Transcript
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1. INTRODUCTION
Home is where the heart is, and owning a house is a basic
human right. It is not only a luxury but also a necessity.
A strong economy causes an increase in the demand for housing; the
increased demand for housing drives real-estate prices and rentals
through the roof. And then affordable housing becomes completely
inaccessible. - William Baldwin
Indias cities need at least 25 millions more homes in year 2012,
according to report from McKinsey, a consultancy, and the Federation
of Indian Chambers of Commerce.
The reason for such a huge demand for housing is migration of mass
people from rural area towards urban area or cities for their livelihood.
Most of the persons who migrate belong to economically weaker
group, lower income group, and middle income group. Government
has recognized the need of owning a house and thus has formulated
the policy:-
AFFORDABLE HOUSING ON PUBLIC PRIVATE PARTNERSHIP
Affordable homes or affordable housing is set to encompass the low
budget houses by providing flats and apartments at a low cost. The
Government should also keep in mind that though flat is being made
available at a comparative lesser price, it should not lack in quality.
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RAJASTHAN
Total Population - 68,621,012*
Urban Population - 17,080,776*
Percentage of Urban Population - 24.89%*
(*Provisional figures of census of India 2011)
Projected total housing shortage in urban areas of Rajasthan by the
year 2021 is estimated to be 17.06 lacs Out of this more than 85%
shortage is likely to be in the category of EWS/LIG Housing. Therefore
shortage of affordable housing is emerging as a major challenge for
Government of Rajasthan.
JODHPUR
Total Population -36, 85,681*
Urban Population -12, 64,060*
Percentage of Urban Population -34.30%*
Proportion to Rajasthan Population -5.37% *
(*Provisional figures of census of India 2011)
To meet the requirement of Affordable Housing in second largest city
of state (JODHPUR) for the urban population, the Government of
Rajasthan formulated the policy:-
AFFORDABLE HOUSING POLICY 2009MODEL NO. 2
The main objective of the policy is to provide Affordable houses to
EWS/LIG/MIG category of the urban society. Public PrivatePartnership(PPP) model is used for faster implement of the policy.
In this report I focused on the following points:-
1.Public Private Partnership (PPP).2.Affordable Housing.3.An Overview on Affordable Housing Policy 2009
Model No. 2.
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While its size and growth potential make India attractive as a market,
the most compelling reason for investors to be in India is that it
provides a high Return on Investment. India is a free market
democracy with a legal and regulatory framework that rewards free
enterprise, entrepreneurship and risk taking.
While the India growth story is often plugged as the saga of corporate
enterprise and innovation, the governments contribution to its making
remains largely unsung. Be it in the form of policy reforms or
development of infrastructure, the government, both at the central
and the state levels, has been working in tandem to make India the
second most attractive investment destination in the world. The state
governments have already embarked on a war path to make their
respective states investment friendly.
They are on a three-point agenda:
Providing basic infrastructure and encourage private sectorparticipation in infrastructure provision.
Providing policy stability to businesses to encourage investment andgrowth.
Creating employment opportunities by developing the services sector.Each state has its own strengths for the potential investor. While West
Bengal has surplus electricity, Tamil Nadu is considered one of the
most developed states in the country. The latter is also known for
having the fastest growth rate in software exports 700 per cent
from 1998 to 2001. Haryana, which has the fourth highest per capita
income in India, produces half of the cars and two-wheelers produced
in India, while Goas economy is based on tourism. Rajasthan turning
the fortune by rapid development in real state market and housing.
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3. PUBLIC PRIVATE PARTNERSHIP
3.1 Overview
Public Private Partnerships offer a unique and innovative method of
involving the private sector in the nation building activity and in
accelerating the delivery of public goods and services of high quality
through joint enterprises, without spreading the limited available
resources too thin. The Eleventh Five Year Plan has estimated that in
order to sustain the envisaged high annual growth rate, the
investments in the infrastructure sector will have to be of massive
proportions. It would be impossible for the public sector to meet such
huge commitments in view of its limited capability for additional
capital mobilization. The anticipated shortfall of at least 30 percent of
the estimated total plan requirements, which itself will be of a huge
magnitude will have to be met by seeking active private sector
involvement in the development of the infrastructure sector. Public
Private Partnership (PPP) will be an attractive option in meeting this
challenge.
Private sector participation in infrastructure development is not,
however, a simple matter. It requires a framework that can enable theprivate sector to secure a reasonable return at manageable risk,
assure the user of adequate service quality at an affordable cost, and
facilitate the Government in procuring value for public money. These
conditions are more difficult to fulfill than is commonly realized.
Because of multiple stakeholders pursuing conflicting interests, risk
mitigation arrangements are usually complex. Inadequate preparatory
work in relation to the framework for PPP projects, identification of
projects, selection of private participants, preparation of strategic planand project reports, drafting of contracts and other associated
activities will only lead to excessive transaction costs, years of delay in
project implementation, inadequate quality, and large contingent
liabilities to the Government. A project beset with such problems even
after completion can get enmeshed in a high cost low demand
syndrome.
