_value_capture_along_rapid_transit_corridor
CERTIFICATIONS
Architect Council of Architecture- India Credential ID CA/2017/87611 Associate member of Institute of Town Planners India Membership No. 2020-488 Certified Diploma in Autocad Certified Diploma in 3D Max
COURSES
Workshop on “GIS and Universal Accessibility” at SPA Bhopal 4th Smart city India Exhibition and Conference Incorporating Building India, Solar India, Transport India, Water India at Pragarti Maidan
ACHIEVEMENTS
Participated at Landscape Design TrophyRanked-2nd in Archventure Gateway College of Architecture and Design, Sonipat
ACADEMICS PROJECTS LAND VALUE CAPTURE ALONG RAPID TRANSIT CORRIDOR CASE: NOIDA AND GREATER NOIDA ( Post Graduation Thesis) The study focuses to investigate how the development agencies involved will be able to capture the land value. The research has been made in view of “If Noida Authority is required to broaden revenue source, Is it adopting the most effective method of Value capture mechanism or Is there scope of betterment? “ Key Role: • Performed Household survey and formal discussion with officials and other stakeholders. • Visit official department for data collection- Noida Development Authority, Ghaziabad Development Authority • Performed Land Use Survey • Identification of problem and critical analysis towards the solution. • Proposal and Implementation framework COIMBATORE REGIONAL PLAN 2038 ( Project Initiated by GIZ Consultancy) Key Role: • Performed land suitability analysis for Eco-sensitive areas through application of Arc GIS followed by proposals and strategies for long term implementation. • Meet with public officials, developers, and the public regarding Regional plans and land use REGIONAL PLAN OF GANJAM DISTRICT 2040 (Post Graduation Third Semester Studio Project) Key Role: • Effectively worked upon Environment sector, performed Vulnerability Analysis for Salt- water Intrusion using GALDIT to inculcate solutions to make the district resilient.- Disaster Risk Assessment and Management DEVELOPMENT PLAN FOR MADURAI CITY 2040 (Post Graduation Fourth Semester Studio Project) Key Role: • Tourism Development Plan. • Conduct field investigations to analyze factors affecting community development and decline, inArc GIS cluding land use Auto CAD • Preparation of Technical Report Abode Photoshop
SOFTWARES
Arc GIS
Sketch up
Auto CAD
3D Max
Abode Photoshop
MS Office
Sketch up 3D Max MS Office
P
rovision of Transportation infrastructure in an area induces a great impact on surrounding land and property values. It improves the accessibility of surrounding properties, which get further reflected in property values as per classical economic geography theories (Von Thune 1826; Weber 1929; Alonso 196).Land value capture is an effective financing mechanism to generate revenue through capturing the increment amount in land values resulted from the investment made in public transportation improvement by government bodies/ local bodies. Various VCF( Value capture finance) tools are used to capture the increment which is further used to fund public projects. The study aims to follow Area-based approach for Land value capture. It focuses to analyse the change in land and property values before and after the initiation of infrastructure development project, to examine the adequacy of development authorities to capture that uplifted value and use as a source of revenue generation. It is the exploration into what other methods can be adopted to best capture the land value. The case areas selected for the study are NOIDA and Greater NOIDA, the industrial townships set up under U.P Industrial Area Development Act,1976. The phase development of metro has been observed in these areas. The current practices of land value capture mechanism adopted by NOIDA and Gr.NOIDA development authorities are reviewed, thus help to establish the gap between price increased and value captured. The study aims to investigate the effectiveness and quantifying the existing land value capture mechanism.
Source: https://indianexpress.com/article/cities/delhi/noida-metro-seeks-public-opinion-on-aqua-line-5403567/
VCF tools as per needs of the area abiding by existing rules and regulations. The possible changes will be identified in legislation to suggest more effective mechanism of LVC for NOIDA-Greater NOI
The NOIDA Development authority bears the maximum burden of cost of construction of metro stated as 74.87%, provided as per detailed project report of Metro extension from NOIDA City Centre to sector 62 NOIDA and NOIDA-Gr.NOIDA metro rail corridor. It is thus necessary to find the alternative sources of revenue generation to recover the investment made by authority, also to support the added infrastructure investment due to Metro. The ownership of the land resides with development authorities.DMRC(Delhi Metro Rail cooperation) and NMRC( Noida Metro Rail cooperation) has provided only “User rights”. The study focuses to review the revenue generation mechanism of NOIDA and Gr.NOIDA to come up with applicability of different
Source: https://www.hindustantimes.com/noida/consultant-begins-exerciseto-increase-noida-authority-s-revenue/story-WUd 0zGtpBO.html
-DA rail corridor (aqua line) based on the early phases of development (blue line) within jurisdiction limit of NOIDA and Gr.NOIDA The NOIDA Development authority bears the maximum burden of cost of construction of metro stated as 74.87%, provided as per detailed project report of Metro extension from NOIDA City Centre to sector 62 NOIDA (50.80%) and NOIDA-Gr.Noida metro rail corridor (23.99%). There is no property tax levied on the residents of NOIDA city. NOIDA development authority provides the land on lease period of 99 yearsThere is no land under Metro. Everything is on lease.
