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THEME PAPER

of new projects. Lastly, urban regeneration projects. Different hub for corporate and
planning and infrastructure value capture mechanisms have commercial activities, offers
development strategies are used also been successfully residential complexes, luxury
as a resource by the local bodies implemented in India. However, hotels, convention centre, etc
to come out of the vicious circle while the land was optimally along with commercial
of 'no resources- no used as a resource to fund the buildings. The Capital value has
development- no value projects, VIF proposes a method seen an increase of more than
increment- no tax- no that not only finances the project 100% in the last decade. Many
development' (Malhotra 2020). but also keeps the resources businesses, both Indian as well
VIF is a measure that can be available intact with the as MNCs, have shifted to the
used to secure a loan, leverage government. The following case BKC because of its standing as
an up-front investment, promote studies are based on the Value an upscale commercial and
a public-private-partnership Capture Finance Policy residential hub of the city. BKC
(PPP) or undertake development Framework, Ministry of Urban is one of the most expensive
on the 'pay-as-you-go' principle. Development, Government of office complexes and is
It creates hope for the cash- India. strategically located for easy
starved local bodies which can Bandra Kurla Complex (BKC) access from most parts of the
rely on robust development Land Auction in Mumbai, city.
strategy and fiscal discipline to Maharashtra In the initial stages of the project,
develop or renew cities. VIF is a BKC is one of the most in order to give a boost to the
self-paying or even surplus successful value capture financial resources, Mumbai
generating mechanism financing techniques applied in Metropolitan Regional Development
especially in cities with rising India for urban development. It Authority (MMRDA) developed
property values and a rising was developed with an aim to the BKC site and handed a
pace of urbanisation. Overall, create an alternate central portion of it to the developers.
this financial tool is expected to business district in Mumbai. The The developers were supposed
ease out the situation for ULBs project aimed to facilitate the to pay annual rent and
for urban planning and planned demands of the rising development fees to the
financing of cities when their population and also to take off Authority. This system
budgets are extremely tight and the congestion burden from continued till 2003 after which
the cities are unable to generate South Mumbai. The project also Mumbai Metropolitan Regional
current revenue surplus to planned to raise financial Development Authority (MMRDA)
leverage investment. In the next resources to fund regional adopted the policy of leasing the
section, we study the infrastructure requirement. A land for a long-term (80 years).
applicability of the model. special planning authority was The developers were allowed to

LESSONS FROM PAST set up in 1977 for the conduct high-density develop-
ment in the area. Along with
PRACTICES development of a complex. The
authority paid Rs. 956 crore for leasing, MMRDA has sold
In the last two decades, various portions of the land from time to
208 hectares of land to the state
initiatives have been taken by time. An upward rise in the land
government, out of which 121
central and state governments in price has been observed in the
hectares was proposed to be
India to finance infrastructure various auctioning lots
developed as a financial and
development and urban conducted by MMRDA. The
business centre. The complex, a

April 2021 Volume 22 No. 1- SHELTER 25