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3.2 Definition Public Private Partnership
The Government of India defines PPPs as:
A partnership between a public sector entity (sponsoring authority)
and a private sector entity (a legal entity in which 51% or more of
equity is with the private partner/s) for the creation and/or
management of infrastructure for public purpose for a specified period
of time (concession period) on commercial terms and in which the
private partner has been procured through a transparent and open
procurement system. (Department of Economic Affairs, Ministry of
Finance, Government of India, 2007a)
"The Public-Private Partnership (PPP) Project means a project
based on contract or concession agreement between a
Government or statutory entity on the one side and a private
sector company on the other side, for delivering an
infrastructure service on payment of user charges."
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3.3 What is Public-Private Partnership (PPP)?
PPP is a broad term that can be applied to anything from a simple,
short term management contract (with or without investment
requirements) to a long-term contract that includes funding, planning,
building, operation, maintenance and divestiture. PPP arrangements
are useful for large projects that require highly-skilled workers and a
significant cash outlay to get started. They are also useful in countries
that require the state to legally own any infrastructure that serves the
public.
The public partners in a PPP are government entities, including
ministries, departments, municipalities, or state-owned enterprises.
The private partners can be local or international and may include
businesses or investors with technical or financial expertise relevant to
the project. Increasingly, PPPs may also include nongovernment
organizations (NGOs) and/or community-based organizations (CBOs)
who represent stakeholders directly affected by the project.
Effective PPPs recognize that the public and the private sectors each
have certain advantages, relative to the other, in performing specific
tasks. The government's contribution to a PPP may take the form of
capital for investment (available through tax revenue), a transfer of
assets, or other commitments or in-kind contributions that support the
partnership.
The government also provides social responsibility, environmental
awareness, local knowledge, and an ability to mobilize political
support. The private sector's role in the partnership is to make use of
its expertise in commerce, management, operations, and innovation
to run the business efficiently. The private partner may also contribute
investment capital depending on the form of contract. The structure of
the partnership should be designed to allocate risks to the partners
who are best able to manage those risks and thus minimize costs
while improving performance.
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In some types of PPP, the government uses tax revenue to provide
capital for investment, with operations run jointly with the private
sector or under contract. In other types (notably the private finance
initiative), capital investment is made by the private sector on the
strength of a contract with government to provide agreed services.
Government contributions to a PPP may also be in kind (notably the
transfer of existing assets). In projects that are aimed at creating
public goods like in the infrastructure sector, the government may
provide a capital subsidy in the form of a one-time grant, so as to
make it more attractive to the private investors. In some other cases,
the government may support the project by providing revenue
subsidies, including tax breaks or by providing guaranteed annual
revenues for a fixed period.
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Typically, a private sector consortium forms a special company called
a special purpose vehicle (SPV) to develop, build, maintain and
operate the asset for the contracted period. In cases where the
government has invested in the project, it is typically (but not always)
allotted an equity share in the SPV. The consortium is usually made up
of a building contractor, a maintenance company and bank lender(s).
It is the SPV that signs the contract with the government and with
subcontractors to build the facility and then maintain it. In the
infrastructure sector, complex arrangements and contracts that
guarantee and secure the cash flows, make PPP projects prime
candidates for Project financing. A typical PPP example would be a
hospital building financed and constructed by a private developer and
then leased to the hospital authority. The private developer then acts
as landlord, providing housekeeping and other non medical services
while the hospital itself provides medical services.
PPPs can only be mainstreamed by continuous response to the varying
goal of people and economy in general. The boundary domains of PPPs
should be increased in order to prosper the infrastructure
development of India.
Government of Indias globalmanufacturing & trading hub, issupported by world classinfrastructure through PublicPrivate Partnership. DMIC* is
reported to have IntegratedIndustrial Areas & InvestmentRegions developed from 2008 to2016. Mott MacDonald is workingwith Gujarat state on this projectpreparing reports for Bharuch-Dahej Investment Region andVadodara Ankleshwar &Palanpur Mehsana Industrialareas.
Example of Public Private Partnership *Delhi Mumbai Industrial Corridor (DMIC).
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3.4 Why Public-Private Partnership (PPP)
Sufficient instruments as well as the ability to undertake long-termequity cannot be provided by the market in the present financial
scenario. Also financial liability required by infrastructure projectswould not be sufficed.
Most sectors face a lot of hindrance in enabling a regulatoryframework as well as a consolidated policy. So its important to
convert such policies into PPP friendly. To achieve the desires results,
active participation of various state projects are essential.
Lack of ability of private sectors to fit into the risk of investing indiversified projects also needs to be overcome. Modernization of new
airports, transmission systems and building power generating plants
are some of the avenues which required skilled manpower.
