PublicPrivatePartnership(PPP)
Ministry of Housing and Urban Affairs Government of India
21/09/2017
2
Agenda
Ø ListofPPPModels
Ø PPPModelsonGovernmentLand
Ø PPPModelsonPrivateLand
ListofPPPModels
PPPModelsonGovt.land
PPPModelsonPvt.Land
Government-land Based Subsidized Housing 1Mixed Development Cross-subsidized Housing 2Annuity Based Subsidized Housing 3
A
B
DBFMT : Annuity cum Capital Grant based Subsidized Housing 4Direct Relationship Ownership Housing 5Direct Relationship Rental Housing 6
Private-land based Subsidized Housing (CLSS Scheme for EWS/LIG/MIG)
Private-land Based Subsidized Housing (AHP Scheme for EWS)
UBLIC RIVATE
ARTNERSHIP
3
PMODELS
PPP Models on Government Land
PPP Models on Private Land
ListofPPPModels
Land Identification
Land Procurement
Land Provisioning
Preparation of Technical Guidelines
Beneficiary Identification
Beneficiary to pay a predetermined amount to PA
Transfer of Housing Units to PA by private
developer. PA to pay* back at
predetermined cost
Call for Bid Selection/Empanelment
of Private Developer
Bid Parameters: Per Unit Cost(Lowest lump sum amount)
Construction of Housing Project
Handover of Dwelling Units to Beneficiary
Beneficiary/ RWA to maintain the property
By Public Authority (PA)
By Beneficiary
By Private Developer
*ThepaymentbyPAtoprivatedevelopershallbemilestonebased.
Model 1 - Government-land Based Subsidized Housing Ac;vityFlowchart
Fixed Parameters: Predetermined number of units, area, time and specifications
ProjectStructureModel 1 - Government-land Based Subsidized Housing
PublicAuthority
PrivateDeveloper Beneficiaries
FinancialInsEtuEons
Providesubsidizedloan
Repaytheloan
Maintainhousingunit
• PayEMI/Lump-sumamount• Design,buildandfinance
housingunits• Transferhousingunit
• Seteligibilitycriteriaforbeneficiaries
• Handoverhousingunit
InterestSubvenEon
MonthlyreporEng
CentralNodalAgency(NHB/HUDCO)
5
ListofPPPModels
PPPModelsonGovt.land
Bidparameter:Perunitcost(lowestlump-sumamount)
• Preparetechnicalguidelines• TransparentSelecEon/
Empanelmentofdeveloper• Providelandfordevelopment• Milestonebasedpayment
Fixed Parameters: Predetermined number of units, area, time and specifications
Land Identification
Land Procurement
Land Provisioning
Preparation of Technical Guidelines
Beneficiary Identification
Beneficiary to pay a predetermined amount to PA
Transfer of Affordable Housing units to PA
Call for Bid Selection/Empanelment
of Private Developer Construction of Housing Project
Handover of Affordable units to Beneficiary
Beneficiary/ RWA to maintain the property
By Public Authority (PA)
By Beneficiary
By Private Developer
Difference from last Model
Bid Parameters: Number of affordable units provided @ rate fixed by State Nodal Agency
Model 2 - Mixed Development Cross-subsidized Housing Ac;vityFlowchart
Fixed Parameters: Predetermined area, time and specifications
ProjectStructureModel 2 - Mixed Development Cross-subsidized Housing
PublicAuthority
PrivateDeveloper Beneficiaries
FinancialInsEtuEons
Providesubsidizedloan
RepaytheloanDevelopsandleaseshigh-end
housing/commercialdevelopment
Maintainhousingunit
• Design,buildandfinancehousingunits
• Transferaffordablehousingunit
• Seteligibilitycriteriaforbeneficiaries
• Handoverhousingunit
• Preparetechnicalguidelines• TransparentSelecEon/
Empanelmentofdeveloper• Providelandfordevelopment
• PayEMI/Lump-sumamount
InterestSubvenEon
MonthlyreporEng
CentralNodalAgency(NHB/HUDCO)
7
ListofPPPModels
PPPModelsonGovt.land
Bidparameter:NumberofaffordableunitstobeprovidedongivenplotattheratefixedbytheStateNodalAgency Fixed Parameters: Predetermined area, time and specifications
Land Identification
Land Procurement
Land Provisioning
Preparation of Technical Guidelines
Beneficiary Identification
Beneficiary to pay a predetermined amount to PA
Handover of Housing Units to Beneficiary
through PA. Developer to receive
annuity payment
Call for Bid Selection/Empanelment
of Private Developer Construction of Housing Project
Maintenance of the Property by developer
By Public Authority (PA)
By Beneficiary
By Private Developer
Difference from last Model