“It is thus necessary to find the alternative sources of revenue generation to recover the investment made by authority, also to support the added infrastructure investment due to Metro.”
ENDUSERS
GOVERNMENT AGENCIES ( ULB’S OR DEVELOPMENT AUTHORITIES)
DEVELOPERS
DIFFERENT STAKEHOLDERS INVOLVED TO MONETIZE FROM INCREASE IN LAND VALUES DUE TO INFRASTRUCTURE DEVELOPMENT
Land value capture happens for different stakeholder in different ways. When there is a piece of land or property and its value increases, it can be monetized by end users who is using that property. It can be monetized by developer who is developing that property and finally it should come to the government. In most cases, when infrastructure lines comes in, it increases the value of property which is monetized by end users through changing their land use from residential to commercial, generating rent from additional floors to capture the land value themselves.
RESEARCH QUESTION
If Noida Authority is required to broaden revenue source, Is it adopting the most effective method of Value capture mechanism or Is there scope of betterment?
Aim
To develop an efficient mechanism of Land value capture along NOIDA-Greater NOIDA Metro rail Corridor of Gautam Budh Nagar District,(U.P)
Objective 1
To assess the impact of Metro access on land and property Price increase along existing and recently planned Metro line
Objective 2
To investigate and quantifying the land value capture mechanism used by NOIDA authority for land value capture and establish a gap between price increase and Value capture.
Objective 3
Developer do it by changing the format from ,low rise to higher density using ,ore of FAR. But very often this increase in value do not translate to increase in revenue for ULB’s or development authorities
To suggest a more effective mechanism of Land value capture for Noida-Gr.Noida Metro rail corridor based on findings of early phases of development
‘The focus is to investigate how the agencies involved will be able to capture the land value increase’’
• The study is delaminated within jurisdiction limit of Noida • To develop a better mechanism for land value capture along New phase extension from gr. Noida to Noida on the basis of trend identified in earlier phase of development from Indraprastha to Noida city centre and from Noida sector 32 city centre to Noida electronic city
Scope and Limitations
WHO IS CAPTURING
THE VALUE ?
VALUE CREATED
AGAIN USE FOR PUBLIC INVESTMENT
VALUE REALIZED
VALUE CAPTURED
Land value capture is an effective financing mechanism to generate revenue through capturing the increment amount of land values resulted from investment made in public transportation improvement by government bodies/local bodies. Various VCF( Value capture finance) tools are used to capture the increment which is further used to fund public projects. Thus, formed a vicious cycle. (VCF Policy Framework Ministry of Urban Development) PRINCIPLE BEHIND VALUE CAPTURE
Private land and buildings benefit from public investments in infrastructure and policy decisions of Governments (e.g. change of land use or FSI) VCF tools can be deployed to capture a part of the increment in value of land and buildings In turn, used to fund projects being set up for the public by the Central/State Governments and ULBs
TOOLS FOR VALUE CAPTURE Method Define In practice Land Value tax Apart from capturing any value increment, Maharashtra and Tamil Nadu through helps stabilize property prices, discourage state laws speculative investments and is considered to be most efficient among all Value Capture methods Fees for changing land revenue codes provide for procedures to obtain permission for conversion of land land use use from agricultural to non-agricultural use Betterment levy The municipal authority is empowered to The Mumbai Metropolitan Regional collect external betterment charges at the Development Authority (MMRDA) Act, time of according approval to layouts or 1974 sub-divisions of plot or issue of building permit for the laying of trunk water lines, The Hyderabad Municipal Corporation Act, development of freeways/major roads 1955 originally provided for the levy of betterment charges
Development charges (Impact fees)
These are area based and link the development charge to the market value of land by carrying out periodic revisions
Andhra Pradesh, Gujarat, Maharashtra, Tamil Nadu and Madhya Pradesh levy Impact Fee and collect it upfront while granting development permissions
Transfer of Development Rights (TDRs)
used for trading development rights
Maharashtra, Karnataka and Gujarat have enabling laws for using TDRs for developing open spaces, promoting affordable housing, etc
Premium on relaxation of rules or additional FSI/FAR Vacant Land Tax (VLT)
Allow for additional development rights Maharashtra, Karnataka, Gujarat, Tamil beyond the permissible limits in the State Nadu Town Planning Laws and Regulations It is applicable on those landowners who have not yet initiated construction on their lands
Andhra Pradesh, the Greater Hyderabad Municipal Corporation (GHMC) imposes a tax of 0.5% of the registration value of the land if land is vacant without a building