Ability of public institutions to manage the PPP process should alsobe subdued. Maximizing the return of the stakeholders needs to be
managed due to the involvement of long term deals including the life
cycle of the asset infrastructure.
Lack of credibility of bankable infrastructure projects used forfinancing the private sector should also be overcome. Inconsistency is
still visible in the limitations of PPP projects, despite of continued
initiatives by States and Central ministries.
Inadequate support to enable greater acceptance of PPPs by thestakeholders forms another source of constraint.
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3.5 Public-Private Partnership (PPP) Types
1. Built, Operate and Transfer (BOT)
Under this category, the private partner is responsible to design,
build, operate (during the contracted period) and transfer back thefacility to the public sector. The private sector partner is expected to
bring the finance for the project and take the responsibility to
construct and maintain it. The public sector will either pay a rent for
using the facility or allow it to collect revenue from the users. The
national highway projects contracted out by NHAI* under PPP mode
is an example. (*NHAI National Highway Authority of India)
2. Lease, Operate and Transfer (LOT)
As the name indicates, under this type of PPPs, a facility which
already exists and is under operation, is entrusted to the private
sector partner for efficient operation, subject to the terms and
conditions decided by mutual agreement. The contract will be for a
given but sufficiently long period and the asset will be transferred
back to the government at the end of the contract. Leasing a school
building or a hospital to the private sector along with the staff and allfacilities by entrusting the management and control, subject to pre-
determined conditions could come under this category.
3. Built, Own, Operate (BOO)
This is a variation of the BOT model, except that the ownership of the
newly built facility will rest with the private party during the period of
contract. This will result in the transfer of most of the risks related toplanning, design, construction and operation of the project to the
private partner. The public sector partner will however contract to
purchase the goods and services produced by the project on
mutually agreed terms and conditions. However, the facility/project
built under PPP will be transferred back to the government
department or agency at the end of the contract period, generally at
the residual value and after the private partner recovers its
investment and reasonable return agreed to as per the contract.
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4. Design, Built, Finance and Operate (DBFO)
These are other variations of PPP and as the nomenclatures highlight,
the private party assumes the entire responsibility for the design,construct, finance, and operate or operate and maintain the project
for the period of concession. These are also referred to as
Concessions. The private participant to the project will recover its
investment and return on investments (ROI) through the concessions
granted or through annuity payments etc. It may be noted that most
of the project risks related to the design, financing and construction
would stand transferred to the private partner. The public sector may
provide guarantees to financing agencies, help with the acquisition ofland and assist to obtain statutory and environmental clearances and
approvals and also assure a reasonable return as per established
norms or industry practice etc., throughout the period of concession.
5. Operations Concession
This is a generic term, used to clarify the essential features of PPP
arrangements. The PPP agreements which authorize the privatepartner to recover its investments and expected returns on
investments through concessions granted for a certain period,
computed on the basis of demand projections and growth, and are
called operations concession (OC). In these cases, the public sector
which is responsible to provide the service to the public and collect
revenue by way of user charges, toll, tariff etc., assigns its legal or
statutory right to the private partner in return for the latter
undertaking the responsibility to implement the project and maintainthe required quality. The concession may be by collecting tolls and
user charges or by the public sector making periodical payments of
annuities or monthly/quarterly/half-yearly charges on certain
assumed basis, like shadow tolls etc.
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6. Joint Ventures
In a PPP arrangement commonly followed in our country (such as for
airport development), the private sector body is encouraged to form
a joint venture company (JVC) along with the participating publicsector agency with the latter holding only minority shares. The
private sector body will be responsible for the design; construction
and management of the operations targeted for the PPP and will also
bring in most of the investment requirements. The public sector
partners contribution will be by way of fixed assets at a pre-
determined value, whether it is land, buildings or facilities and /or it
may contribute to the shareholding capital. It may also provide
assurances and guarantees required by the private partner to raisefunds and to ensure smooth construction and operation. The public
service for which the joint venture is established will be provided by
the entity on certain pre-set conditions and subject to the required
quality parameters and specifications. Examples are international
airports (Hyderabad and Bangalore), ports etc.
Development of Roads through Public Private Partnership
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3.6 Main Features of PPPs:
1. Cooperative and contractual relationships:
PPPs represent cooperation between the government and the private
sector. PPPs are not the same as privatization in that both public
sponsors and private providers function as partners throughout project
development and delivery, and often in operation and maintenance.
