Public

Private Partnership (PPP)

Ministry of Housing and Urban Affairs

Government of India
21/09/2017
 Agenda

Ø  List of PPP Models

Ø  PPP Models on Government Land

Ø  PPP Models on Private Land

List of PPP PPP Models PPP Models

Models on Govt. land on Pvt. Land
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 List of PPP

P
Models

PPP Models on Government Land

UBLIC
RIVATE
ARTNERSHIP
MODELS
1 Government-land Based Subsidized Housing

2 Mixed Development Cross-subsidized Housing

3 Annuity Based Subsidized Housing
4 DBFMT : Annuity cum Capital
Grant based Subsidized Housing
PPP Models on Private Land

A Private-land based Subsidized Housing

(CLSS Scheme for EWS/LIG/MIG)
5 Direct Relationship Ownership Housing
6 Direct Relationship Rental Housing B Private-land Based Subsidized Housing
(AHP Scheme for EWS)
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 Model 1 - Government-land Based Subsidized Housing
Ac;vity Flowchart

Beneficiary Beneficiary to pay a

Land Identification predetermined amount to PA
Identification

Land Bid Parameters: Per Unit

Procurement Cost(Lowest lump sum amount)

Land Selection/Empanelment Construction of

Call for Bid
Provisioning of Private Developer Housing Project

Preparation of
Technical Guidelines Transfer of Housing
Units to PA by private
Beneficiary/ RWA to maintain Handover of Dwelling developer. PA to
the property Units to Beneficiary
pay* back at
predetermined cost

By Public Authority (PA)

By Private Developer Fixed Parameters: Predetermined number of units, area, time and specifications

By Beneficiary * The payment by PA to private developer shall be milestone based.

 Project Structure
List of PPP PPP Models
Models on Govt. land

Model 1 - Government-land Based Subsidized Housing

Public
•  Prepare technical guidelines
Authority
•  Set eligibility criteria for
•  Transparent SelecEon/ beneficiaries
Empanelment of developer •  Handover housing unit
•  Provide land for development
•  Milestone based payment •  Design, build and finance •  Pay EMI/Lump-sum
housing units
amount
•  Transfer housing unit
Private Maintain
Beneficiaries
housing unit
Developer
Repay the Provide
Bid parameter: Interest
loan subsidized loan
Per unit cost (lowest Central Nodal Agency
SubvenEon Financial
lump-sum amount)
(NHB/HUDCO) InsEtuEons
Monthly
reporEng
Fixed Parameters: Predetermined number of units, area, time and specifications 5
 Model 2 - Mixed Development Cross-subsidized Housing
Ac;vity Flowchart

Beneficiary Beneficiary to pay a

Land Identification predetermined amount to PA
Identification

Land Bid Parameters: Number of affordable units

Procurement provided @ rate fixed by State Nodal Agency

Land Selection/Empanelment Construction of

Call for Bid
Provisioning of Private Developer Housing Project

Preparation of
Technical Guidelines

Beneficiary/ RWA to maintain Handover of Affordable Transfer of Affordable

the property units to Beneficiary Housing units to PA

By Public Authority (PA)

By Private Developer
By Beneficiary Fixed Parameters: Predetermined area, time and specifications
Difference from last Model
 List of PPP PPP Models
Models on Govt. land
Project Structure
Model 2 - Mixed Development Cross-subsidized Housing
Public
•  Prepare technical guidelines
Authority •  Set eligibility criteria for
•  Transparent SelecEon/ beneficiaries
Empanelment of developer •  Handover housing unit
•  Provide land for development •  Design, build and finance
housing units •  Pay EMI/Lump-sum
•  Transfer affordable
amount
housing unit
Private Maintain
Beneficiaries
housing unit
Developer
Repay the Provide
Develops and leases high-end Interest
loan subsidized loan
housing/ commercial development SubvenEon
Central Nodal Agency Financial
Bid parameter:
Number of affordable (NHB/HUDCO) InsEtuEons
Monthly
units to be provided on reporEng
given plot at the rate fixed
by the State Nodal Agency Fixed Parameters: Predetermined area, time and specifications 7
Model 3 - Annuity Based Subsidized Housing
Ac;vity Flowchart

