Mini Thesis Final Presentation

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NICMARGOAA Presentation onNational Institute Construction Management And ResearchGOA CAMPUSPresented byChavan Abhilasha Pravin (G04105)Patel Nirav Dineshbhai (G04131)Rohit Rai (G04137)Guided byAsso. ProI. N. Ramesh BabuNICMARGOA(|~re `c|eeW Chapter 1: Introduction1.1. Need Ior study1.2. Obiective oI the Study1.3. Scope oI the Study1.4. Methodology `|u |e|~.|.r~r.c: |c|.c.e- /:J [u-.:e-- lcJe|2NICMARGOA(|~re `c|eeChapter2: Present scenario2.1. Demographic scenario2.1.1 Indian demographic scenario2.1.2. Maharashtra Demographic Scenario2.1.3. Mumbai Demographic Scenario2.2 Housing Scenario2.3.Hosing eIIorts2.4 Obstacles to housing eIIorts`|u |e|~.|.r~r.c: |c|.c.e- /:J [u-.:e-- lcJe|3NICMARGOA(|~re `c|eeW Chapter 3: Slum Rehabilitation Policies In Maharashtra3.1. Introduction 3.2. Evolution OI Slum Rehabilitation Policies3.3. Policies`|u |e|~.|.r~r.c: |c|.c.e- /:J [u-.:e-- lcJe|=NICMARGOA(|~re `c|eeChapter 4: Slum Rehabilitation :Casestudy1Tata Nagar , Mankhurd, Kurla, Land Development Proiect4.1. Introduction 4.2. Scheme implemented4.3. Financial implications`|u |e|~.|.r~r.c: |c|.c.e- /:J [u-.:e-- lcJe|5NICMARGOA(|~re `c|eeW Chapter 5: Slum Rehabilitation :Case study 2 Mumbai Airport Rehabilitation Proiect , Kurla5.1. Introduction 5.2. Scheme implemented5.3. Financial implications`|u |e|~.|.r~r.c: |c|.c.e- /:J [u-.:e-- lcJe|NICMARGOA(|~re `c|eeW Chapter 6:Recomendations and Conclusion6.1. Comparative Analysis6.2. Recommendations6.3. ConclusionBibliography`|u |e|~.|.r~r.c: |c|.c.e- /:J [u-.:e-- lcJe|7NICMARGOA(c:re:r-W Present Demographic ScenarioW Present Housing ScenarioIntroduction Evolution oI PoliciesVarious PoliciesUnsuccessIul Case studySuccessIul Case studyConclusion.`|u |e|~.|.r~r.c: |c|.c.e- /:J [u-.:e-- lcJe|8NICMARGOA:rcJucr.c:W Industrial revolution 1960`sW Unplanned migration Irom rural to urban areasW Unbalanced economic development in the country`|u |e|~.|.r~r.c: |c|.c.e- /:J [u-.:e-- lcJe|901002003004005006007002001 2030Population In MillionsYear Urban Population GrowthUrban population2575Total Urban PopulationSlums DwellersNon Slums DwellersSource: Census OI India 2001Source: Census OI India 2001NICMARGOA`|u |e|~.|.r~r.c: |c|.c.e- /:J [u-.:e-- lcJe|l0051015202530354045Percentage of Migration of Total PopulationReasons for MigrationMigration in MaharashtraNICMARGOA:J.~: [ec~|.c `ce:~.cTotal population, slum population, and their percentage in municipal corporation with population above 1 million in India 2001`|u |e|~.|.r~r.c: |c|.c.e- /:J [u-.:e-- lcJe|llCity State Total PopulationSlum PopulationPercentage Slum PopulationMumbai Maharashtra 11978450 6475440 54.1Delhi Delhi 9879172 1851231 18.7Chennai Tamilnadu 4572876 1485309 32.5Kolkata West Bengal 4343645 819873 18.9Bangaluru Karnataka 4301326 430501 10.0Hyderabad Andhra Pradesh 3637483 626849 17.2Ahmedabad Guiarat 3520085 473662 13.5Source: Census OI India 2001NICMARGOA54.118.732.518.91017.213.5Percentage Slum Population in Major Cities in India Percentage Slum Population `|u |e|~.|.r~r.c: |c|.c.e- /:J [u-.:e-- lcJe|l2Source: Census OI India 2001NICMARGOAl~|~~-|r~ [ec~|.c `ce:~.cTotal population, slum population, and their percentage in municipal corporation with population above 1 million in Maharashtra- 2001`|u |e|~.