The most successful partnership arrangements draw on the relative
strengths of both the public and private sector in order to establish
complementary relationships between them.PPP arrangements are
long-term in nature, typically extending over a 15 to 30 year period.This is a factor which helps to which establish productive and lasting
relations between the public and private sectors. Demonstrating an
enduring public sector commitment to the provision of quality services
to consumers, under terms and conditions agreeable to both the
government and the private sector, PPPs are used to develop and
operate public utilities and infrastructure. These collaborative ventures
are built around the expertise and capacity of the project partners and
are based on a contractual agreement, which ensures appropriate andmutually agreed allocation of resources, risks, and returns
2. Shared responsibilities:
While the specific responsibilities for delivery will vary according to
each project, a key feature of PPPs is that these responsibilities will be
shared between the public body and the private consortium. In some
initiatives, this might require the private sector company to play a
significant role in all aspects of delivery of the service, while in others
its functions may be more limited. However, unlike instances of
privatization, the overall role of government remains unchanged in a
PPP: it is the government which remains ultimately accountable and
responsible for the provision of high quality services that meet the
public need.
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3. A method of procurement:
PPPs are instruments for government bodies to deliver desired
outcomes to the public sector, by making use of private sector capital
to finance the necessary assets or infrastructure. The private companyis rewarded for its investment in the form of either service charges
from the public body, revenues from the project, or a combination of
the two. This renders affordable those projects that might not
otherwise have been feasible, because the public body was unwilling
or unable to borrow the requisite capital. PPPs allow the private sector
to play a greater role in the planning, finance, design, operation and
maintenance of public infrastructure and services than under
traditional public procurement models. Moreover, where traditionalprocurement models begin with the question of what assets the public
body has as its disposal and how these might be used to deliver
required services, PPP arrangements place the emphasis on the
desired service or outcome as identified by the public organization and
how the private sector might help to make this happen.
4. Risk Transfer:
A key element of PPPs is their potential to deliver public projects and
services in a more economically efficient manner. At the beginning of
the relationship, potential risks associated with the project are
identified and each party adopts those which it is best equipped to
manage.
The public sector can therefore transfer appropriate risks to the
private partner, who has the necessary skills and experience to
manage them.For example, overall risk to the public sector can be reduced by
transferring those associated with design, construction and operation
to the private partner. The incentive for the private body comes in the
form of higher rates of return related to high standards of
performance.
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5. Flexible Ownership:
PPPs enable flexible arrangements between public and private bodies,
where the public body may or may not retain ownership of the projector facility that is produced. In some cases, the private organization
may be contracted only to construct facilities or supply equipment,
leaving the public body as owners, operators and maintainers of the
service. Alternatively, the public sector may decide it is more cost-
effective not to own directly and operate assets, but to purchase these
instead from the private entity. Services may be purchased for use by
the government itself, as an input to provide another service, or on
behalf of the end user.
Fast Growth in Agriculture Sector by Implementing PPP
Public
Private
Partnership
PPP
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3.7 Strengths & Weaknesses of PPP
A. Strengths:The major strength of PPPs is their ability to deliver value for money in
public service procurement and operation. By utilizing the differing
skills, resources and experience of each party, they allow the publicand private sectors to complement each other the public sector
provides its expertise in identifying public needs, service requirements
and desired outcomes, and the private sector brings its capacity to
effectively utilize assets and manage the construction and operation of
services.
1.Benefits to the public sector:The foremost benefit of PPPs, alluded to above, is the scope such
partnerships allow for public authorities to raise capital for high
priority works that might otherwise not be possible in the face of
budgetary and borrowing constraints. Here, PPPs can draw on private
sector expertise in order to deliver services and infrastructure
efficiently and cost-effectively, and to bridge the gap between the
resources required and those available from the public purse.
Gains in efficiency and effectiveness can be realized in a number ofways. Most importantly, the PPP approach encourages private sector
innovation by allowing government to delegate responsibility for
service design and construction to the private contractor. This enables
the public body to identify desired services, outcomes and outputs,
while allowing room for the private contractor to innovate in the
search for the most appropriate solution to meet those requirements.
Additionally, PPPs can enable the optimum allocation of public
resources in the pursuit of infrastructural development. Whereastraditional models of public procurement focus on achieving the lowest
upfront costs in delivering infrastructural projects PPPs concentrate on
delivering cost effectiveness over the duration of the asset including,
in particular, those costs associated with operation and ongoing
maintenance. This allows the public sector to realize value for money
for the entire life of the project or service, rather than just in its initial
construction phase.
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2.Benefits to the private sector:Engaging in PPPs offers private sector companies a wide range of
business opportunities that were previously confined to public
agencies. Given the long term nature of these relationships,undertaking work under PPP arrangements provides a stable
foundation for the growth of the business. In addition, PPP
arrangements encourage the private sector to engage in a broader
spectrum of activities, throwing open the possibility of designing and
delivering innovative solutions, rather than merely constructing assets
to existing standards and designs.
3.Benefits to the public:By combining the skills and expertise of public and private partners,
PPPs are able to provide services which meet the needs of the public
in a more efficient and cost-effective manner. When appropriately
designed and implemented, PPPs can yield better quality services
without compromising public policy objectives or broader public need.
At the outset of the PPP relationship, the desired quality of service to
be achieved from the development of the infrastructural asset isclearly specified, and the expectation is that high standards will be
maintained throughout the duration of the project. This contrasts with
traditional procurement methods, where the construction of assets is
formally separated from operation and maintenance, and
consequently, levels of service and conditions of assets will frequently
decline over time.