Land pooling System (LPS)
all land parcels in an area are pooled, converted into a layout, infrastructure developed, and a share of the land, in proportion to original ownership, returned as reconstituted parcels
States such as Gujarat and Haryana have used land assembly programs where the owners agree to exchange their barren lands for infrastructure-serviced smaller plots
Land Acquisition and Development
Acquiring and developing land could be In Hyderabad :‘Road widening Scheme’ is adopted as a useful Value Capture method being implemented in Hyderabad in which to mobilize resources the Municipal Corporation gives additional FAR for property owners who give land free of cost for road widening
TAX OR FEE BASED MECHANISM
GREEN FIELD PROJECTS
PROJECT BASED MECHANISM
BROWNFIELD PROJECTS
BROWNFIELD AND GREEN FIELD PROJECTS
E ach of the objective of the study area has been divided in to various sub-tasks. In order to obtain first objective to assess impact of metro access on land and property price, temporal analysis and Hedonic Pricing model have been performed. In Temporal analysis, the spatial mapping, price mapping and distance gradient mapping is performed. The task is to showcase chronological mapping of development in NOIDA before and after commencement of metro. Usually, the market rates and Circle rates define the real estate dynamics of an area; however, the city of Noida and Greater Noida has its separate land rates, decided by the development authorities. Land use conversions over the years have been analysed through the Master Plan 2011,2021 and 2031.The distance gradient mapping is performed for two interchange transit station i.e. Botanical garden and Noida sector 52, creating a buffer of 1000m from the transit station and along the corridor i.e. from Botanical garden to Noida sector 52. The buffer is selected as per the guidelines of National TOD Policy considering the influence zone of 1000m around the transit station. The Land use survey has been performed for the influence zones. The output of the first objective is to identify the escalation in Price due to metro over time, whether the development authority was able to capture that change or escalation in Price. The Land use survey has been performed for the influence zones. The Land use survey has been performed for the influence zones. The Bult-up survey is performed to understand the transformation of built up area over the time with reference of development of transit corridor and FAR consumed. The output of the first objective is to identify the escalation in Price due to metro over time, whether the development authority was able to capture that change
or escalation in Price. Also to find the lacunas where land value capturing in Noida is failing. The results will help to understand the effectiveness of existing LVC tool ( Increased FAR) adopted by NOIDA Development authority. In order to attain objective 2, various mechanism of Land value capture have been compared across globe and in India through case examples. The following parameters have chosen to draw comparison and to choose the best mechanism of LVC in order to apply on study area: Location, Project name, Aim, Need of project ,Key aspect, Type of Transit, Ownership, Company, Contribution of LVC financing (%), LVC tools adopted, Funding pattern, Land administration system, benefits and impact. The local governance and fiscal system of NOIDA and Gr.Noida has been studied.
The analysis of prevailing acts and rules at state, district and local level have performed to find lacunas within institutional framework. The current practices of land value capture mechanism adopted by NOIDA and Gr.NOIDA.The development authorities are reviewed, thus help to establish the gap between price increased and value captured. In order to attain objective 3, the need to have changes in Legislation for effective land value capture mechanism is identified. The task is performed to identify the implementation of proposed land value capture mechanism and who will capture that value.
STUDY AREA
The study area is limited to Phase II ,Phase III extension of Delhi Metro lies within jurisdiction limit to NOIDA City along with New Phase development of Metro envisages by Greater Noida Development Authority connecting Noida sector 52 to Depot. Station ( Gr Noida). NOIDA is formed under U.P. Industrial Area Development Act 1976. It is one of the planned and industrial city. The city is spread over an area of 20,316 hectare and consist 81 villages of district Gautam Budh Nagar. (Noida Authority, n.d.)
CHRONOLOGICAL DEVELOPMENT (SECTORAL)
1998-2000
2001-2011
2011-2020
Typology
Max. permissible FAR
Group Housing
1.5
Residential Plot
1.25
Typology
Max. permissible FAR
Group Housing
2.0
Residential Plot
1.5-2.00
The sectoral development in NOIDA Typology has been compared to bye-laws revised in different years from 1986 to 2010. It has been observed that the limit of max- Group Housing imum permissible FAR has been in- Residential Plot creased from 1.5 to 2.75 for the current.