|.r~r.c: |c|.c.e- /:J [u-.:e-- lcJe|l3City State Total PopulationSlum PopulationPercentageSlum PopulationMumbai Maharashtra 11978450 6475440 54.1Pune Maharashtra 2538473 492179 19.4Nagpur Maharashtra 2052066 737219 35.9Thane Maharashtra 1262551 351065 27.8Kalyan-Dombiwali Maharashtra 1193512 34860 2.9Nashik Maharashtra 1077236 138797 12.9Pimpri Chichwad Maharashtra 1012472 123957 12.2Source: Census OI India 2001NICMARGOA`|u |e|~.|.r~r.c: |c|.c.e- /:J [u-.:e-- lcJe|l=54.119.435.927.82.912.9 12.2Percentage Slum Population in Major Cities in India Percentage Slum Population Source: Census OI India 2001NICMARGOAlu~. `|u |cu|~r.c: `ce:~.c13540102030405060708090100Percent Land Aquired Percent PopulationChart TitleNonSlum Dwellers Slum Population`|u |e|~.|.r~r.c: |c|.c.e- /:J [u-.:e-- lcJe|l5Source: Census OI India 2001NICMARGOA`ce:~.c|`|u |e|~.|.r~r.c: |c|.c.e- /:J [u-.:e-- lcJe|lNeed Ior Slum Rehabilitationevelopment SlumsPopulation growthIncrease in SlumsFailure oI slum Rehabilitation policiesDevelopment stopsNICMARGOAcu-.: `ce:~.cW Need 20 million new houses W Substandard housing units which need structural and sanitary improvements.`|u |e|~.|.r~r.c: |c|.c.e- /:J [u-.:e-- lcJe|l73367Urban wellings1 Room dwellingsSuIIicient large dwelling3763Rural wellingsSource: Census OI India 2001NICMARGOAcu-.: `|cr~e .: :J.~.`|u |e|~.|.r~r.c: |c|.c.e- /:J [u-.:e-- lcJe|l8ear1991 1996 2001Urban 8.23 7.71 6.64Rural 14.67 13.85 12.76Total 22.90 21.56 19.40Source: National Building Organization, Government oI India.Millions OI Housing Units requiredNICMARGOA11ecr (1 cu-.: `|cr~e. `ce:~.c z`|u |e|~.|.r~r.c: |c|.c.e- /:J [u-.:e-- lcJe|l9Opportunity Ior Development oI construction industrySlum increase/Decrease in DevelopmentSlum growthIncreased housing demandBoom to housing industryOpportunity Ior construction industryNICMARGOA`u|n (1 [c~| cu-.:`|u |e|~.|.r~r.c: |c|.c.e- /:J [u-.:e-- lcJe|2001000020000300004000050000600007000080000900001000001960s 1970s 1980s 1990s 2000sSupply of Formal Housing DemandSupplyNICMARGOAChawlW Permanent multistoried dilapidated buildingsPatra chawlsW Semi permanent constructions both authorized and unauthorized built with corrugated iron sheets.Zopadpatties:W Built with scrap materials by squatters in additioan there are pavement dwellers.`|u |e|~.|.r~r.c: |c|.c.e- /:J [u-.:e-- lcJe|2llu~. `|u-NICMARGOAcu-.: Je.e|ce:rHousing developmentSubsidized ownership Subsidized rentalOwners are not able to recover costTenants sometimes ask large bulk oI money to vacate the houseIndia so Iar has not started any rental housing industry`|u |e|~.|.r~r.c: |c|.c.e- /:J [u-.:e-- lcJe|22NICMARGOA(-r~c|e- .: :J.~: |cu-.: e11cr-Development lots -extremely short supply and very expensive.Developable lands-small land holders ,diIIicult to acquire plot.India is not encouraging private large scale developers. No Long term home mortgage loans .Home construction Ior sale and rental apartment construction has not developed.Rental housing is in extremely short supplyInnovative technologies have not developed.`|u |e|~.|.r~r.c: |c|.c.e- /:J [u-.:e-- lcJe|23NICMARGOA:rcJucr.c:`|u |e|~.