Development of country through Public Private Partnership
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B.Weaknesses (and risks):PPPs, like conventional service delivery mechanisms, also have
disadvantages and drawbacks. In order to minimize or eliminate
these, it is vital that public sector managers recognize and understandthem in order to better address problems as they arise, through
careful contractual arrangements and negotiations.
1.There is the possibility that the public sector may lose managerialcontrol of its services. Under PPPs, the management of outputs is
transferred to the private sector, meaning that the public sector has
very limited ability to intervene, as long as services are being
delivered. The public body has no day-to-day control over themanagement of the project and is reduced in its capacity to change
the project or cooperate with wider public sector services, and indeed
may not be able to make use of its own expertise in the area.
2.The process of PPP procurement can be time consuming andexpensive. In order for a PPP to be successfully realized, it is vital that
before bidding starts, a detailed, clearly structured project appraisal
and specification of desired outputs is drawn up. Although this isimportant to the development of projects that are affordable and
provide value for money, it has the potential to make procurement a
lengthy and costly procedure.
3.There is the problem of the higher cost of finance in the privatesector. The weighted cost of finance in the private sector, including
both debt and equity, is typically between 1% and 3% higher than the
public sectors cost of debt on a non- risk adjusted basis. This has theeffect of increasing the overall cost of PPP in comparison to traditional
procurement methods, unless this can be offset by the increased cost
efficiencies that the private sector should deliver.
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4.PPPs can sometimes prove to be rather inflexible instruments especially given the long term nature of most PPP contracts. While
there can be significant financial benefits in setting rigidly defined
output specifications for the life of the PPP, these should be weighedagainst the inflexibility this inevitably brings. Under PPP
arrangements, there is limited potential for modifying services or
flexible spending. Certain sectors of service provision may require a
much greater degree of flexibility and in these cases, an approach
which makes use of long-term rigid specifications of outputs may
prove difficult or counterproductive.
5.In some areas of public service provision there may be greaterpublic demand for accountability and responsiveness than in others.
This may give rise to public criticism or even hostility towards PPP
arrangements. Moreover, under PPP arrangements, lines of
accountability can be less straightforward (and transparent) than
under traditional methods of procurement where lines of
accountability (for example, to government ministers) are more direct
and immediate. In these circumstances, there may be a need for
greater government involvement in the relationship, to ensurecompliance and responsiveness to public concerns.
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4. NINE GLOBE INDUSTRIES PVT. LTD.
Registered OfficeNINE GLOBE INDUSTRIES PVT. LTD.A-402, Prathmesh Tower,
Raghuvansi Mill Compound,Senapati Bapat Marg,Mumbai 400 013 (India)Tel : (+91 22) 2494 5252Fax : (+91 22) 2496 5252Email: admin@nineglobe.com
Corporate officeNINE GLOBE INDUSTRIES PVT. LTD.1st Floor ,113,Machar Tower
1st B Road SardarpuraJodhpur 342003 (India)Tel : (+91 291) 2645774
4.1 Company Overview
Nine Globe Industries Pvt. Ltd. is a customerdriven Indian
company with a reputation for innovation, quality, speed and flexibility
backed by three decade old rich experience and vision of its
promoters. Companys business is spread globally, but is principally
operated from and is located in India, one of the fastest growing large
economies in the world.
Nine Globe Industries Pvt. Ltd. is an exceptional diversified companywith a world class resource and product base and strong foothold in
the areas ofReal Estate, Mining, Metals and Exports.
Company believes in expertise and experience of global operations
will complement operations and expansion of its businesses in India
and will allow company to capitalize on attractive growth opportunities
arising from India's developing economy, relatively low cost of
operations and large and inexpensive labour and talent pools.
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Efforts are always on to identify new markets, varying customer/
country requirements, understand their social & cultural patterns,
develop and design new products to suit their specific requirements.
With these guiding principles Nine Globe is poised for an excitingjourney in this new millennium.
MissionMission is to aim for excellence in every field we enter and work in and
to create sustainable high growth businesses and win-win situations
for the company and our partners.
ValuesEntrepreneurship
We encourage an entrepreneurial spirit throughout our businesses and
value the ability to foresee business opportunities early in the cycle
and act on them swiftly. Our ability to translate an idea into reality
within the shortest possible timeframe is critical to our rapid growth
and diversification into new areas. People are our most important
asset and from day one we actively encourage them to seek newopportunities and pursue their goals.
Growth
We have pursued growth across all our businesses and into new
areas; always on the basis that value must be delivered. We do not
believe that we are the only beneficiary of our growth. We see growth
as a means to increase the wealth and prosperity of our society at
large.
