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Challenges , Opportunities and way forward -
Making Indian cities and citizens smart
INDEX OF
PRESENTATION
SUPPLY SIDE
Policy & Initiatives
DEMAND SIDE : 33 Smart City
Projects and policy
initiative :
Synergy with the City
Master Plan
Clarity of thought
Strategic Planning
approach
Smart City Investment trust (SMIT) :
Flexibility of a tree & rigid as a
stone.
Bangalore SMIT : Repository of
Green Transfer of Development
Rights and Non Recourse
Funding of Solar Park ,
Port Blair SMIT : Not vibrant
realty sector - Source of Fund
TDR -Transfer of Development Rights
Green TDR
1
2
3Green TDR – How will it work
Urban Renewal linked Zero
Marginal Cost Housing
Development Numbers
Barcelona Superblocks Example
of Fusing Grid Iron
Neighbourhoods of a Community
(16 Ha)
Greenfield Urban Retrofit - Case
Study of Action Area 1D (235.5
Ha) ; New Town Kolkata
Citizens Engagement
SCALE & TYPE of
engagement
Urban Morphology
Studies
CITY SMARTNESS INDICATOR -
Forum of Mentors & Innovators
3
4
5
6
8th Sept 2016
ANIRBAN CHOUDHURY
VP – INFRASTRUCTURE – AP ADE PARK
IoT India Congress – 2016 Bangalore
1
Challenges , Opportunities and way forward -
Making Indian cities and citizens smart
1. MOUD, GoI has selected 98 Cities to participate in the Smart Cities Challenge that is still under process of
closure. In the 1st round, 20 cities got selected for funding of projects and in the in the 2nd list of 1st round,
additional 13 cities got selected.
2. 2nd round of the competition has started, 11 more cities have been added to compete in this round, making it a
group of 108 cities. Bangalore has recently met the conditions precedent for participation, the city being capital
of a state and National IT hub, got dispensation to participate in the 2nd round.
3. Today there are 98 + 11 Cities are in the rat race to become a SMART CITY with extended participation of
MOUD, GoI. Out of these, 33 Cities have got selected in getting fund in the 1st round of the smart cities
challenge.
• Majority of the projects these cities have identified to execute in the next 2 years are low gestation, mid
sized capital incentive projects of area development (some pockets of the city) rather than pan city
initiatives.
DEMAND SIDE :
33 Smart City
8th Sept 2016
ANIRBAN CHOUDHURY
VP – INFRASTRUCTURE – AP ADE PARK
IoT India Congress – 2016 Bangalore
2
initiatives.
• These projects are not meant to be either Build to last Landmarks or assets of the city nor they are policy
initiatives that aid landmarks & built to last city assets.
• The 33 cities that cleared the 1st round do not have a vibrant realty sector to sustain the added cost due to
concession agreements / user charge these projects need to repay non recourse funding (if they receive).
• Therefore in the coming months either the Project Development Companies (SPV in MOUD Guidelines)
would find difficulty in financial closure.
• The major issue that these 33 cities would have to find for the "SMART CITY SPV options for quick
financial closure?”
• There has to be a well defined concession agreement for tenure beyond the Debt Tenure, to generate
attractive yield, secured revenue stream in case of Brownfield retrofits and customers ready to pay for
it? ".
Challenges , Opportunities and way forward -
Making Indian cities and citizens smart
1. Projects and policy initiative
• Synergy with the City Master Plan,
• Clarity in thought – The objective of the SMARTCITY is sustainable low carbon economy and resilience
against effect of Climate Change after we (a) Improve the quality and coverage of basic urban services; (b) Re
focus on Economic Development; (c) Social empowerment through extended peoples participation.
• These projects and policy initiatives needs to evolve with STRATEGIC PLANNING approach by CITY
LEADERSHIP, to avoid wasteful expenditure and duplication of efforts.