Max. permissible FAR 2.75 1.8
‘The phase development of Metro in Noida has bee observed’’
Bye laws 2006 Bye laws 1986
1980-1998
Bye laws 2010
1980
The map is showing chronological development in NOIDA from 1980 to 2020 as per proposed master plan of 2001, 2011 and 2021.The phase development of metro has been observed in NOIDA.It has been observed that the area around transit corridor ( blue line) has been developed a long back during 1980-2000. The majority of the land parcels around the (transit corridor) Aqua line are vacant and demarcated in to different land uses and sectors as per proposed master plan of Noida 2021.
Noida sector 15- Noida City centre Noida city centre-Noida electronic centre Noida city 51- Greater Noida Depo.
OBJECTIVE 1
The distance gradient mapping is performed for two inter-change transit station i.e. Botanical garden and Noida sector 52, creating a buffer of 1000m from the transit station and along the corridor i.e. from Botanical garden to Noida sector 52. The buffer is selected as per the guidelines of National TOD Policy considering the influence zone of 1000m around the transit station. The Land use survey has been performed for the influence zones. The impact areas of 800m and 1km are considered for performing built-up survey around two transit stations i.e. botanical garden and sector 52 Noida ,having different operational years. PERCENTAGE SHARE OF DIFFERENT LAND USE R1-Residential Plot
3%
Group Housing Commercial
17%
Recreational Vacant Existing Abadi Area
2% 28%
9% 10%
Institutional Public & Semi-Public
25%
6%
Public Utilities
SURVEYS PERFORMED Surveys performed
location
Land use Survey
Within 1km buffer along transit corridor (Blue line)
Sample size
90 samples Of Housing complexes Within 1km buffer from comprising of 4674 1.botanical garden housing units Built-up Survey 2.Sector 52 transit station Stakeholder survey with officials(intervi ews and Noida Development Authority discussions) Perceptual survey of Residents (Within 1km buffer along transit corridor (Blue line) 150 samples survey conducted
PROPOSED LAND USE AS PER MASTER PLAN Observation of Residents: There is no Property tax levied 6000 5000 upon They haven’t captured the value 4000 by using LVC tool of additional 3000 2000 FAR. As per their views, there is not 1000 0 much effect has observed of Residential Commercial Industrial Public and metro around botanical garden. semi-Public
1997 2001 After Metro 2006 2011 2021(Proposed)
Recreational Transporation
After Metro construction in 2009,The major increase in proposed land use of Residential, Industrial , Recreational and Transportation has been observed . Master plans was receptive to metro hence made changes in land use contribution, considering the mass transit has been coming up. Commercial land use has not increased much so land value capture mechanism has not been so significantly looked upon
Location
Impact Typology area
No. of Period Sample map Percent Avg.No. of Avg. age of Design Type and construc FAR surveyed share Floors tion (units)
Flatted Cluster 1988800m Flatted 2022 Residential Plotted and Botanic Plot Independent al Garden Flatted Group Cluster 1990800- Housing 2022 1000m Residential Plotted and Plot Independent Total Group Housing
165 499 85
20% 60% 10%
3 6 3
0.67 1.12 0.58
Max. Max. Max. Permis Permissib Permissib sible le FAR as le FAR as FAR as per per per byelaws byelaws byelaw 2006 1986 s 2010 1.5
2.00
2.75
86 36 256
10% 8% 50%
2 3 6
0.98 0.83 0.77
1.25
1.5-2.00
1.8
1.5
2.00
2.75
218 1345
42%
2
1.2
1.25
1.5-2.00
1.8
Sectors
PERCENTAGE SHARE OF BUILDING FOOTPRINT (1KM BUFFER)
2001
16%
Impact area
Total builtup area (sqm)
Total land area (sqm)
Consume d FAR
2011
14% 70%
INFERENCES
Interchange Transit station
2020
• 70% of development has already been occurred before metro i.e. before 2009 and typology of housing unit was mainly cluster type. The permissible FAR at that time was 1.5 which is much lesser as compared to the current permissible FAR. • After increasing the Max. permissible FAR to 2.75 , the housing unit of flatted type must come up; however, the more number of cluster typology has been observed • Even the bye-laws and master plan permits more FAR but typology which has been built is clustered type rather than flatted type. • Now to achieved the full FAR of 2.75 from average