Excellence
Achieving excellence in all that we do is our way of life. We
consistently deliver projects ahead of time at industry-leading costs
and within budget. Equally important to us is achieving benchmarks in
health, safety and environment standards. It is our people who make
all this possible. They benchmark our operations and identify
opportunities for continuous improvement and projects with highpotential.
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Integrity
Total honesty, transparency and accountability are virtues deeply
embedded in all our activities. These values have earned credibility
for the company and loyalty from its partners/clients.
TrustThe trust that our partners/clients place in us is key to our success.
We recognize that we must responsibly deliver on the promises we
make to earn that trust. We constantly strive to meet their
expectations of us and deliver ahead of expectations. We always
behave in a manner that is consistent and upholds our value system.
We take feedback seriously and act upon it. We continuously work to
improve ourselves and enhance our ability to deliver at all times. We
actively foster a culture of mutual trust in our interactions with ourstakeholders and encourage an open dialogue which ensures mutual
respect. We believe that this is part of being a good corporate citizen.
Team Spirit
None of us is as good as all of us together. When we work in synergy
complementing each other in a spirit of partnership, our strengths are
not added but multiplied resulting in optimum output.
Nine Globe Industries Pvt. Ltd. has a team of professionally
skilled workforce that ensures the highest standards of quality
and timely schedules to fulfill the need of global market.
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5. AFFORDABLE HOUSING INJODHPUR
Nine Globe Groups vision of Higher Focused Development extends toits social responsibilities, to society and the community at large to
create a better life for its brethren in society through this project of
providing mass and affordable housing to people of Jodhpur city. With
the nodal agency (Avas Vikas Ltd., Jaipur, Rajasthan) Nine Globe
Industries Pvt. Ltd. is coming with housing scheme of
EWS/LIG/MIG-A flats, Model No.2 in City Of Jodhpur, Rajasthan
on Public Private Partnership with Government of Rajasthan
under :-Affordable Housing Policy 2009 Model No. 2.
EWS/LIG/MIG-A flats (G+2/G+3 formats) are to be constructed on
minimum 52% of the Total Land. Built up EWS/LIG/MIG-A flats to be
handed over to nodal agency i.e. Avas Vikas Ltd. at predetermined
prices which in turn will be allotted to the eligible beneficiaries.
EWS Economically Weaker Section.
LIG Lower Income Group.
MIG - Middle Income Group.
G+2 - Ground Floor + 2 Floors.
G+3 - Ground Floor + 3 Floors.
Nine Globe takes pride in announcing the affordable housing scheme
(EWS, LIG, MIG-A) for the ones deprived of comfortable livelihood due
to the ever escalating cost of living. With the Governments
openhanded affirmative nod, the company is elated to fulfill not only
the dreams of the underprivileged but also to accomplish the
companys goal of working towards a more developed and disparity
free society. With the initiation in areas like SURPURA and
RALAWAS in Jodhpur, the companys idea is to soar high with
improvement in the infrastructure sector throughout India.
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AFFORDABLE HOUSING EWS/LIG/MIGJODHPUR, RAJASTHAN
(EWS Economically Weaker Section, LIG - Lower Income Group)
(MIG Middle Income Group)
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6. AFFORDABLE HOUSING
6.1 Overview
Right to adequate housing is a basic human right as shelter is a basic
human need. Provision of adequate housing is emerging as a major thrust
area for Government of India as well as the State Governments.Government of Rajasthan accords a very high priority to this task. With
all round increase in cost of land, building materials, labour and
infrastructure, affordable housing has become a distant dream for the
economically weaker and low income groups. Hence the role and
intervention of the State Government becomes all the more important.
Sustainable human development can not be achieved without adequate &
affordable housing. Affordable shelter for the masses or creation of
productive and responsive housing for all is not a simple technologicalissue or a mere problem of the finance. It is a complex amalgam of a host
of factors, which need to be tackled at all levels and in a synchronized
manner.
3-D view of affordable housing at Surpura, Jodhpur, Rajasthan
The goal to provide affordable housing to the needy has an economic and
social significance. Rajasthan has the largest area in the country which is
10.41% of the country's area. As per the 2011 census, urban population
in Rajasthan is 27.89%* whereas the national average is 29.78%*.
(*Provisional figures of census of India 2011)
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At the National level total housing shortage in urban sector as estimated
in 2012 is 25 million*, out of which over 90 percent shortage is of
EWS/LIG housing. In Rajasthan total housing shortage in urban sector as
estimated in 2011 is 1.07 million, (10.70 lacs), out of which 86.73
percent (9.3. lacs) is in EWS/LIG category.
Due to rapid pace of urbanization, increasing rural to urban migration and
gap between demand and supply, there is a growing requirement for
shelter and related infrastructure in urban areas of Rajasthan. Projected
total housing shortage in urban areas of Rajasthan in the year, 2012,
2017 and 2021 is estimated to be 1.282 million, (12.82lacs) 1.494 million
(14.94 lacs) and 1.706 million, (17.06 lacs) respectively. Out of this more
than 85% shortage is likely to be in the category of EWS/LIG Housing.Therefore shortage of affordable housing is emerging as a major
challenge for the government and is sought to be tackled through a series
of measures and policy guidelines set down for this purpose.
