SUTP Peering Event

GEF-UNDP-WB Assisted Sustainable Urban Transport Project (SUTP) INDIA SUTP Peering Event 11.11.11 Pimpri Chinchwad Municipal Corporation (PCMC) Structure of the Presentation BRTS Projects at PCMC Implementation Challenges and Our Approach Showcase Project in Transport

BRTS Projects at PCMC PCMC has undertaken 4 BRTS corridors under JNNURM to strengthen Public Transport System. Corridor 1) Pune Mumbai Road 12.00 km Corridor 2) Aundh Ravet Road - 14.50 Km Corridor 3) Nashik Phata to Wakad- 8.00 Km Corridor 4) Kalewadi Phata to Dehu Alandi Road 10.275 km. Under SUTP Corridor 3)- To connect NH-50(Pune Nashik) to Pune Mumbai Express way Corridor 4) -Connecting InfoTech park at Hinjewadi and Industrial cum residential hubs in North part of Pimpri Chinchwad. BRTS PROJECTS IN PCMC AREA Total BRTS Corridor Length = 44.575 Km. AUNDH RAWET ROAD Length = 14.50 Km. Tender Cost =191.40 PUNE MUMBAI ROAD Length = 11.90 Km. Tender Cost =120.74 Second Intersection KALEWADI ROAD Length = 10.275 Km. Tender Cost =219.20 NASHIK PHATA ROAD Length = 7.90 Km. Tender Cost =206.80 First Intersection

Expected Benefits Increase in Public Transport users due to strengthening of the Corridor. Reduction in travel time of transport. Saving in fuel consumption. Improving environmental condition by reducing environmental pollution. Increase in Business areas surrounding the corridors due to better connectivity. A strong step forward in achieving the Vision of PCMC A city to Live, Spend and Entertain Key Impediments in Implementing the Project and Remedial Actions

Land Acquisition Key Issue Private Land owners The project is proposed to be developed in urban area where land value is too high. Pimpri Chinchwad being an industrial city where migration rate is higher. The tendency of citizens is to stay in the vicinity, hence, the land owners are unwilling to handover the land required for the development. Most of the Land Owners challenge the Land Acquisition in the court of law which result in delay of project. Approach by PCMC Public consultations in group as well as in individuals wrt a) Necessity of project & its consequences b) Mode of Compensation FSI, TDR, cash compensation by mutually agreed rates 30% (solacium) more than Ready Reconker Rate Land Acquisition (2/4) c) Assurance is given to land owners in writing by PCMC in case of advance possession of land d) For those land owners who do not agree with the above alternatives, then the land acquisition procedure is adopted as per Land Acquisition Act. 2) Key Issue Transfer of Govt. Land (Defence, MIDC, Railways) Administrative procedures/transfer of land take long time.

BRTS Corridor Kalewadi Phata to Dehu Alandi Road Resettlement of Ganesh Temple(Chikhali Kudalwadi) Issue: Religious structures: Sensitive issue Communal Resistance for relocation NEW OLD Solutions: Shifted in the same vicinity adjacent to earlier location with mutual understanding of all community people BRTS Corridor Kalewadi Phata to Dehu Alandi Road People s initiative for Resettlement of Darga/ Shrine Old Place of Darga/Shrine New Place of Darga/Shrine (Very close to earlier place with consent from respective communities)

BRTS Corridor Nashik Phata to Wakad Road Safe Re- location of the PAP s - Provision of the Transport facilities by PCMC Issue: Reluctance for shifting from original place to transit camp on account of transportation cost Solutions: PCMC has provided transportation facilities with labors to help them to shift their luggages from original place to transit camp BRTS Corridor Nashik Phata to Wakad Road Transit shelter With all basic amenities ( For Slum Dwellers)

BRTS Corridor Nashik Phata to Wakad Road Lane view of Transit shelter Issues: PAP s were not agree to shift in other locations transit camp Solutions: Site for transit camp was decided in consultation with PAP which is very close to earlier place so that PAP need not to spend money on transportation, time on commutation and loosing their employment opportunities BRTS Corridor Nashik Phata to Wakad Road Safe and adequate water and provision of electricity at Transit shelter Reluctant to shift due to non availability of basic facilities Basic facilities are provided to all families in transit camp such as water, sanitation facilities, toilet facilities, electric supply, drainage

Proposed place of Rehabilitation of PAP (Nashik Phata Slum) Vitthalnagar Center of attraction New View Old view UTF - The concept