Botanical Garden
800m
8,08,390.24 7,15,675.72
1.13
800m1000m
2,58,180.18 2,85,879.34
0.90
consumed FAR of 0.77 for clustered type group housing is much difficult. • Even if the max. permissible FAR is increased as 70 % of land is already built up and is largely as cluster type. It will be difficult to transform this building typology to achieve the increased FAR. • Development pattern is such that value capture is difficult and with a particular typology where conversions to higher FAR is not easy. Individuals may be benefitted from the incremental change and through building use changes
“LVC TOOL : INCREASED FAR” CHRONOLOGICAL DEVELOPMENT
Perio d of const ructio Impac Location t area Typology Design Type n Group 20002008 Housing Flatted Cluster 800m Plotted and Residential Independen Plot t Sector 52 Group 20002009 Cluster 800- Housing 1000 Plotted and m Residential Independen Plot t Total
Max. Permissibl No. of e FAR as per Sample Avg.N byelaws surveyed Percenta o.of 1986 (units) ge share Floors Avg. FAR 800 530
47% 31%
4 5
1.28 1.83
1.5
Max. Max. Permissi ble FAR Permissible as per FAR as per byelaws byelaws 2006 2010 2
KEY MAP
2.75
Sectors
377
22%
2
1.08
1.25
1400
86%
8
1.62
1.5
222 3329
14%
2
1.25
1.25
1.5-2.00 2 1.5-2.00
1.8 2.75
Survey Location 2 (Sector 52)
1.8
PERCENTAGE SHARE OF BUILDING FOOTPRINT (1KM BUFFER)
Interchange Transit station
29%
32%
Impact area
Total built-up Total land Consum area (sqm) area ed FAR
2001 2011 2020
39% INFERENCES
• In this, around 71% OF land has already been developed before the metro ( before 2019) • The average consumed FAR is much higher i.e.1.25-1.83 as compared to earlier case. So the chance of getting monetizing this is more rom these areas rather than from the older areas. • Since these areas have come up in later part, it can consumed the full max. permissible FAR since the number of floors have been built according to that and are much higher. • Sale of Additional FAR can be done on vacant land and if building typology can bear the
Sector 51
800m
2,41,381.09 1,99,587.1
1.21
800m1000m
2,01,225.76 1,78,306.82
1.13
transformation and have additional floors. If typology doesn’t permit, that means demolition and rebuilding which is often faced opposition from stakeholder and a difficult option • Since there is no property tax in Noida, the development authority is not able to capture monetary benefit from increasing FAR in Master Plan
“LVC TOOL : INCREASED FAR AND PROPERTY TAX”
CHRONOLOGICAL DEVELOPMENT
RESIDENTIAL PLOT- CIRCLE RATES AS PERMITTED BY REVENUE DEPARTMENT
₹ 1,20,000.00
OBJECTIVE 2
₹ 1,00,000.00
DIFFERENCE BETWEEN LAND RATES AND CIRCLE RATES
Sector 51
₹ 20,000.00 ₹ 15,000.00 ₹ 10,000.00
Rates
₹ -5,000.00
Sector 61 Sector 71
₹ 60,000.00
₹ 5,000.00 ₹-
Sector 52
₹ 80,000.00
Sector 72 2006
2007
2008
2009
2010
2011
2013
2014
2018
2019
₹ 40,000.00
Linear (Sector 51) Linear (Sector 52) Linear (Sector 61)
₹ 20,000.00
₹ -10,000.00 ₹ -15,000.00 ₹ -20,000.00 Source: Data source
₹-
Year
Sector 51
Sector 52
Sector 61
Sector 71
Sector 72
INFERENCES
• It has been observed that NOIDA rates are lower than what has been prescribed by revenue department . • More the difference between circle rate and land rates, depicting the incapability of Noida Development authority to capture the change in land values. • The operational year of metro line is 2019. For the year 2018-19, Noida development authority has captured the change only for sector 71 and 72. • Sector 71 and sector 72 have vacant land lie near to the metro line ( blue line) of operational year 2019, Noida Development authority is keeping the land rates higher for upcoming land parcels. • Whereas the other sectors have largely saturated at earlier points, even the metro was there , there was no consorted effort to capture it. • The only option the Noida development authority is using through sale or leasing of land , in which the authority is keeping land rates higher for upcoming sectors i.e. vacant plots. • When the metro comes at later point where the built-up is already done then the TOD
