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.

RAJASTHAN
Total Population Urban Population Percentage of Urban Population - 68,621,012* - 17,080,776* - 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 Urban Population Percentage of Urban Population Proportion to Rajasthan Population -36, 85,681* -12, 64,060* -34.30%* -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 2009

MODEL NO. 2
The main objective of the policy is to provide Affordable houses to EWS/LIG/MIG category of the urban society. Public Private Partnership (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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2. INDIA
(A FAST GROWING FREE MARKET DEMOCRACY)
Indias competitiveness from a natural and human resources

standpoint is making it the destination of choice for investors. India is a fast-growing economy with a dynamic and robust financial system. Being a democracy ensures a stable policy environment and its independent institutions guarantee the rule of law. This highly diversified economy has shown rapid growth and remarkable resilience since 1991, when economic reforms were initiated with the progressive opening of the economy to international trade and investment. Events such as the Asian currency crisis, the dotcom (.com) bust and rising oil prices have had no significant impact on Indias growth; with the economy recording an average annual GDP growth of 6.5% over the past decade. Going forward, the country is targeting an annual GDP growth rate of 7-8%.

India is in the global arena for increased foreign investment - both through the Equity markets - termed Foreign Institutional Investment (FII) - and Foreign Direct Investment (FDI).

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 sector participation in infrastructure provision. Providing policy stability to businesses to encourage investment and growth. 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.

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 the private 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 plan and 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.

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 sector on contract on or concession other agreement for between a an Government or statutory entity on the one side and a private company the side, delivering infrastructure service on payment of user charges."

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.

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.

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 global manufacturing & trading hub, is supported by world class infrastructure through Public Private Partnership. DMIC* is reported to have Integrated Industrial Areas & Investment Regions developed from 2008 to 2016. Mott MacDonald is working with Gujarat state on this project preparing reports for BharuchDahej Investment Region and Vadodara Ankleshwar & Palanpur Mehsana Industrial areas.
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-term equity cannot be provided by the market in the present financial scenario. Also financial liability required by infrastructure projects would not be sufficed. Most sectors face a lot of hindrance in enabling a regulatory framework 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 in diversified 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 also be 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 for financing 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 the stakeholders 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 the facility 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 all facilities by entrusting the management and control, subject to predetermined 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 to planning, 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 of land 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 private partner 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 maintain the 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 public sector 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 predetermined 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 raise funds 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 and mutually 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 company is 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 traditional procurement 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 project or 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 costeffective 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 public and 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 of ways. 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. Whereas traditional 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 agencies. foundation opportunities Given work for the the that long growth were term PPP of previously nature the of confined these In provides to a public stable PPP relationships, addition,

undertaking

under

arrangements business.

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 is clearly 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 understand them 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 managerial control 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 the management 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 and expensive. 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 is important 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 private sector. 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 the effect 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 weighed against 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 greater public demand for accountability and responsiveness than in others. This may give rise to public criticism or even hostility towards PPP arrangements. under Moreover, under of PPP arrangements, where lines lines of of accountability can be less straightforward (and transparent) than traditional methods procurement 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 ensure compliance and responsiveness to public concerns.

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4. NINE GLOBE INDUSTRIES PVT. LTD.

Registered Office NINE GLOBE INDUSTRIES PVT. LTD. A-402, Prathmesh Tower, Raghuvansi Mill Compound, Senapati Bapat Marg, Mumbai 400 013 (India) Tel : (+91 22) 2494 5252 Fax : (+91 22) 2496 5252 Email: admin@nineglobe.com

Corporate office NINE GLOBE INDUSTRIES PVT. LTD. 1st Floor ,113,Machar Tower 1st B Road Sardarpura Jodhpur 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 company with a world class resource and product base and strong foothold in the areas of Real 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 exciting journey in this new millennium.

Mission
Mission 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.