2. SMIT – Flexibility of a Tree but Rigid - city specific combination of ReIT & InIT for
• Bundling HIGH PRIORITY – LOW REVENUE projects with HIGH REVENUE lucrative projects
• provide non recourse debt ( long tenure- 12 to 20 yrs) funding for AREA DEV. & PAN CITY infrastructure.
• Initiate crowd funding from residents . For cities with less vibrant realty sector, securing of principal needs to be
done to attract risk averse investors.
DEMAND SIDE -
Critical Factors for
Success
8th Sept 2016 3
done to attract risk averse investors.
3. Transfer of Development Rights (TDR) to fund city’s infrastructure / resilience against effect of climate change
• TDR is an urban planning tool is in short supply in cities like Mumbai & Bangalore.
• Green TDR whereby the building would enjoy energy security & energy price stability.
4. Urban Renewal linked Zero Marginal Cost Housing.
5. Citizens Engagement to
• delineate neighbourhoods with identifiable neighbourhood boundary. Citizen perceived neighbourhood
boundary may differ from existing political wards.
• Once the neighbourhood delineation is done, the utilities, amenities inventory is prepared and citizens are
educated about existing & expected service level.
• Urban Morphology Studies
6. Diversify CITY’s economy , provide forum for Innovator & mentor to meet and work..
ANIRBAN CHOUDHURY
VP – INFRASTRUCTURE – AP ADE PARK
IoT India Congress – 2016 Bangalore
Challenges , Opportunities and way forward -
Making Indian cities and citizens smart
Before proposing any project with public money, its mandatory to undertake TECHNICAL & Environmental
diligence, to avoid wasteful expenditure on preparation of DPR and loss of face as proponent of legally not feasible
projects.
RBI Circular [ RBI 2005-06/407 - DBOD.BP.BC. 1711 /08.12.14/2005-06 dated June 12, 2006] expects
"Adherence to National Building Code (NBC) specifications necessary for lending Institutions". This circular is also
applicable for all publicly funded projects.
The National Building Code 2005 forbids Change in Landuse without change in statutory documents like City
master Plan, a regulatory document that is created under statutory laws like TOWN & COUNTRY PLANNING ACT'S
of the state/ UT.
The New Delhi Metro project had a very high time escalation due to litigation and resultant cost escalation.
The main reason for litigation is that DELHI METRO Right of way was not shown in the master Plan, relevant at the
time of land Acquisition.
Projects and policy initiative :
Synergy with the City Master Plan
1
8th Sept 2016 4
time of land Acquisition.
The shop keepers and large business houses argued to shift the alignment of NEW DELHI METRO as they
claim that their business is in synergy with the Delhi master Plan.
The Project Affected People demanded the compensation by Metro Corp to the land looser has to include
1. Cost of relocation of business to similar premises & location;
2. Cost of loss in business;
3. Perceived loss of business due to part acquisition of property.
[ Observations of Dr Sudhir Krishna (Retd IAS); Secretary MOUD when the Delhi Metro was under
execution]
It can be concluded that development of project that is not in synergy with site statutory land-use, is
fraught with dangers of time & cost escalations and loss of credibility.
ANIRBAN CHOUDHURY
VP – INFRASTRUCTURE – AP ADE PARK
IoT India Congress – 2016 Bangalore
Challenges , Opportunities and way forward -
Making Indian cities and citizens smart
Projects and policy initiative :
Clarity of Thought
SMART CITIES INITIATIVES
including AMRUT and DIGITAL INDIA
is an opportunity for us to make our
economy THIRD INDUSTRIAL
REVOLUTION (TIR) COMPLIANT.
Jeremy Rifkin is the author of "The
Third Industrial Revolution, How
Lateral Power is Transforming
Energy, the Economy, and the
World".
Mr. Rifkin is an adviser to the
European Union and to heads of
state around the world. EU started
1
8th Sept 2016 5
state around the world. EU started
the 2020 Renewable Energy Policy
and Smart Cities initiative was an
outcome of these interactions.