Source: Data source
2004
2006
2008
2010
2012
2014
2016
2018
2020
RESIDENTIAL PLOT- CIRCLE RATES AS GIVEN BY NDA
measures is difficult because the typology of development is not permit to enhance FAR Even if the max. permissible FAR is increased as 70 % of land is already built up and is largely as cluster type. It will be difficult to transform this building typology to achieve the increased FAR. Development pattern is such that value capture is difficult and with a particular typology where conversions to higher FAR is not easy. Individuals may be benefitted from the incremental change and through building use changes Sale of Additional FAR can be done on vacant land and if building typology can bear the transformation and have additional floors. If typology doesn’t permit, that means demolition and rebuilding which is often faced opposition from stakeholder and a difficult option Since there is no property tax in Noida, the development authority is not able to capture monetary benefit from increasing FAR in Master Plan
₹ 1,20,000.00 Sector 51
₹ 1,00,000.00
Sector 52 ₹ 80,000.00
Sector 61 Sector 71
₹ 60,000.00
Sector 72 Linear (Sector 51)
₹ 40,000.00
Linear (Sector 52) Linear (Sector 61)
₹ 20,000.00
Linear (Sector 71) ₹-
2004
2006
2008
2010
2012
2014
2016
2018
Linear (Sector 72) 2020
• Location Charges • Building Plan Fees Lease Rent • Land Use Conversion Charges • Registration Form Developmen Cell Charges • Functional Charges t Charges • Interest on Housing Building Advance • Interest on Time Instalment Extension • Interest on Lease Charges of Rent Lease • Sale of Scrap • Penalties • Park Booking Location Charges Charges • Community Hall Booking Charges • Rent from Stadium (Sector-12) Sale of Additional • Rent from Staff Quarters ( Sector FAR 27,82) • Road Cutting Fees • Restoration charges VCF TOOL IN UTTAR PRADESH • Provision of Tax on conversion of land is provided under the Zamindari Abolition and land Reforms Act; consolidation of holding act. • Provision of betterment levy is provided under
14.18% ( Equity) 14.18% ( Equity) 23.99% 3.28% 32.71% 5.83%
Billions
15 10 5 0
SOURCES OF FUND 20 15 10 5 0
2018-19
FUNDING PATTERN OF METRO EXTENSION FROM NOIDA CITY CENTRE TO SECTOR 62 NOIDA Grant by GOI Grant by NOIDA RS by DMRC
51% Source : DPR of Metro extension from NOIDA City Centre to sector 62 NOIDA
INFERENCES
25
SD for CT by GOI ( 80%) SD for CT by NOIDA ( 20%) Land free of cost by NOIDA
section 35 of Uttar Pradesh Urban Planning and Development act 1973 • Provision of Development charges/Impact fees is provided under section 14 and 15 of Uttar Pradesh Urban Planning and Development act 1973
2012-13
Fund for New Infrastruture facilities
Source : DPR of NOIDA-Greater NOIDA Metro Rail Corridor
20%
Expenditure
20
5.83%
2%5% 13% 9%
Income
25
Source: Data source
FUNDING PATTERN OF AQUALINE
Central State NOIDA authority GNIDA Loan from NCRPB Subordinate debt for central taxes by GOI Subordinate debt for central taxes by GOUP
30
Billions
REVENUE SOURCES IN NOIDA
INCOME AND EXPENDITURE OVER THE YEARS 35
Fund for Maintenance & Creation of Public Utilities Source: Data source
SOURCES OF FUND OF NDA Billions
OBJECTIVE 2
POWER OF NOIDA DEVELOPMENT AUTHORITY • Sell, lease or transfer of land by auction and allotment • Provide direction in terms of building errection • To do maintenance of site and building by own and recover the cost from occupier or directly send notice to owner regarding it • Levy of tax: Total amount of tax should be less than 25% of annual value of site or building • Power to exempt the tax wholly or partially • Power to make rules and regulation with approval of state government • To impose penalty
2012-13
Fees and charges
• Regular income pattern of NOIDA Development authority will not be able to cope with this excess load of metro funding, Since the difference in income and expenditure amount for year 2018-19 is not much enough hence it is not sufficient to fund the metro. Hence new ways of Revenue generation will be required that’s why land value capture becomes essential as a tool.