Pimpri Chinchwad Located adjacent to Pune and 1 ½ hrs from Navi Mumbai One of the most rapid growing cities of India with decadal growth rate of 150% Rs. 2571 crores of JNNURM projects under implementation in addition to Rs. 1200 crores of city level capital works Without borrowing PCMC would not have been able to achieve its infrastructure provision targets PCMC wanted its borrowing to have a minimal impact on its budget for sustainability PCMCs funding strategy Bundled BRTS projects into a SPV Supported the SPV with secure finances by creating an Urban Transport Fund (UTF) Leveraged the SPV for raising finance PCMCs budget continued to manage the rest of infrastructure projects

Funding model Rs Crores Total Project cost 1500 Funding model JNNURM (GoI and GoM) 475 PCMC internal sources 100 Debt from DFI, Multi laterals, Banks 650 Internal accruals and exploitation of land 275 Total sources 1500 Who benefits from urban transport infrastructure? Direct Beneficiaries Passengers of a public transport system Vehicle owners using a flyover Businesses based on the infrastructure- advertisers on the system, vendors Indirect Beneficiaries Local Government- gaining higher property taxes in the region due to escalation in property prices Business around the transport system- gaining from better connectivity Property owners near the developed transport systemgaining from higher potentail value of property

Traditionally BRTS capture value from direct beneficiaries Traditional revenues of BRTS are Fare box revenues Sale of monthly passes Advertising revenues Vendor licensing Value capture from indirect beneficiaries is limited Viability of BRTS development can be enhanced if value from indirect beneficiaries can be captured Unlocking value from indirect beneficiaries in Pimpri-Chinchwad Designated 100 mtr on either side of BRT corridor as BRT zone Set up an Urban Transport Fund (UTF) and accorded revenues to it Ceiling FSI raised to 1.80 from existing 1.0 Allowed Transfer of Development Rights (TDR) from other zones to BRT corridor on payment of premium Other incomes like advertisement, incremental property tax, lease rentals on utilities Loading of Transferable Development Rights (TDR) Building permission charges in the zone Value unlocked from Indirect Beneficiaries Incremental Property Taxes Advertisements & lease of utility ducts

Demarking the corridor is the first step towards building the fund Transfer of development right (TDR) Mechanism TDR is making available additional built up area in lieu of area surrendered by owner of land Land is acquired by PCMC for municipal purposes It provides the land owner a Development Right Certificate in lieu of cash consideration of land He may use it himself or transfer to any other person; TDR TDR is allowed to be loaded from a high intensity zone to low intensity zone of a city as additional built up area for a plot PCMC charges a premium for doing the reverse i.e. load the TDR from low intensity zone to the BRT zone This reverse loading increases the value of TDR and PCMC takes a part of value accretion as its premium for the UTF

Transfer of Development Rights (TDR) in PCMC PCMC has been divided into three zones (A. B & C) for the purpose of TDR, with Zone A being highly populated and Zone C least populated For Zone A areas the FSI for TDR purpose cannot be tranferred For Zone B areas the FSI for TDR purpose can be consumed in Zone B and C For Zone C area the FSI for TDR purpose can be consumed only in Zone C TDR for BRTS Corridor, Zone A loading in this zone can be done only after paying PCMC Rs. 3000 per sq. m Zone B loading in this zone can be done only after paying PCMC Rs. 6000 per sq. m Zone C - loading in this zone can be done only after paying PCMC Rs. 9000 per sq. m Strengthens the corridor densification approach for project sustainability

Implementing the concept Capturing indirect benefits for debt syndication Created an Urban Transport Fund (UTF); will be managed by PCMC Infrastructure Company Designated 100 mtr on either side of BRT corridor as BRT Corridor Zone Revenue sources accorded to the UTF from BRT Corridor Zone Ceiling FSI raised to 1.80 from existing 1.0 Allowed Transfer of Development Rights (TDR) from other zones to BRT corridor on payment of premium Other incomes like advertisement, incremental property tax, lease rentals on utilities Land resources have been identified on the corridors for using land as a resource UTF is operational General Body and State Govt has approved modification to DC rules Rs. 15 crores of revenue has been earned till date

PCMC Infrastructure Company Leveraged the UTF to raise 48 Million USD from the World bank Formed a separate company to manage the UTF Construct operate and maintain the BRT corridors Manage the UTF; collect and deploy revenues A ring fenced vehicle for debt funding Strengths of the Implementation Model

Rationale for SPV The SPV is 100% owned and controlled by PCMC Helps PCMC to raise long term loans (12 yrs +) from multilateral agencies SPV ensures focused and timely implementation, necessary for projects with borrowing SPV can focus on generating the revenues for the projects Existing employees can be deputed to the SPV, and can be given more focused role in SPV for timely implementation. Sustainability of the model The road network designed to cater to future growth patterns of the city It is a priority based approach Will spur substantial real estate development Will provide additional direct benefits to the property owners along the corridor Follows the transit corridor densification approach for project sustainability Funding model is designed to capture this future growth benefits to fund road development Fund makes the revenues secure which helps raise finance from lending agencies Without fund structure it will be difficult to channelize earnings from indirect beneficiaries into development