|.r~r.c: |c|.c.e- /:J [u-.:e-- lcJe|2=Till 1970W Demolition oI slumsW As illegal squatter 1970-1980 W Slum improvement works W Census oI slums W Issue oI i-cards1980-1990W Slum upgradation worksW Lease to the slum dwellersW SoIt loans were extendedW Only on non-reserved govt. Lands. 1990 till todayW The underlying land treated as resource.W Incentive FSI Ior constructing tenementsW The proIits generated used Ior cross-subsidizing the Iree houses Evolution oI slum development policiesAnd approachesNICMARGOA11ecr c1 |c|.c.e-`|u |e|~.|.r~r.c: |c|.c.e- /:J [u-.:e-- lcJe|25Urban population living in slumsReduced Irom around 60 to 35Source: UN HabitatNICMARGOA`ucce-- (1 |c|.c.e-Failed85Succeeded 15 Success Of PoliciesFailedSucceeded`|u |e|~.|.r~r.c: |c|.c.e- /:J [u-.:e-- lcJe|2Source: UN HabitatNICMARGOA(ecr..e (1 `ruJnThe obiective oI this study is to develop and propose a business model Ior slum rehabilitation..`|u |e|~.|.r~r.c: |c|.c.e- /:J [u-.:e-- lcJe|27NICMARGOA`cce (1 `ruJnThe scope oI this proiect is limited to study oI various cases and arriving at suitable Iinancing strategy Ior appropriate schemes in Maharashtra.`|u |e|~.|.r~r.c: |c|.c.e- /:J [u-.:e-- lcJe|28NICMARGOAler|cJc|cnTo study the present demographic trends in regard oI urbanizationStudy History And Evolution oI slum rehabilitation approachesTo Study Various Schemes And PoliciesTo Study Various Cases And Analyzing Their SuccessGuidelines For Proposal`|u |e|~.|.r~r.c: |c|.c.e- /:J [u-.:e-- lcJe|29NICMARGOAeeJ [c `ruJnW Around 28 oI Indian population lives in city. Around 1/3rdoI that population reside in slums. W Understand the various policies.W Sources oI Iunds.W Help to understand the Iailure oI previous business model.W Prepare business model Ior appropriate schemes.W Zero slum development`|u |e|~.|.r~r.c: |c|.c.e- /:J [u-.:e-- lcJe|30NICMARGOA|(|(``|u |e|~.|.r~r.c: |c|.c.e- /:J [u-.:e-- lcJe| 31NICMARGOA|o-W 1967 & 1969:Special Slum Improvement Cell was created in BMC ( Bombay Municipal Corporation ) To clear and resettle slums on municipal lands To improve in the basic amenities like drainage, drinking water, roads toilets etc`|u |e|~.|.r~r.c: |c|.c.e- /:J [u-.:e-- lcJe|32NICMARGOA.WIn 1970 : Slum Improvement Program (SIP) W To provide water supply, toilets, roads, drainage and streetlights Ior slum dwellers.W The Slum Areas (Improvement. Clearance and Redevelopment) Act. 1971:W Where competent authority may by notiIication in the oIIicial Gazette,W Declare area to be slum` .WThe Maharashtra Vacant Lands (Prohibition of Unauthorized Structures and Summary Eviction) Act. 1975W All lands encroached by squatters can be considered vacant,W All slums covered by the Act are temporary and can be removed,W Police can be mobilized Ior eviction and alternative accommodation has to be provided|o-NICMARGOAW Slum Upgrading Programme (SUP) funded by the World Bank. 1985W World Bank`s Rs 53 crore Bombay Urban Development Proiect (BUDP) W With Programmes The Slum Upgradation Programme (SUP) And the Low Income Group Shelter Programme (LISP).W The Prime Minister`s Grant Project (PMGP). 1985 This is to improve living conditions oI slum dwellers in Mumbai.|so-NICMARGOAW Slum Redevelopment Scheme (SR). 