2018-19
5 4 3 2 1 0
lease rent
• For the year 2018-19, the difference between income and expenditure has not observed much. • For the year 2012-13, it has been observed that income received is higher than that of the expenditure hence the following comparisons have made between the current year (2018-19) and 2012-13
7 6
• The NOIDA Development authority bears the maximum burden of cost of construction of metro stated as 74.87%
OBJECTIVE 2: COMPARISON OF VARIOUS MECHANISM OF LAND VALUE CAPTURE
Location
Key Aspect
Tokyo Japan Railway privatization
Type of Contribution of LVC Tools Transit LVC Financing 1. Land Readjustment & lease RRTS 59% 2. Auction Incentivize Land Readjustment (Developer FAR 3. Fuel Tax &Vehicle Registration fees Under1.Purchase of additional Air rights ground to construct above allowable FAR Metro by private landowners 2.Additional Building Charge 3.Betterment Levy MTS 1. Land Tax 2. Betterment levy 3. PPP
Sau Paulo, Brazil
1. Electronic Auctioning of limited building
Warsaw, Poland
1. Phase-wise development of Metro 2. Incremental selling price of houses (1km radius) 3. Decentralization of public finance
Hong Kong SAR, China
1.Property development rights on govt owned Metro( 23% land given by China govt at “Before-rail Market Heavy Price” and 2. Partnership of MTR with private developers tolight develop land and sold at “After-rail” market rail) price.
rights i.e. 1 CEPAC/0.5 to 2sqm of additional building rights 2. Gradual release of additional FAR
Funding Pattern 1. Special Urban Railway Reserve Fund. 2. Revenue from real estate development
1.Urban development Fund
1. Partnership of MTR with private 1.Profit sharing model among MTR corporation, private developer helped to recover maintenance and operation cost developers and public agencies 2.38% MTR corporation’s income produced by property development.
Mumbai, Phase-wise release of land through auction Maharashtra
1. Development fees 2. Land leasing/auctioning
On-site infrastructure financed by private developer
Hyderabad, Telangana
Fund raised from land auctioning in 2006 and 2007 is 10 times the investment 1.Collection of Impact fee as one-time charge 1.Fund raised from 2.10-25% discount on impact fees rate for impact fees kept in a township projects& reduction in rate of impact separate account of fees by 50% in later years municipality, utilized for 3. Rate of impact fees kept higher for area Capital improvement falling under GHMC plan and Decongestion plan
1.Levy of Impact fees on development along Growth Corridors by municipal corporation 2.Impact fees kept higher for commercial activities 3.Development Deferment charge
1.Permission of additional FSI to construct vertically 2. Provision of TDR in case of no scope of vertical construction
1.TDR, Grant of additional FSI by HMC
1. 10% of project cost provided through loans from banks 2. 36% of project cost financed through PPP 3. 46% of project cost as a Loan from Japan International Corporation agency over a period of 30 years 4.20% of project cost covered as a grant from HMDA
Hyderabad, Telangana
INFERENCES BENEFITS 1. Accessibility factor 2. Rent from properties 3.Development growth centers 4. Recovered operational cost from revenue 1. Fund raised bysale of additional building rights, used for infrastructure construction 2. Utilization of raised fund towards affordable housing projects etc. 1.The tool is not so cost effective but good in long-term 2.PPP model(2009): (preemption rights and less time consuming procedures) 1. Model helps to combine different phases of property and rail development projects. 2. MTR Corporation protected from market risK 1. Fund from land auction at BKC used to finance MUTP 2.Opportunities for residential and commercial development 1.Impact fees levied to mitigate the impact of increasing commercial activities along Growth Corridor
Road widening scheme was an opportunity to business people for redevelopment of commercial buildings.
OBJECTIVE 3
MASTER PLAN HAS TO DEFINE DENSITY AND FAR ZONES WITHIN BUFFER ZONES, GREEN FIELD AREA AND EXISTING RURAL AREAS
LAND AQUISTION MODEL
LEVEL 3
CHANGE IN LAND USE IMPLEMENTATION FRAMEWORK
AIR RIGHTS
commercial Industrial
Public $ semipublic Recreational Residential SDA
1%1% 5% 4% 6%
16% 9%
Source: Data source
Three level of changes are required in the administrative framework: Noida Development Authority act has to be empowered with certain new powers to adopt the proposed land value capture tools. Master plan has to define density and FAR within buffer zones of 500m and 1km from transit corrdior, greenfield areas,existing rural areas which will convert into urban area in future. Implementation framework: Under this, land acquistion model,PPP model, Air rights will be considered.
HIGH FAR & HIGH DENSITY FOR BUILT UP PROPERTY TAX
Land use conversions (within 500m buffer)
The proposed LVC Tools: •Tool for land: It includes auctioning and leasing of Industrial and commercial land parcels. The industrial and commercial vacant parcels within buffer of 1km from transit corridor ( refer map 6) will be auctioned or sale by Noida development authority to different stakeholders. Also the revenue will be generated from sale of excess FSI
PPP MODELS
PERCENTAGE SHARE
NOIDA Development authority has power to sell ,lease and auction the land. These are the existing LVC tools used by authority to generate the revenue. The changes in powers of Noida development authority require in order to adopt the new proposed tools of Land value capture.