Values
Entrepreneurship 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 new opportunities 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 high potential.
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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. Trust The 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 our stakeholders 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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4.2 Business Areas

1. Real State and Construction 2. Mining and Minerals 3. Metals 4. Exports 5. Power and Energy

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5. AFFORDABLE HOUSING IN JODHPUR

Nine Globe Groups vision of Higher Focused Development extends to its 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/MIG JODHPUR, 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 technological issue 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. SURPURA 2. 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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6.3 Programmes of Affordable Housing

In order to meet the growing requirement of shortage of affordable housing in EWS/LIG categories, an initial target of construction of 1,25,000 houses for weaker sections, lower income groups and lower middle income groups in the next five years has been fixed. Based on the progress achieved, the target would be suitably revised subsequently. Out of this 50,000 houses would be constructed by

Rajasthan Housing Board and remaining 75000 houses would be constructed through Public Private Partnership as well as by Jaipur and Jodhpur Development Authority/Urban Improvement Trusts/Municipalities. Though the task is difficult and challenging, the state government endeavors to achieve it through a series of proactive measures and incentives to encourage low cost housing in the state to these sections of the society. These houses will be constructed under the following programmes & schemes: a) General/ Self financing/ Specific Registration Schemes of RHB. b) Affordable Housing in Partnership (*GOI scheme) c) Incentive Schemes for the private sector d) Housing under new township policy (proposed) e) Allotment/Regularization of plots to urban poor by urban local bodies. f) Affordable Housing in Partnership (*GOI scheme) g) Rental housing. h) Rajiv Avas Yojna. Construction of low cost houses under various schemes will be undertaken in all urban areas of Rajasthan, based on needs of the particular area. The urban areas of Rajasthan comprise of 05 Municipal Corporations (Nagar Nigam-Jaipur, Ajmer, Bikaner, Jodhpur & Kota), 9 Municipal Councils, 170 Municipal Boards (Nagar Palika) & one cantonment board.

(*GOI Government of India)

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7.AFFORDABLE HOUSING POLICY 2009

MODEL 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. developer would be allowed to On the balance land the MIG-A, MIG-B, HIG construct

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 eligible applicants. 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 MIGA category also applications would be invited by the nodal agency and allotments made accordingly, at the sale price worked out jointly by the developer & nodal agency. EWS/LIG flats should be in the G+3 format(G+2 may also be allowed in certain cases) while the the town/city. (EWS Economically Weaker Section, LIG - Lower Income Group) (MIG Middle Income Group, HIG Higher Income Group)
33

MIG-A, MIG-B & HIG-H flats can be

constructed up to any height as per prevailing building regulations in

(ii) Land use analysis Roads Parks Amenities 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 of 35% 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. Notes A. 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 to minimum 3.0 m by the local authority to achieve 50% ground coverage. C. Parking norms can also be relaxed suitably to achieve 50% Ground Coverage (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. EWS/LIG houses/flats 400 nos. EWS/LIG houses/flats 600 nos. & above - 01 year - 02 years - 03 years -20 to 25% -10% -10 to 15%

(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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(vii)

Regarding Subsidy Amount under GOI Schemes

Nodal agency/ULB* would also ensure that maximum subsidy amount is claimed from Government of India as per the guidelines of Affordable Housing under Partnership and other schemes of GOI. This means more than 40% constructed area will be for EWS/LIG flats & minimum EWS/LIG flats will be 300 Nos for every two acre of land. Part of the subsidy amount of EWS/LIGH flats will be adjusted against cost of external development of the area. Land cost is to be taken as ZERO by giving extra incentives by Government and cross subsidizing by developer. (viii) Sale Price of EWS flats:-