1991W The Slum Redevelopment Scheme oI the SRA aimed to provide enough incentives Such as increasing the Floor Space Index (FSI) allowed in slum areas The ability to transIer development rights to other areas oI the city For private developers and builders to redevelop slums. The theory was that by selling the extra space in the open market, tenements Ior slum dwellers would be cross-subsidized and made aIIordable to them.|o-NICMARGOASlum Rehabilitation Scheme (SRS). 1995 AIter the change oI government, the AIzalpurkar Committee Iurther modiIied the SRD and the new scheme was called Slum Rehabilitation Scheme (SRS). Departures Irom previous policies were made on various levels. The scheme was opened to all slum dwellers included in the 1995 electoral rolls, including pavement dwellers. The carpet area oI tenements was increased to 225 sq. It. (approx 20 sq. m.). The tenements were to be given Iree oI cost to slum dwellers. For every 10 sq. It. (1 sq. m.) oI rehabilitated Iloor space constructed in the Island City, the builders were oIIered a Iree sale component oI 7.5 sq. It. (0.5 sq. m.).|o-NICMARGOA W In 2000`s: Govt-NGO Partnership in Slum Resettlement A maior resettlement oI about 60,000 people was carried out with popular participation and partnerships with NGOs in the recent past Ior the Mumbai Urban Transport Proiect (MUTP).zooo-NICMARGOA(~-e -ruJn |`|u |e|~.|.r~r.c: |c|.c.e- /:J [u-.:e-- lcJe|38NICMARGOA`|u |e|~.|.r~r.c: |c|.c.e- /:J [u-.:e-- lcJe|39Project Land development at Mankhurd KurlaProiect assignee MMRDA ( Mumbai Metropolitan Regional Development Authority)Proiect implementing authorityMUIP (MumbaiUrban InIrastructure Proiect)Proiect executed by Akruti Hiranandani ioint ventureLocation Village Mankhurd, Taluka Kurla, Mumbai Suburban districtTotal area 62091.30 ~~ . l~:||uJ. ku|~. |~:J [e.e|ce:r |cecrNICMARGOAW Proiect Schedule:`|u |e|~.|.r~r.c: |c|.c.e- /:J [u-.:e-- lcJe|=0ate Event 17.11.2003 Commencement CertiIicate Received17.11.2003 Work Commenced09.12.2003 Plinth CertiIicate Received08.07.2005, 21.12.2005 Proiect Completed28.12.2005 Houses Constructed Handed Over to MMRDA23.01.2006 Allotted by MMRDA to RAP in public IunctionNICMARGOA%|e [er~.|- (1 %|e (c:-rucreJ /e~`|u |e|~.|.r~r.c: |c|.c.e- /:J [u-.:e-- lcJe|=lMax BUA permissible(iii) Non CRZ area (9 x10 a)(iv) CRZ area ( 8 x 10b)Total ( I+ii)87993.624651.4992645.11Prop BUA on plot Ior rehab including staircase, liIt, liIt lobby area as per approved building plans92207.72Area oI B/W, W/C & S/O & passages as per approved building plans3503.88No. oI rehab tenements oI size equivalent to 20.90 sq.m 3736No. oI B/W, W/C & S/O 104NICMARGOA`|u |e|~.|.r~r.c: |c|.c.e- /:J [u-.:e-- lcJe|=2uring the F.Y. 2005-06 (A.Y.2006-07) on Completion.Gross ProIit Rs. 51,06,27,772/-Cost oI Proiect Rs. 51,06,05,521/-, Resulting in Total Income Rs. 22,251/-As on 31stmar 2006NICMARGOA|e~-c:- c1 [~.|ueW Total area Ior development: 81,046 sq.mts. W Total built up area oI commercial units : 11,161.07 sq.mts.(1,17,800 sq.It.)`|u |e|~.|.r~r.c: |c|.c.e- /:J [u-.:e-- lcJe|=3According to the Assessing OIIicer, as the provisions oI section80IB(10)(d) as applicable w.e.I. 1-4-2005, the limit Ior havingcommercial space in the housing proiects is 5 oI the total built uparea or 2000 sq.It. whichever is lessAccording to the Assessing OIIicer, as the provisions oI section80IB(10)(d) as applicable w.e.I. 1-4-2005, the limit Ior havingcommercial space in the housing proiects is 5 oI the total built uparea or 2000 sq.It. whichever is lessNICMARGOA`|u |e|~.