"Affordable housing for all and integrated habitat development
with a view to ensure equitable supply of land, shelter and services at
affordable prices in Rajasthan, with special focus on urban poor and
excluded groups of society".
In JODHPUR affordable housing is developed by Nine Globe
Industries Pvt. Ltd. and Government of Rajasthan on Public
Private Partnership.
The affordable housing scheme (EWS, LIG, MIG-A) for the ones deprived
of comfortable livelihood due to the ever escalating cost of living.
Affordable housing is developed at two sites in jodhpur:-
1. SURPURA2. RALAWAS
(*report from McKinsey, a consultancy, and the Federation of Indian
Chambers of Commerce)
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6.2 DEFINITION OF AFFORDABLE HOUSES
Keeping in mind that the housing shortages affect mostly the EWS
and LIG, and the younger group of urban-urban migrants changing cities
in search of better prospects, affordable houses, for the purpose of this
scheme, may be taken as houses ranging from about 300 square feet
(super built up area) for EWS, 500 square feet for LIG and 600 square
feet to 1200 square feet for MIG, at costs that permit repayment of
home loans in monthly installments not exceeding 30% to 40% of
the monthly income of the buyer. In terms of carpet area, an
EWS category house would be taken as having a minimum 25
square meters of carpet area and the carpet area of an LIG category
house would be limited to a maximum of 48 square meters. The
carpet area of an MIG house would be limited to a maximum of 80
square meters.
(According to Government of India Ministry of Housing & Urban Poverty
Alleviation)
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7.AFFORDABLE HOUSING POLICY 2009MODEL NO. 2
PRIVATE DEVELOPER ON PRIVATE LAND
(WITH INCENTIVES TO OFFSET LAND COST FOR EWS/LIG)
(i) Minimum 40% (maximum up to 100% of land area) land to
be earmarked for EWS/LIG & remaining land allowed for
MIG/HIG/commercial purposes
Under this model selected developers would take up construction work
of EWS/LIG houses/flats on minimum 40% of land under the project.
Out of the total EWS/LIG houses/flats, minimum 50% would be EWS
and balance could be LIG houses/flats. On the balance land the
developer would be allowed to construct MIG-A, MIG-B, HIG
houses/flats and 10% of this portion of the land would be permitted to
be used for commercial purpose.
The total built up EWS/LIG houses/flats will be handed over to the
nodal agency at pre-determined prices for allotment to the eligibleapplicants. On the balance land area with the developer, he will be
required to construct at least 20% (treating balance MIG& HIGH area
as 100%) of the area for MIG-A houses. The remaining area could be
used for MIG-B/HIGH/commercial purposes. The developer will be free
to sell the balance area on which MIG-A/MIG-B/ HIG/commercial
houses/flats are constructed, as per his choice. However for the MIG-
A category also applications would be invited by the nodal agency and
allotments made accordingly, at the sale price worked out jointly bythe developer & nodal agency.
EWS/LIG flats should be in the G+3 format(G+2 may also be allowed
in certain cases) while the MIG-A, MIG-B & HIG-H flats can be
constructed up to any height as per prevailing building regulations in
the town/city.
(EWS Economically Weaker Section, LIG - Lower Income Group)(MIG Middle Income Group, HIG Higher Income Group)
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(ii) Land use analysis
Roads -20 to 25%
Parks -10%
Amenities -10 to 15%
Ground Coverage
Residential
Maximum 50% for EWS/LIG plot area and 35% for
MIG/HIG/Commercial.
Commercial
5% additional (5% of minimum 40% reserved for EWS/LIG) in
EWS/LIG Plot area (10% in MIG/HIG Plot area which will be part of35% ground coverage allowed), in no case the overall commercial
area shall exceed 10% of total plot area.
(iii) Commercial area will be disposed off by developer and amenities
will be developed by him at his own level or with the involvement of
other agencies.
NotesA.The power to relax any of the norms mentioned above shall vest with
the State Government / Empowered committee.
B.The sides/rear setbacks on EWS/LIG plot area can be relaxed up tominimum 3.0 m by the local authority to achieve 50% ground
coverage.
C.Parking norms can also be relaxed suitably to achieve 50% GroundCoverage
(iv) Time allowed for completion of the project.
Time allowed for completion of the project would be as follows:-
EWS/LIG houses/flats 200 nos. - 01 year
EWS/LIG houses/flats 400 nos. - 02 years
EWS/LIG houses/flats 600 nos. & above - 03 years
(EWS Economically Weaker Section, LIG - Lower Income Group)
(MIG Middle Income Group, HIG Higher Income Group)
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(v) Additional FAR (Floor Area Ratio) to be allowed
For the minimum 40% (maximum up to 100% of land area) of land to
be utilized for EWS/LIG categories of houses/flats. The land and
development cost is to be taken as zero, therefore additional FAR
(double of the normal FAR for the area) would be allowed.