Bid Parameters: Lowest Annuity Payment with NPV calculated at highest MCLR by SBI
* The lump sum payment/EMI received by PA shall be escrowed to Private Developer
Model 3 - Annuity Based Subsidized Housing Ac;vityFlowchart
Fixed Parameters: Predetermined number of units, area, time and specifications
ProjectStructure
Model 3 - Annuity Based Subsidized Housing
PublicAuthority
PrivateDeveloper Beneficiaries
FinancialInsEtuEons
Providesubsidizedloan
RepaytheloanMaintain
housingunit
• Design,buildandfinancehousingunits
• Transferhousingunit
• Seteligibilitycriteriaforbeneficiaries
• Handoverhousingunit
• Preparetechnicalguidelines• TransparentSelecEon/Empanelment
ofdeveloper• Providelandfordevelopment• Payannuityamountupto10years
• PayEMI/Lump-sumamount
InterestSubvenEon
MonthlyreporEng
CentralNodalAgency(NHB/HUDCO)
9
ListofPPPModels
PPPModelsonGovt.land
Bidparameter:LowestAnnuityPaymentwithNPVcalculatedathighestMCLRbySBI Fixed Parameters: Predetermined number of units, area, time and specifications
Land Identification
Land Procurement
Land Provisioning
Preparation of Technical Guidelines
Beneficiary Identification
Beneficiary to pay a predetermined amount to PA
Handover of Housing Units to Beneficiary
through PA. Developer to receive
annuity payment
Call for Bid Selection/Empanelment
of Private Developer Construction of Housing Project
Maintenance of the Property by developer
By Public Authority (PA)
By Beneficiary
By Private Developer
Difference from last Model
Upfront construction cost to be paid to
developer
*Capital grants payment to the private developer to be milestones-based.
Bid Parameters: • Lowest Annuity Payment
with NPV calculated at highest MCLR by SBI and fixed upfront grant*
Or • Lowest Upfront Grant with
fixed annuity
Model 4 – DBFMT : Annuity cum Capital Grant based Subsidized Housing Ac;vityFlowchart
Fixed Parameters: Predetermined number of units, area, time and specifications
ProjectStructureModel 4 – DBFMT : Annuity cum Capital Grant based Subsidized Housing
PublicAuthority
PrivateDeveloper Beneficiaries
FinancialInsEtuEons
Providesubsidizedloan
RepaytheloanMaintain
housingunit
• Design,buildandfinancehousingunits
• Transferhousingunit
• Seteligibilitycriteriaforbeneficiaries
• Handoverhousingunit
• Preparetechnicalguidelines• TransparentSelecEon/Empanelmentof
developer• Providelandfordevelopment• Payupfrontgrantandlong-termannuity
• PayEMI/Lump-sumamount
InterestSubvenEonCentralNodalAgency
(NHB/HUDCO)
11
ListofPPPModels
PPPModelsonGovt.land
Bidparameter:• LowestAnnuityPaymentwithNPV
calculatedathighestMCLRbySBIandfixedupfrontgrant
Or• LowestUpfrontGrantwithfixed
annuityFixed Parameters: Predetermined number of units, area, time and specifications
MonthlyreporEng
Land Identification
Land Procurement
Land Provisioning
Preparation of Technical Guidelines
Beneficiary Identification
Handover of Housing Units to beneficiary.
Beneficiary to pay to private developer
Call for Bid Selection/Empanelment
of Private Developer Construction of Housing Project
By Public Authority (PA)
By Beneficiary
By Private Developer
Difference from last Model
Maintenance of the Property by developer
Bid Parameters: Per Unit Cost (Lowest EMI/Lump Sum)
Model 5 – Direct Relationship Ownership Housing Ac;vityFlowchart
Fixed Parameters: Predetermined number of units, area, time and specifications
ProjectStructure
PublicAuthority
PrivateDeveloper Beneficiaries
FinancialInsEtuEons
Providesubsidizedloan
RepaytheloanMaintain
housingunit
• Design,buildandfinancehousingunits
• Transferhousingunit
• Seteligibilitycriteriaforbeneficiaries
• Handoverhousingunit
• Preparetechnicalguidelines• TransparentSelecEon/
Empanelmentofdeveloper• Providelandfordevelopment
• PayEMI/Lump-sumamount
CentralNodalAgency(NHB/HUDCO)
InterestSubvenEon
MonthlyreporEng
Model 5 – Direct Relationship Ownership Housing
13
ListofPPPModels
PPPModelsonGovt.land
Bidparameter:Perunitcost(lowestEMIorlowestlumpsum) Fixed Parameters: Predetermined number of units, area, time and specifications
Land Identification
Land Procurement
Land Provisioning
Preparation of Technical Guidelines
Beneficiary Identification
Housing Units rented to beneficiary.