(A). Sale price of EWS flats will be calculated maximum@ Rs. 750.00 / sq.ft. It will be maximum Rs.2.40 lacs per flat with maximum super built up area of 325 sq.ft (B). Sale price of LIG flat:-Sale price of LIG flat will also be calculated @ Rs 750.00/sq ft. on the super built up area. It will be maximum Rs 3.75 lacs per flat with super built up area of 500 sq ft. Example EWS flat with super built up area of 325 sq feet would be constructed. The cost has been calculated @ Rs. 750/sq.ft. On super built up area as Rs. 2.40 lacs, which is payable to developer. Allowing subsidy amount of Rs. 0.50 lacs per house the sale price to the beneficiaries will be Rs. 1.90 lacs. LIG flat with super built up area of 500 sq.ft. Would be constructed. The sale price to be calculated @ Rs.750/sq.ft. On super built up area is Rs 3.75 lacs which is payable to the developer Allowing subsidy amount of Rs.0.50 lacs the sale price to the beneficiaries will be Rs.3.25 lacs.

(GOI Government of India,*ULB Urban Local Bodies)

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8. INCENTIVES
Incentives to be given to beneficiaries/developers by GOR so as to have cost of EWS/LIG to Affordable limits. (A) To beneficiaries

Land cost Ceiling cost of EWS flats Ceiling cost of LIG flats Super Built up area of EWS Super Built up area of LIG

-nil -Rs. 1.90 lacs -Rs. 3.25 lacs -325 sqft(2 rooms, kitchen, WC, bath) -500 sqft(3 rooms, kitchen, WC, bath & balcony)

Super Built up area of MIG-A -minimum 600 sq. ft. Bank loan to be made available to beneficiaries Stamp duty for EWS flat -Rs. 10.00 per flat Stamp duty for LIG flat -Rs. 25.00 per flat Interest subsidy of 5% in EMIs (up to loan of Rs. 1.00 lacs) under ISHUP* scheme.

(B)

To Developers

Cost of external development charges Building plan approval fee

Zero -Zero

Agriculture land use conversion charges -Zero Commercial area allowed -5% in EWS/LIG area (10% of the Total) Permitted to plan 60% of the area for MIG-A/MIG-B/HIG flats for cross subsidizing cost of low cost housing. After submission of plans for execution of scheme, developer will be allowed to start construction of houses after 30 days. (within building parameters) - Fast track approval. (GOR Government of Rajasthan) (*ISHUP Interest subsidy Scheme for Housing the Urban Poor)
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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 three years and should have a good track record of quality construction works. Total net worth (Reserve & Capital) of last three years (of the company or its sister concern or consortium) should be equivalent 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 at least 5.0 acres of land in the concerned town. The developer should have executed minimum 2.0 acres of Residential 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 LIMITEDTHE NODAL AGENCY

(EOI Expression of Interest, AVL Avas Vikas Limited) (ULB- Urban Local Bodies)
39

(QC Quality Control)

AVAS VIKAS LIMITED

A 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 Self Government Dec 2009 Government of Rajasthan. 4. Scheme_Guidelines_India_Infrastructure_Project_ Development_Fund-English. 5. Government of Rajasthan draft guideline PPP_ 2009. WEBLIKS 6. 7. 8. 9. www.nineglobe.com/business_infra_lig .html http://avlrajasthan.com/affordable housing_2009 http://ppp.rajasthan.gov.in/policy/draftpp ppolicy.pdf TIME* 8.00 PM 2:30 PM 10:00 PM DATE^ 1/10/11 10/10/11 20/10/11 21/10/11

http://ppp.rajasthan.gov.in/Rajasthan_17 6:00 1109.pdfhttp://ppp.rajasthan.gov.in/Rajas AM than_171109.pdf 4:00 PM 3:30 PM

10. http://www.indiahousing.com/affordablehousing-in-india/policy.html 11. http://www.censusindia.gov.in/2011prov- results/indiaatglance.html

21/10/11 12/11/11 12/11/11 28/11/11 28/11/11 30/11/11

12. http://www.census2011.co.in/census/distr 3:40 ict/438- jodhpur.html PM 13. http://timesofindia/rajastahn-adf 5:00 PM 14. http://www.pppinindia.com/financing.php 7:40 #1 PM 15. http://ibef/rejasthan_ppp2009.html 3:30 PM
(*IST Indian Standard Time, ^ - DD/MM/YY)
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