Land Value Capture along Rapid Transit Corridor Case : NOIDA and Greater NOIDA

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