2 PPP Models for Private Investments on Private Lands
These include:
Extending central assistance of ₹ 2.50 lakh per house as interest subsidy on bank loans as upfront payment under the Credit Linked Subsidy Component (CLSS) component of Pradhan Mantri Awas yojana (Urban) .
Central assistance of ₹ 1.50 lakh per house to be built on private lands, if beneficiaries do not intend to take bank loans.
6 PPP Promoting Affordable Housing with Private Investments on Government Lands
The six models using government lands are:
1. DBT Model
Allows private builders to design, build and transfer houses built on government lands to public authorities.
Government land is allocated based on the least cost of construction.
Payments is made based on progress of project on reaching milestones
Buyers finally pay to the Government.
2. Mixed Development Cross-Subsidized Housing
Government land is allotted based on number of affordable houses to private builders- cross subsidizing this segment from revenues from high-end house building or commercial development.
3. Annuity Based Subsidized Housing
Builders invest against deferred annuity payments by the Government with land allocation based on unit cost of construction.
4. Annuity-Cum-Capital Grant Based Affordable Housing
Besides annuity payments this model pays builders a share of project cost upfront.
5. Direct Relationship Ownership Housing
Unlike government mediated payments this option allows promoters to directly deal with buyers and recover costs. Allocation of public land is again based on unit cost of construction.
6. Direct Relationship Rental Housing
Recovers the costs by builders is through rental incomes from the houses built on government lands.
Under these six Government land based PPP models, beneficiaries can now avail central assistance of ₹ 1.00 to ₹ 2.50 lakh per house provisioned under different components of PMAY (Urban) .
New PPP Policy
Provides central assistance of up to ₹ 2.50 lakh per house for building houses on private lands.
Only applicable to affordable housing built by private builders even on private lands.
Advantages of New PPP Policy
Opens immense potential for private investments in affordable housing projects on government lands in urban areas.
Distributes risks among the government, developers and financial institutions allowing leverage of utilized and un-utilized private and public lands towards meeting the Housing for All target by 2022.