Beneficiary to pay rent to private
developer
Call for Bid Selection/Empanelment
of Private Developer Construction of Housing Project
Handover Dwelling Units used for Rental Purpose
By Public Authority (PA)
By Beneficiary
By Private Developer
Difference from last Model
Maintenance of the Property
Bid Parameters: Per Unit Cost (Lowest Rent)
Ac;vityFlowchart
Model 6 – Direct Relationship Rental Housing
Fixed Parameters: Predetermined number of units, area, time and specifications
ProjectStructureModel 6 – Direct Relationship Rental Housing
PublicAuthority
PrivateDeveloper Beneficiaries
Maintainhousingunit
• Design,buildandfinancehousingunits
• Transferhousingunit
• Seteligibilitycriteriaforbeneficiaries
• Handoverhousingunit
• Preparetechnicalguidelines• TransparentSelecEon/
Empanelmentofdeveloper• Providelandfordevelopment
• Paymonthlyrentamount
15
ListofPPPModels
PPPModelsonGovt.land
Bidparameter:Perunitcost(lowestRent) Fixed Parameters: Predetermined number of units, area, time and specifications
Land Provided by Developer
Land Assessment by PA
Land Provisioning
Preparation of Technical Guidelines
Beneficiary Identification
Handover of Housing Unit to Beneficiary by
Developer
Financial Incentives, Subsidies & Stamp Duty Exemptions by PA
Designing & Construction of Housing Project by Developer
By Public Authority (PA)
By Beneficiary
By Private Developer
Maintenance of the Property by Beneficiary
Beneficiary to pay a predetermined amount (Lump sum/ EMI) to Developer
Model A - Private-land based Subsidized Housing (Taking advantage of CLSS) Ac;vityFlowchart
Model A - Private-land based Subsidized Housing (Taking advantage of CLSS)
State/PublicAuthority
PrivateDeveloper
Beneficiaries(EWS/LIG)
FinancialInsEtuEons
Providesubsidizedloan*
Repaytheloan
Maintainhousingunit
• TechnicalguidelinesasperPMAY• ProvideexempEonsand
financialincenEves• Providesinglewindowclearance
PayEMI/Lump-sumamount
• Facilitate&organisebeneficiariesselecEonintunewitheligibilitycriteriaofPMAY(U)
• OrganisemeetbetweenBankers,Beneficiaries&Builders
• Monitorphysicalandfinancialprogressofproject
InterestSubvenEon
MonthlyreporEngCentralNodalAgency
(NHB/HUDCO)
LandtobeprovidedbyprivatedeveloperDesign,build,financeandtransferhousingunits
ProjectStructure
*CLSSbenefitswillbeavailabletoEWS,LIGandMIGbeneficiariesasperthePMAY(U)Guidelines. 17
ListofPPPModels
PPPModelsonGovt.land
PPPModelsonPvt.Land
Land Provided by Developer
Land Assessment by PA
Land Provisioning
Preparation of Technical Guidelines
& Rs 1.5 Lac assistance from Central Govt.
Beneficiary Identification
Handover of Housing Unit to Beneficiary by
Developer
Financial Incentives, Subsidies & Stamp Duty Exemptions by PA
Designing & Construction of Housing Project by Developer
By Public Authority (PA)
By Beneficiary
By Private Developer
Maintenance of the Property by Beneficiary
Beneficiary to pay a predetermined amount (Lump sum/ EMI) to Developer
Model B - Private-land Based Subsidized Housing (AHP Scheme for EWS) Ac;vityFlowchart
ProjectStructureModel B - Private-land Based Subsidized Housing (AHP Scheme for EWS)
State/PublicAuthority
PrivateDeveloper
Beneficiaries(EWS)
FinancialInsEtuEons
ProvideloanRepaytheloan
Maintainhousingunit
• TechnicalguidelinesasperPMAY• TransparentSelecEon/Empanelmentof
developer• ProvideexempEonsand
financialincenEves• Providesinglewindowclearance
PayEMI/Lump-sumamount
CentralGovt.