Beneficiary Beneficiary to pay a

Land Identification predetermined amount to PA
Identification

Land Bid Parameters: Lowest Annuity Payment with

Procurement NPV calculated at highest MCLR by SBI

Land Selection/Empanelment Construction of

Call for Bid
Provisioning of Private Developer Housing Project

Preparation of
Technical Guidelines
By Public Authority (PA)
By Private Developer
By Beneficiary
Difference from last Model
Handover of Housing
Units to Beneficiary
Maintenance of the
through PA.
Property by developer
Developer to receive
annuity payment
Fixed Parameters: Predetermined number of units, area, time and specifications
* The lump sum payment/EMI received by PA shall be escrowed to Private Developer
 List of PPP
Models
PPP Models
on Govt. land Project Structure
Model 3 - Annuity Based Subsidized Housing

•  Prepare technical guidelines Public

•  Transparent SelecEon/Empanelment Authority •  Set eligibility criteria for
of developer
•  Provide land for development beneficiaries
•  Pay annuity amount upto 10 years •  Handover housing unit

•  Pay EMI/Lump-sum
•  Design, build and finance
housing units
amount
•  Transfer housing unit
Private
Beneficiaries
Developer
Repay the Provide
Maintain Interest
loan subsidized loan

housing unit SubvenEon
Central Nodal Agency Financial
Bid parameter: (NHB/HUDCO) InsEtuEons
Lowest Annuity Payment Monthly
with NPV calculated at reporEng
highest MCLR by SBI Fixed Parameters: Predetermined number of units, area, time and specifications 9
Model 4 – DBFMT : Annuity cum Capital Grant based Subsidized Housing
Ac;vity Flowchart
Beneficiary Beneficiary to pay a
Land Identification predetermined amount to PA
Identification
Upfront construction
Land cost to be paid to
Procurement developer

Land Selection/Empanelment Construction of

Call for Bid
Provisioning of Private Developer Housing Project

Preparation of Bid Parameters:

Technical Guidelines •  Lowest Annuity Payment
with NPV calculated at Handover of Housing
highest MCLR by SBI and Units to Beneficiary
Maintenance of the
fixed upfront grant* through PA.
Property by developer
Or Developer to receive
•  Lowest Upfront Grant with annuity payment
By Public Authority (PA) fixed annuity

By Private Developer
By Beneficiary Fixed Parameters: Predetermined number of units, area, time and specifications

Difference from last Model *Capital grants payment to the private developer to be milestones-based.
 List of PPP PPP Models
Models on Govt. land
Project Structure
Model 4 – DBFMT : Annuity cum Capital Grant based Subsidized Housing
•  Prepare technical guidelines
•  Transparent SelecEon/Empanelment of
Public
developer Authority
•  Provide land for development •  Set eligibility criteria for
•  Pay upfront grant and long-term annuity beneficiaries
•  Handover housing unit

•  Design, build and finance •  Pay EMI/Lump-sum

housing units
amount
•  Transfer housing unit
Private
Beneficiaries
Developer
Repay the Provide
Maintain Interest
loan subsidized loan
housing unit SubvenEon
Bid parameter: Central Nodal Agency Financial
•  Lowest Annuity Payment with NPV
calculated at highest MCLR by SBI (NHB/HUDCO) Monthly
InsEtuEons
Or
and fixed upfront grant
reporEng
•  Lowest Upfront Grant with fixed Fixed Parameters: Predetermined number of units, area, time and specifications11
annuity
Model 5 – Direct Relationship Ownership Housing
Ac;vity Flowchart

Beneficiary
Land Identification
Identification

Land Bid Parameters: Per Unit Cost

Procurement (Lowest EMI/Lump Sum)

Land Selection/Empanelment Construction of

Call for Bid
Provisioning of Private Developer Housing Project

Preparation of
Technical Guidelines
Handover of Housing
Maintenance of the Units to beneficiary.
Property by developer Beneficiary to pay to
private developer
By Public Authority (PA)
By Private Developer
By Beneficiary Fixed Parameters: Predetermined number of units, area, time and specifications
Difference from last Model
 PPP Models