If EWS/LIG flats are constructed by developer on the minimum 40%
of total built up area (as per permissible FAR) he will get double of the
normal FAR on the full land of the scheme.
For example
If the plot area of the scheme is 10.0 acres, minimum 40% of the plot area i.e. 4.0
acres is to be reserved for construction of EWS/LIG category of flats & on this 4.0
acres of land, minimum 40% of the total permissible built up area (as per normal
permissible FAR) is to be constructed by the developer.
This built up area of EWS/LIG flats will be handed over to the nodal agency on
predetermined prices & in lieu of this the developer will get additional FAR
equivalent to normal FAR on the complete land area in addition to the already
permissible normal FAR, thus he gets double of the normal FAR on the complete
land area of 10.0 acres.
This additional FAR, if unutilized on the same project land, would be given in the
form of TDR, to be allowed in other parts of the town as per norms and guidelines
fixed in this regard.
(vi) Use of Transferable Development Rights (TDR) as a result
of additional FAR:-
Efforts should be made by developer to consume maximum FAR
(including additional FAR) on the same project land. If he is unable to
do so balance/unutilized FAR will be allowed to him in the form of
TDR, under separate guide lines approved by the State Government in
this regard, use of TDR will be allowed after successful completion of
the project. Allowable TDR should normally be in the same
sector/area/zone of master plan having more or less equivalent value
of land. However in case this is not feasible TDR will be allowed to be
transferred to other areas as per norms to be issued in this regard.
TDR certificate issued may be utilized or transferred by the developer.
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9. PROCEDURE AND GENERAL
GUIDELINES
9.1. Eligibility for Developers:-
Any developer fulfilling the following criteria will be eligible to apply under
various models.
Has experience in building construction works for at least threeyears and should have a good track record of quality
construction works.
Total net worth (Reserve & Capital) of last three years (of thecompany or its sister concern or consortium) should beequivalent to at least 10% of the project cost (excluding land
cost) i.e. cost of proposed EWS/LIG houses.
For applying under model no.2, the developer should hold atleast 5.0 acres of land in the concerned town.
The developer should have executed minimum 2.0 acres ofResidential or other type of Development in a single project
during the last 3 years. (As a developer or builder or as
construction agency) Joint venture or Special Purpose Vehicle by private developers
will also be eligible under the Policy.
9.2 Eligibility for Beneficiaries/Applicants:-
As per the criteria laid down by Government of India the monthly income
of applicant should be as follows:-
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10. ROLE OF AVAS VIKAS LIMITED-
THE NODAL AGENCY
(EOI Expression of Interest, AVL Avas Vikas Limited)(ULB- Urban Local Bodies)
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(QC Quality Control)
AVAS VIKAS LIMITEDA Company of Rajasthan Housing Board
(A Statutory Body under Rajasthan Sate Act No. 4 of 1970)
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11. FLOW CHART
(For Processing and approval of proposals by Developer)
(EOI Expression of Interest)(AVL Avas Vikas Limited)
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12.CONCLUSION
INDIA ,one of the five largest economies of the world with growth rate
of about 8 % for next year ,the total population of India is about
1,210,190,422*out of which 377,105,760* lives in urban areas i.e.
31.17%*.
The need for housing is about 45 million for next 5 years, to meet the
demand of housing Government initiates different policies and
schemes but the demand is very high and to fulfill such a high
demand is a very difficult task. Affordable Housing is one of the
solutions to this problem.
By using Public Private Partnership (PPP) platform we can build houses
under Affordable Housing Policies, since it is a joint venture between
private firms and Government, things really work very fast and come
into reality from paper work.
The basic aim of this policy is to provide stimulus economic activities
through affordable housing programmes in partnership. Its immediate
effect is having employment generation to urban poor, especially
construction workers. This policy will also strive to ensure equitable
supply of land, shelter, and services at affordable prices to all the
section of society, and thereby to prevent the growth of slums in
urban areas.
Finally we can say that to move India we need hands of both
Government entities and private entities and since housing is one of
the basic need of every human being it is prime importance of every
Government to provide habited to its citizens.
AFFORDABLE HOUSING ON PUBLIC PRIVATE PATNERSHIP
MODEL is best alternative to provide housing to each and
every citizen of the country.
(*Provisional figures of census of India 2011)
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13. REFERENCES
1.Affordable housing Partnership Guidelines 2009.2.Affordable housing for urban poor Kiran Wadhva 16 July
2009.
3.Department of Urban Development Housing & Local SelfGovernment Dec 2009 Government of Rajasthan.
4.Scheme_Guidelines_India_Infrastructure_Project_Development_Fund-English.
5.Government of Rajasthan draft guideline PPP_ 2009.
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