Design of the fund Notified 100 m on either side of BRT route as BRT corridor zone Increased ceiling FSI from 1 to 1.80 0.80 loading is through TDR with payment of a premium Advantages Does not release additional FSI in the city; only realigns the FSI from other zones to BRT Corridor Will protect the value of TDR and make it more attractive hence encourage implementation of DP PCMC can plan higher order infrastructure in BRT corridor and facilitate focused service provision by densification Ensures the attractiveness of mass transit and protection to environment How is this different from FSI bank? FSI bank releases additional FSI in the market; impacts real estate prices TDR becomes unattractive and implementation of DP suffers Common questions Why increase by only 0.80 and not more? Follow approved practice and not attract litigation by going for more. Keep the infrastructure provisioning within manageable limits and improve it by focused provisioning Maintain equilibrium between generation and absorption of TDR Why change the philosophy of spreading away from main roads? Densification supports use of mass transit and increase its attractiveness Can sustain development by increasing earnings (premium) from direct beneficiaries

How will the model operate? No. Roads Gross area in BRT corridor Vacant area Area in lakh sqmtr Developed area Current Built up * Scope for future devp ** 1 Aundh Ravet 28.80 13.90 14.90 11.92 11.12 2 Old NH-4 25.40 (A) 2.54 (B) 22.86 (B x 0.80) 18.29 (A x 0.80) ** 2.03 3 Nashik Phata to Wakad 15.58 4.00 11.58 9.26 3.20 4 Kalewadi to Dehu-Alandi (via 22.40 11.00 11.40 9.12 8.80 KSB Chowk) 5 Dehu Alandi Road 29.54 19.10 10.44 8.35 15.28 6 Pune Alandi Road 18.94 9.60 9.34 7.47 7.68 7 Nashik Phata to Moshi 20.72 6.00 14.72 11.78 4.80 8 Kiwale - Bhakti Shakti 10.60 5.50 5.10 4.08 4.40 Total 171.98 71.64 100.34 80.27 57.31 * Assumed 1 FSI and netting out 20% for open spaces and reservations ** After assuming 1 FSI on vacant area and netting out area for open spaces and reservations Scale of development assumed Corridors / Period 2010-2014 2015-2019 2020-2024 Aundh Ravet 50% 25% 25% Old NH-4 50% 25% 25% Nashik Phata to Wakad 50% 25% 25% Kalewadi to Dehu-Alandi (via KSB Chowk) 50% 25% 25% Dehu Alandi Road 25% 40% 35% Pune Alandi Road 25% 25% 50% Nashik Phata to Moshi 40% 35% 25% Kiwale - Bhakti Shakti 40% 35% 25% 57.31 Lakh sq. m. of vacant land development will demand 14.90 Lakh sq. m. TDR 40% of existing properties will get redeveloped 32.10 Lakh sq. m. of redevelopment; demand for TDR 8.34 Lakh sq. m.

Total income potential of BRT corridors Rs. 2945 Crs Advertisement; Rs. 205 Crs; 7% Utility ducts; Rs.105 Crs; 4% Incremental Property Tax; Rs. 110 Crs; 4% Devp Charges; Rs. 780 Crs; 26% TDR Premium; Rs. 1745 Crs; 59% Strategy for making the BRT attractive

Strategies to make to BRT attractive State of Art BRT system for fast and cost effective transit Higher order infrastructure for attracting densification 24/ 7 water supply 100% sewerage provision Dust Bin free zone Road design Service lanes for mobility of local traffic Provision for pedestrians under pass, walk ways Provision for non motorized vehicles cycle track Facilities for vehicle parking 100% extra parking; 25% to be handed over to PCMC for public parking Miscellaneous Hawker zones Key success factors While the model enables PCMC to raise funds it also enables; 1. Densification of mass transit corridors which is essential for its success of mass transit systems 2. Allows PCMC to procure land for its municipal reservations and provision of common amenities 3. Guides development and helps in focusing infrastructure provision 4. SPV structure allows timely and focused implementation

Before implementation of Mumbai Pune BRT corridor CHINCHWAD - NH4 KASARWADI - NH4 DAPODI - NH4 Mumbai Pune BRT corridor after implementation

Mumbai Pune BRT corridor after implementation CHINCHWAD GRADE SEPERATOR (NH4) FINOLEX SQUARE PIMPRI (NH4) Thank You