Providing Affordable Housing through PPP mode

1. Providing Affordable Housing through PPP mode A presentation by Shri. M.D. Lele, Chief Planner, CIDCO, Navi Mumbai

2. Introduction Housing the poor Metro cities house a large percentage of migrant population with people living in either rented houses or in slums/squatters 48 % of the people in lower segment are currently staying in rented accommodation* Affordable housing options for weaker sections is need of the hour * - Tata Housing study

3. Overview of CIDCO’s past efforts In Navi Mumbai Estimated 18 lakh population Total formal housing stock - 2.18 lac units CIDCO - 55% and Private sector 45% CIDCO’s total housing stock - 50% towards housing the poor CIDCO’s focus on the EWS/LIG section, the most striking aspect Land as resource and system of cross-subsidy CIDCO constructed, BUDP scheme and DRS scheme - three major categories

4. BUDP Project Launched in early 80s Supply of serviced land to manage the problem of slums Securing long-term legal tenure Focus on incremental housing Option to construct as per their financial condition Provision of basic services with recovery Plot sizes and infrastructure based on ‘affordable costs’ Massive scale, spread over 6 nodes across Navi Mumbai 22,300 serviced sites/Dwelling units created Invoked enterprise of the citizen through design and construction on their own terms and financial conditions Overview of CIDCO’s past efforts

5. DRS Scheme DRS scheme - Public- Private partnership both in design and construction Layouts and Building design skills of 10 national level Architects were on display in 9 different nodes based on ‘organic chaos’ Equal number of private developers given opportunity to design and build housing schemes Layouts had heterogeneous and equal mix of LIG: MIG: HIG categories and together gave 6500 odd EWS/LIG units The entire scheme was ‘low-rise high density’, laying a valuable example of public-private partnership in Social housing Overview of CIDCO’s past efforts

6. Circa 1991 Reduced role of CIDCO Increased role of private sector Focus on EWS/LIG diluted Currently prices rising rapidly Provide many housing options Overview of CIDCO’s past efforts

7. Recent Housing Schemes Vastu-vihar Scheme - Celebration Scheme - Unnati Housing - Overview of CIDCO’s past efforts

8. Approach for future Mass Housing Schemes Rental Housing RPZ land model BSUP Project

9. Approach for future Mass Housing • An ambitious scheme of making available 50,000 houses (1/10th of the target for the Mumbai Metropolitan Region set by the State Government) in Navi Mumbai area over the span of next 10 years • The Corporation has currently on the drawing board schemes to construct approximately 12,500 tenements • Focus firmly on the weaker section and middle class

10. Approach for future Rental Housing • Corporation to construct housing complexes at strategic locations • Locations nearer railway stations and in comparatively lesser land price nodes to minimize travel costs and ensure lower rents • Dispensation already in place to recover the service charges, etc. in each node. • Receiving applications, maintaining database of applications, allot tenements on fair basis and recovering monthly rental charges is possible • Maintenance of buildings and recovery of rents, other charges to be outsourced to private agency • Ensure that assets created are sustainable • A pilot project of about 500 tenements is in the offing • This model thus attacks the root of the problem viz. affordability

11. Approach for future RPZ land model • GoM has acquired and transferred about 200 sqkm. land • Undulating lands are not acquired and today land acquisition is costly • 2000 ha. of lands lying in the RPZ are amenable to development in terms of favourable topography • Low intensity development feasible but high cost of infrastructure provision

12. Approach for future RPZ land model • Model - Developed plots with infrastructure given back to the land owners in-lieu of the raw land to be surrendered for re-organization • Developed plot area to vary from 15 - 25 percent based upon the locations of land parcels vis-à-vis road network • To bring about orderly development in terms of well organized land parcels having a certain threshold size

13. Approach for future BSUP Project • Tho’ Navi Mumbai is a planned effort, slums have come upin the city • To address the issue early, CIDCO has been appointed the project implementing authority under the BSUP project for construction of 13,600 dwelling units costing Rs. 300 crores (approx.) • Central Government Grant under the JnNURM scheme - Rs. 139.44 crores, GoM share - Rs. 80.42 crores and monetary contribution by beneficiaries ranging from 10-12% of the cost of tenements is expected

14. Approach for future BSUP Project • Solicit private sector participation • Obligatory on the part of the developers to handover free of cost 13,600 tenements in these pockets • The balance built-up area out of 2.5 FSI on the gross plot area shall be for sale essentially to EWS and LIG income people only (30 and 45 sqm. BUA only) • 15 to 25% of the permissible built-up area with 2.5 FSI could be utilized for commercial use – Viability of scheme

15. Alternatives • Land at fixed price, building plans, technology approved by CIDCO. 50% tenements to be handed over to CIDCO for disposal. Max FSI – 3.0 • Land at fixed price, building plans, technology approved by CIDCO. Instead of handing tenements, give premium. Max FSI – 3.0 • Land at market rate. Max FSI – 3.0, building plans, technology controlled by CIDCO

16. Other Alternatives • Private developers assigned residential plots >2000 sqm. to surrender BUA to CIDCO in form of EWS/LIG tenements • Private developers assigned residential plots >2000 sqm. To compulsorily construct EWS/LIG tenements • Developers to be compensated for surrendered part by allowing additional proportionate FSI • All inclusive housing on land at fixed price- • Free House Component (Rehab component) • Affordable houses (to be handed over to CIDCO at cost) • High priced housing (Developers component) • Selection on basis of maximum number offered for rehab

17. THANK YOU