Provide1.5lacperEWShousecapitalsubsidy*
*Assistanceprovidedonlyifatleast35%ofthehousesintheprojectareforEWScategory.TheStateGovernmentshallgiveaguaranteetotheCentralGovernmentthatthe1.5lacsubsidywillbeusedonlyforAHPandincaseofdefault,thereshallbetotalreimbursementofthesamealongwithinterest.
• Fixsalepriceofdwellingunit• Facilitate&organisebeneficiariesselecEonintune
witheligibilitycriteriaofPMAY(U);organisemeetbetweenBankers,Beneficiaries&Builders
• Monitorphysicalandfinancialprogressofproject
19
ListofPPPModels
PPPModelsonGovt.land
PPPModelsonPvt.Land
20
PublicAuthoriEesRole
Exemp;ons/Concessions• StampdutyexempEons
• External/InternalDevelopmentCharges(EDC/IDC)concessions
• CertainpercentageofpermissibleFAR/FSImaybemadefreeforprovisionofamenity/commercialdevelopment
FinancialIncen;ves• StateSubsidy
• InfrastructureStatus
• BenefitofSecEon80IBAofITAct1961**
• ReducedfeeandchargesforusageofinnovaEve/alternate/prefabtechnologiesandmaterials
SingleWindowClearance*• Provisionoftypedesignsfor
EWS/LIG/MIGunitsasperlocalclimaEccondiEons
• Provisionoffasttrackapprovalwithin30daysandthereupondeemedapprovaltosuchprojects
*IntheonlineprocessofbuildingplansancPoning,anopPonmaybecreatedforthedevelopertogetsinglewindowclearanceandotherincenPves,throughautomaPcroute,asprescribedinthePMAYguidelines.ThiswillalsoenabletheStatesinidenPfyingaPMAY(U)projectandcreaPngadatabaseofthesame.Inturn,itwouldalsohelpinbrandingthescheme.
**ForModelB-Private-landBasedSubsidizedHousing(AHPSchemeforEWS),theinfrastructurestatusbenefitunderSec80IBAofITAct1961willbeapplicableonlyiftheprojecthas50%ofFAR/FSIdedicatedtodwellingunitsofminimum60sq.m.carpetarea.Therefore,apartfrom35%ofhousesforEWS,theprojectwouldberequiredtoconstructremainingpercentofFARineithertheEWS/LIGcategorytoqualifyfortheabovebenefits.
Forsuchprojects,acombinaPonofModelAandBcanalsobeworkedout.
Back
21
THANK YOU!
KeyfeaturesofGuidelinesforPPPonprivateland
§ ForModelB(AHPschemeforEWS):TheexisEnginsEtuEonalmechanismofSLSMCasperPara16.4(forapprovalofprojects)andSLACasperPara16.6(fortechno-economic appraisal of DPRs submihed by ULBs/ ImplemenEng Agencies) of thePMAY(U)GuidelineswillconEnuetoaccordapprovaltoDPRs.
22
BeneficiaryIden;fica;on
§ InModelA(takingadvantageofCLSS)thebanks,extendingloanstotheapplicantsasperthePMAY(U)Guidelines,facilitatedbythepublicauthoritywillestablishtheeligibilityofbeneficiaries.
§ InModelB (AHP scheme for EWS), allotmentof houses to idenEfiedeligible EWSbeneficiariesinAHPprojectsshouldbemade,followingatransparentprocedureasapprovedbySLSMC,andbeneficiariesselectedshouldbepartofHFAPoA.
Ins;tu;onalMechanism
FixingSalePriceofDU§ ForModel B (AHP scheme for EWS): The appropriate authority in State,which iscurrentlyfixingthesalepriceofAHPprojectspresentlybeingdevelopedwithULBs/parastatalsunderPMAY(U)Mission,wouldconEnuetodosointhismodelaswell.
§ For projects using a combinaEonofModel A andB: As per SchemeGuidelines, aprivatedevelopercandeterminethesalepriceofLIGorMIGunitsasamethodofcross-subsidisaEoninlieuofpricefixedforEWSunitsbyStateagency.