|.r~r.c: |c|.c.e- /:J [u-.:e-- lcJe|==Parameters Conditions as per Section 80IB (10) Facts in the Case of the Assessee1 Date oI approval should be beIore 31.03.2007 Approved on 10.09.20032 Date oI commencementShould have commenced aIter 1. 10 1998 Commences in December 20033 date oI completion should be completed by 31.03.2008 or Iour years Irom the end oI the Iinancial year in which approval was given, iI the same was given aIter 31.03.2004Completed on 21.12.20054 evidence oI completionFull occupation certiIicate issued by local authorityIull occupation certiIicate received by the assessee on 21. 12.20055 Size oI plot 1 acre 46881.01 sq m ie around 10 acres6 Size oI each unit 1000 sq.It iI located in mentors and 1500 sq.It elsewhereEach residential tenements is oI 225 sq.It.7 Size oI commercial spaces5 oI the total built up area or 2000 sq. It whichever is lessMore than 1 lakh sq. It.8 Whether notiIied by the board or not Slum rehabilitation schemes notiIied by the board are exempted oI the conditions oI completion and size oI the plotNot notiIied by the boardNICMARGOA`|u |e|~.|.r~r.c: |c|.c.e- /:J [u-.:e-- lcJe|=5(~-e -ruJn zNICMARGOAl/| . lu~. /.cr |e|~.|.r~r.c: |cecr`|u |e|~.|.r~r.c: |c|.c.e- /:J [u-.:e-- lcJe|=Project Land development at KurlaProiect assignee SRA ( Slum Rehabilitation Authority)Proiect implementing authorityMIAL ( Mumbai International Airport Private Limited)Proiect executed by HDIL (Housing Development And InIrastructure Limited)and GVKLocation Airport vicinity, BandraTotal area 276 Acres Rehabilitation oI 82,500 Families Granted FSI 4NICMARGOA[.-r.ur.c: (1 `|~e-`|u |e|~.|.r~r.c: |c|.c.e- /:J [u-.:e-- lcJe|=7Mumbai International airportGVK ( 76 shares)GVKslum rehabilitationHDILslum rehabilitationPhase1 Pashe2 Phase3 Phase4MIAL ( 24 shares)NICMARGOATotal area Ior development276 AcresAirports, 158Rehabilitation, 118Airports, 158HDIL, 65GVK, 53`|u |e|~.|.r~r.c: |c|.c.e- /:J [u-.:e-- lcJe|=8l/| . lu~. /.cr |e|~.|.r~r.c: |cecrNICMARGOA||~-e|`|u |e|~.|.r~r.c: |c|.c.e- /:J [u-.:e-- lcJe|=9Rs. 1900 cr Land Cost Rs. 1900 cr Land Cost 53 Acres Land38 AcresSlum Rehabilitation15 AcresCommercial PurposeNICMARGOA[.:~:c.~| `cuce [c %|e |cecrTDRRights costing Rs 3000/ sq. It -Rs 3250/ sq.ItResidential UpIrontAdvanced booking during Phase-i worth Rs 5000 cr.FDIFrom US and Europe,10Dilution oI control.`|u |e|~.|.r~r.c: |c|.c.e- /:J [u-.:e-- lcJe|50NICMARGOA W Location: map`|u |e|~.|.r~r.c: |c|.c.e- /:J [u-.:e-- lcJe|5lWMaior potential Ior slum rehabilitation and developmentWMaior investment in inIrastructure in the regionl/| . lu~. /.cr |e|~.|.r~r.c: |cecrNICMARGOA`|u |e|~.|.r~r.c: |c|.c.e- /:J [u-.:e-- lcJe|52WLargest rehabilitation scheme in IndiaW Rehabilitation ~1 million peopleW Generation oI more than 10000 iobs over next Iew yearsl/| . lu~. /.cr |e|~.|.r~r.c: |cecrNICMARGOASRS proiects with low slum density can avail FSI up to 3.0x, while high density proiects can avail FSI oI 4.0xDevelopers can execute SRS only on getting consent Irom at least 70 oI the slum owners.During the slum rehabilitation period, the developer can construct and sell Iree sale area available to him as part oI the SRS scheme with a cap oI 90.