Project Structure
List of PPP on Govt.
Models
land

Model 5 – Direct Relationship Ownership Housing

Public
Authority
•  Prepare technical guidelines •  Set eligibility criteria for
•  Transparent SelecEon/ beneficiaries
Empanelment of developer •  Handover housing unit
•  Provide land for development •  Design, build and finance
housing units
•  Transfer housing unit

Private
Beneficiaries
Developer •  Pay EMI/Lump-sum
amount
Repay the Provide
Maintain Interest
loan subsidized loan
housing unit SubvenEon
Central Nodal Agency Financial
(NHB/HUDCO) InsEtuEons
Monthly
Bid parameter:
Per unit cost (lowest EMI
reporEng
or lowest lump sum) Fixed Parameters: Predetermined number of units, area, time and specifications 13
Model 6 – Direct Relationship Rental Housing
Ac;vity Flowchart

Beneficiary
Land Identification
Identification

Land Bid Parameters: Per

Procurement Unit Cost (Lowest Rent)

Land Selection/Empanelment Construction of

Call for Bid
Provisioning of Private Developer Housing Project

Preparation of
Technical Guidelines
Maintenance of the
By Public Authority (PA)
By Private Developer
By Beneficiary
Difference from last Model
Housing Units rented
to beneficiary.
Handover Dwelling Units
Beneficiary to pay
Property used for Rental Purpose
rent to private
developer
Fixed Parameters: Predetermined number of units, area, time and specifications
 PPP Models
List of PPP
Models
on Govt.
land Project Structure
Model 6 – Direct Relationship Rental Housing

Public
Authority
•  Prepare technical guidelines •  Set eligibility criteria for
•  Transparent SelecEon/ beneficiaries
Empanelment of developer •  Handover housing unit
•  Provide land for development •  Design, build and finance
housing units
•  Transfer housing unit

Private
Beneficiaries
Developer •  Pay monthly rent
amount
Maintain
housing unit
Bid parameter:
Fixed Parameters: Predetermined number of units, area, time and specifications
Per unit cost (lowest Rent)

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 Model A - Private-land based Subsidized Housing (Taking advantage of CLSS)
Ac;vity Flowchart

Beneficiary Beneficiary to pay a predetermined

Land Provided Identification amount (Lump sum/ EMI) to Developer
by Developer

Land
Assessment by PA

Land Financial Incentives, Subsidies & Designing & Construction of

Provisioning Stamp Duty Exemptions by PA Housing Project by Developer

Preparation of
Technical Guidelines

Handover of Housing
Maintenance of the
Unit to Beneficiary by
Property by Beneficiary
Developer

By Public Authority (PA)

By Private Developer
By Beneficiary
List of PPP
Models
PPP Models
on Govt. land
PPP Models
on Pvt. Land
Project Structure
Model A - Private-land based Subsidized Housing (Taking advantage of CLSS)

•  Technical guidelines as per PMAY

•  Provide exempEons and State/Public
financial incenEves
•  Provide single window clearance
Authority •  Facilitate & organise beneficiaries selecEon in
tune with eligibility criteria of PMAY(U)
•  Organise meet between Bankers, Beneficiaries &
Builders
•  Monitor physical and financial progress of project

Private Pay EMI/Lump-sum amount Beneficiaries Maintain

Developer (EWS/LIG) housing unit
Land to be provided by private developer
Design, build, finance and transfer housing units Repay the loan Provide subsidized
Interest SubvenEon loan*
Central Nodal Agency Financial
(NHB/HUDCO) Monthly reporEng InsEtuEons

*CLSS benefits will be available to EWS, LIG and MIG beneficiaries as per the PMAY(U) Guidelines. 17
Model B - Private-land Based Subsidized Housing (AHP Scheme for EWS)
Ac;vity Flowchart
Beneficiary Beneficiary to pay a predetermined
Land Provided Identification amount (Lump sum/ EMI) to Developer
by Developer

Land
Assessment by PA

Land Financial Incentives, Subsidies & Designing & Construction of

Provisioning Stamp Duty Exemptions by PA Housing Project by Developer

Preparation of
Technical Guidelines
& Rs 1.5 Lac
assistance from Handover of Housing
Maintenance of the
Central Govt. Unit to Beneficiary by
Property by Beneficiary
Developer

By Public Authority (PA)

By Private Developer
By Beneficiary
 Project Structure
List of PPP PPP Models PPP Models
Models on Govt. land on Pvt. Land

Model B - Private-land Based Subsidized Housing (AHP Scheme for EWS)

Central Govt.