NOIDA DEVELOPMENT AUTHORITY EXISTING LVC TOOLS LEASE SELL AUCTION LEVEL2
CHANGE IN POWERS OF NDA TO IMPLEMENT PROPOSED TOOLS
LEVEL 1
THREE LEVELS OF CHANGES REQUIRED
The learnings from the earlier phases of development have used to give proposals of LVC tools for NOIDAGreater NOIDA metro rail corridor ( Aqua line ) ( refer map 6). Once the metro line construction happened, it is very less that can be monetized from capturing the land value. Hence, there is need to develop mechanism of land value capture at earlier stage only.
58%
In case of land lease, the land for metro as well as commercial with excess FAR will remain with Noida development authority. So, the mode of real estate funded development will be applied. In that stretch, the TOD of extremely high FSI will be allocated . The high end commercial strip will be auctioned out to private developers by Noida Development authority with extremely FSI. The tools will lead to the generation of fund for the development authority..
VACANT PARCEL OF LAND ALONG NOIDA-GREATER NOIDA TRANSIT CORRDIOR ( AQUALINE) AS PER NOIDA MASTER PLAN 2021 ( WITHIN 1 KM BUFFER FROM TRANSIT CORRIDOR)
NEW LVC TOOLS PROPOSED TOOL FOR LAND
TOOL FOR PROPERTY DEVELOPMENT
OBJECTIVE 3 AUCTIONING AND LEASING OF INDUSTRIAL AND COMMERCIAL LAND PARCELS
Industrial vacant patches Commercial vacant patches
PROPERTY TAX AIR RIGHTS
Industrial vacant patches Land use conversions
The already existing built- up area within the buffer of 1km from transit corridor is mainly exhibit rural character. The revenue generated from these area will be for long term. The land acquisition and market forces will act upon to convert them gradually in to urban areas. In order to capture the change in future, High FAR and property tax are suggested as LVC tools. In earlier phases of development of metro, the Noida development authority gradually increases the FAR which faced difficulty for its successful implementation as one of the land value capture tool on ground
Model of real estate funded development
•Tool for monetizing on property : It includes property development through PPP model
TOD of extremely high FSI will be allocated
sale of excess FSI
Generation of fund
Generation of fund
Under this, the Noida development authority will see the property development rights to Noida metro rail corporation (NMRC) at before rail market price. The NMRC will do partnership with private developers to develop the land at after rail market price. The model will serve as a profit sharing model which prevents public opposition and uncertainties of project. The suggested tool has derived from the learning made from different case studies of land value capture. The proposal has been suggested on the lines of Hong Kong model of land value capture mechanism
Land sale or land auctioned sale of excess FSI In case, Land lease
Fund generated will be deposited to separate fund account
PROPERTY DEVELOPMENT THROUGH PPP MODEL
INCREASED FAR
Land conversion to commercial (500m buffer from metro) by NDA Land sale or land auctioned
Residential vacant patches
BUILT-UP ( RURAL AREAS)
Developers will buy Additional Air rights to construct above allowable FAR
Land acquisition and market forces will act upon. To convert them urban areas. To capture the change in future, suggesting high FAR , property tax. In existing NDA gradually increases the FAR then it become difficult to do for plan development
Additional FAR air rights Development fees Generation of fund
• Maintenance of Metro • Affordable housing projects through cross subsidize • green areas development, • urban development • land regularization
IMPACT
•Tool for property Development : It includes increased FAR, Property tax and Air rights. It is suggested to convert industrial land parcels in to commercial use ( within 500 m buffer from transit corridor) .The tool of land use conversion will be applied. The converted industrial land use parcels to commercial will be sale or auctioned by Noida development authority. The fund will be generated from sale of excess FAR in these areas as well from land sale and auctioned out.
TOOL FOR MONETIZING ON PROPERTY
NDA SELL OF PROPERTY DEVELOPME NT RIGHTS
NMRC PARTNERSHIP PRRIVATE DEVELOPERS TO DEVELOP THE LAND Profit sharing model prevents public opposition and uncertainties of project
The fund generated from proposed tools will be deposited in to a separate fund account and will be used for following purposes •For the maintenance of metro , •Affordable housing projects through cross subsidizes •Development of green areas •Urban development and land regulations The low cost housing will be formed on land parcels proposed as SDA (special Development areas) as per the Noida master plan 2021 within buffer of 1km from transit corridor ( Aqua line). The effort has made to increase the housing densities within these areas so that they will be get benefited
D I V YA N G N A N E E R A J Architect and Urban Planner Email id : ar.divyangnaneeraj@gmail.com Mobile no. : 9717503823