`|u |e|~.|.r~r.c: |c|.c.e- /:J [u-.:e-- lcJe|53. Source: SRAl/|. :ce:r..e- NICMARGOA`|u |e|~.|.r~r.c: |c|.c.e- /:J [u-.:e-- lcJe|5=NICMARGOA`|u |e|~.|.r~r.c: |c|.c.e- /:J [u-.:e-- lcJe|55Particulars Sealable areaPhase1Phase iiPhase iiiRemarksMn sq.It.Land TDR 8.9 2.6 2.7 3.6 (82500 (Iamilies)x269sqIt x1.2 (loadings)/4)Construction TDR35.4 10.3 10.7 14.4 82500 (Iamilies)x269sqIt x1.2 (loadings)/1.33(FSI)FSI at Airport site9.9 9.9 65 acres x 2.5 (FSI) x1.4 ( Loading)Total 54.2 12.9 13.4 27.9Source: Company, Angel Research[|- `~|e~|e :ree-r 1c l/| |cecr.NICMARGOA[.:~:c.~| ~cr2007 2008 2009 2010 2011 2012Gross sales1214 2395 1750 1479 1775 3106Net sales 1214 2395 1750 1479 1775 3106Total operatingincome1214 2395 1750 1479 1775 3106EBIT 620 1568 798 680 682 1602PAT 548 1410 677 590 734 1310 oI Sales 45.1 58.9 38.7 39.9 41.4 42.2`|u |e|~.|.r~r.c: |c|.c.e- /:J [u-.:e-- lcJe|5Source. Companv. Angel ResearchAll Iigures in Crore RupeesNICMARGOA(c:-.Je~r.c:-`|u |e|~.|.r~r.c: |c|.c.e- /:J [u-.:e-- lcJe|57There is possibility oI increasing FSI in suburbs Irom 1x to 1.33x which will Impact TDRvolumes and thereby prices negativelyFall in TDR pricesOver-dependence on MMRDelay in executionLong gestation SRS proiectsWMumbai property prices have gone up by 20-30 Irom its low.W With MMR accountingIor 87 oI HDIL's saleable area, any decline in demand or prices could impact our NAVWAs the company Iollows proiect completion method to book revenues we expect substantial iump in Revenues in F2012E. WAny delay in executionwill impact our estimates and in turn our NAV.W SRS has long gestation period WAny delay in above processes could increase proiect costs and delay in sales Irom proiect FSI, creating a cash trapNICMARGOA(c~~r..e ~:~|n-.-Tata Nagar MIALNo consideration Ior Iall oI TDR prices Consideration Ior Fall in TDR pricesOver-dependence on MMR No Over-dependence on MMRNo Consideration Ior Delay in execution Consideration Ior Delay in executionNo Consideration Ior Long gestation SRS proiectsConsideration Ior Long gestation SRS proiectsNo proper planning removing above IlawsProper Pre-PlanningSocio-cultural imbalance Social considerations`|u |e|~.|.r~r.c: |c|.c.e- /:J [u-.:e-- lcJe|58NICMARGOA(c:c|u-.c:.By studying various Slum rehabilitation policies and cases it is clear that, along with appropriate policies socio- cultural considerations and Iinancial strategies are the Ioundation Ior the successIul business model oI slum rehabilitation proiects.`|u |e|~.|.r~r.c: |c|.c.e- /:J [u-.:e-- lcJe|59NICMARGOA[.|.c~|n oods Robert. Slums and Sustainable Development, International conIerence on habitat and sustainable development vol-1 dec-97, New Delhi. 2 as. Amivakumar. Urban Planning In India, Jaipur, Rawat publication 20073 Spence. Michael. Annez. Patricia Clarke. Bucklev RobertM. Urbanization And Growth- Commission On Growth And Development. Jaipur, RawatPublication-2010.4 Cherunilam. Francis, Housing In India, Himalaya publishing house, Delhi 1987`|u |e|~.|.r~r.c: |c|.c.e- /:J [u-.:e-- lcJe|0NICMARGOA[.|.c~|n1.`|u |e|~.|.r~r.c: |c|.c.e- /:J [u-.:e-- lcJe|lNICMARGOA%|~:|ncu!!!`|u |e|~.|.r~r.c: |c|.c.e- /:J [u-.:e-- lcJe|2