•  Technical guidelines as per PMAY

Provide 1.5 lac per EWS house capital subsidy*
•  Transparent SelecEon/Empanelment of State/Public
developer •  Fix sale price of dwelling unit
•  Provide exempEons and Authority •  Facilitate & organise beneficiaries selecEon in tune
financial incenEves with eligibility criteria of PMAY(U); organise meet
•  Provide single window clearance between Bankers, Beneficiaries & Builders
•  Monitor physical and financial progress of project

Private Pay EMI/Lump-sum amount Beneficiaries Maintain

Developer (EWS) housing unit

Repay the loan Provide loan
*Assistance provided only if at least 35% of the houses in the project are for EWS category.
The State Government shall give a guarantee to the Central Government that the 1.5 lac subsidy will be
Financial
used only for AHP and in case of default, there shall be total reimbursement of the same along with InsEtuEons 19
interest.
 Back
Public AuthoriEes Role
Exemp;ons/Concessions Financial Incen;ves Single Window Clearance*
•  Stamp duty exempEons •  State Subsidy •  Provision of type designs for
EWS/LIG/MIG units as per
•  External/ Internal Development •  Infrastructure Status local climaEc condiEons
Charges (EDC/IDC) concessions
•  Benefit of SecEon 80 IBA of IT Act 1961** •  Provision of fast track
•  Certain percentage of permissible approval within 30 days and
FAR/FSI may be made free for •  Reduced fee and charges for usage of
thereupon deemed
provision of amenity/ commercial innovaEve/ alternate/ prefab technologies approval to such projects
development and materials

**For Model B - Private-land Based Subsidized Housing (AHP Scheme for EWS), the infrastructure status benefit under Sec 80 IBA of IT Act
1961 will be applicable only if the project has 50% of FAR/FSI dedicated to dwelling units of minimum 60 sq. m. carpet area. Therefore, apart
from 35% of houses for EWS, the project would be required to construct remaining percent of FAR in either the EWS/LIG category to qualify for
the above benefits.
For such projects, a combinaPon of Model A and B can also be worked out.

* In the online process of building plan sancPoning, an opPon may be created for the developer to get single window clearance and other
incenPves, through automaPc route, as prescribed in the PMAY guidelines. This will also enable the States in idenPfying a PMAY (U) project
and creaPng a database of the same. In turn, it would also help in branding the scheme.
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THANK YOU!

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 Key features of Guidelines for PPP on private land
§  In Model A (taking advantage of CLSS) the banks, extending loans to the applicants
as per the PMAY (U) Guidelines, facilitated by the public authority will establish the
Beneficiary Iden;fica;on eligibility of beneficiaries.
§  In Model B (AHP scheme for EWS), allotment of houses to idenEfied eligible EWS
beneficiaries in AHP projects should be made, following a transparent procedure as
approved by SLSMC, and beneficiaries selected should be part of HFAPoA.

§  For Model B (AHP scheme for EWS): The exisEng insEtuEonal mechanism of SLSMC
Ins;tu;onal Mechanism as per Para 16.4 (for approval of projects) and SLAC as per Para 16.6 (for techno-
economic appraisal of DPRs submihed by ULBs/ ImplemenEng Agencies) of the
PMAY (U) Guidelines will conEnue to accord approval to DPRs.

§  For Model B (AHP scheme for EWS): The appropriate authority in State, which is
Fixing Sale Price of DU currently fixing the sale price of AHP projects presently being developed with ULBs/
parastatals under PMAY (U) Mission, would conEnue to do so in this model as well.
§  For projects using a combinaEon of Model A and B: As per Scheme Guidelines, a
private developer can determine the sale price of LIG or MIG units as a method of
cross-subsidisaEon in lieu of price fixed for EWS units by State agency.
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