Value Capture Finance (VCF) for Delhi-Meerut regional rapid transit system corridor
Student name: Mr Rohit Ranjan
Guide: Prof. Manipadma Datta
Year of completion: 2018
Host Organisation: NCRTC
Supervisor (Host Organisation): Mr Rashid Ali Khan
Abstract: NCRTC implementing High Speed Rail Corridor in NCR region and any such infrastructure project are highly cost intensive which required a healthy long-term cash flow to make the project sustainable. The work carried out in this report consider the three source of potential revenue and studied further in details for the one model station i.e. Sahibabad for the first two sources (Objective) and for the third source, the international and domestic case studies has been discussed in detail and these sources are;
• Commercial development at station
• Commercial development at adjacent secondary building (around the station area)
• Land value capture instruments
For the first two objective report analyses the area available at each station through survey and Google maps and identified the commercial potential area which can be exploited and used for the property development inside and adjacent to the station (Max. 5-10 min walking distance from station). Further by benchmarking such property development with DMRC project gives us a clear picture to carried out such development project and the kind of development model possible. Finally Financial modeling of the proposed model by considering current rental values in the city and rent escalation potential are done which gives us the approx. revenue potential of each source. The third objective, international and domestic case studies has been discussed in detail about the instrument used in different similar project and based on domestic and international experiences, a learning has been pointed out for the Regional Rapid Transit System (RRTS).
Modalities of application of the above mentioned sources for generating resources. These may include:
• Target group
• Geographical area
• Activities
• Formalities to be completed before applying these instrument
• Competent authority to approve these instrument
The study for the estimation for revenue potential from above sources was initiated in 2011 and the same is required to be validated in view of current policy framework and real estate market conditions.