GoI india's SMART CITY INITIATIVE got inspiration from EU's policy and achievements. Its different as
our initiatives have additional agenda
a) Improve the quality and coverage of basic urban services
b) Economic Development
c) Social empowerment through extended peoples participation.
THE CITIES AND STAKEHOLDERS NEEDS TO REMAIN FOCUSSED BY NOT FORGETTING THE
CORE IDEAS.
ANIRBAN CHOUDHURY
VP – INFRASTRUCTURE – AP ADE PARK
IoT India Congress – 2016 Bangalore
Challenges , Opportunities and way forward -
Making Indian cities and citizens smart
Projects and policy initiative :
Clarity of Thought
Vision
Port Blair would become a resilient city
(against climate change effects); have a
sustainable low carbon economy, i.e.
Third Industrial Revolution Compliant by
year 2020, to be achieved through
Smart Urban Retrofits but not limited to
a) Introduction of retrofit measures in
city master plans;
b) Restructure the economic
infrastructure like ports, docks and
places of recreation/ tourism;
c) Work on it (restructuring of
1
8th Sept 2016 6
c) Work on it (restructuring of
economic infrastructure) with war
footing using internal accruals of
the city and funds;
d) Energy Security, price stability and
decentralised availability;
e) New but sustainable economic
activity;
f) Food Security, affordability and
distribution.
Source - SMART CITY PROPOSAL -
CITIZENS INITIATIVE FOR SMART PORT
BLAIR
OBJECTIVE & BENEFIT
ANIRBAN CHOUDHURY
VP – INFRASTRUCTURE – AP ADE PARK
IoT India Congress – 2016 Bangalore
Challenges , Opportunities and way forward -
Making Indian cities and citizens smart
Projects and policy initiative :
Strategic Planning Approach
City SWOT
SWOT analysis lead to strategic planning.
Strategic planning means researching and
deciding on a strategy for how to move forward,
leveraging on strengths / assets, weaknesses
, opportunities , and threats .
Strategic planning isn't as focused on maps,
physical conditions, design, relationships among
buildings and uses, and physical solutions.
The city plan is more concerned with setting forth
a vision and an ideal future state.
STRENGTHS / ASSETS of the city that
are helpful in achieving our objective
WEAKNESS may be harmful to our
objective, target of planning efforts
OPPORTUNITIES are favourable
conditions or possibilities created through hard
work or external conditions that are helpful in
1
8th Sept 2016 7
a vision and an ideal future state.
Strategic planning by nature involves identifying
what steps are needed to take us from here to
there
SMART CITY PROPOSAL is a strategic plan,
evolving out of Vision & Objective set forth by
Citizens if the Master Plan is inadequate in
addressing future needs.
work or external conditions that are helpful in
achieving our objective
THREATS are forces that are larger than
neighbourhood & communities., such as regional
economics, competition from other communities,
and changing social preferences or regulatory
issues. It is external conditions which could do
damage to our objective
ANIRBAN CHOUDHURY
VP – INFRASTRUCTURE – AP ADE PARK
IoT India Congress – 2016 Bangalore
Challenges , Opportunities and way forward -
Making Indian cities and citizens smart
Smart City Investment trust
(SMIT) : Flexibility of a tree &
rigid as a stone.
Infrastructure projects and initiatives are driven by debt up to 80% of the project cost. The debt tenures are 12 to 15
years and need to have a concession or levelised tariff of around 25 to 30 years.
These projects if done in PPP mode, the Private Partner lends the expertise in execution and operational credential.
The private partner would never lend its parent company bank-ability for raising single project long tenure debt, they
would prefer NON RECOURSE FUNDING for the project.
When we go for NON RECOURSE FUNDING, the project proponent need to have clear vision of revenue for debt
tenure (12 to 15 years) + a decade as these are front loaded capital investments.
There is also a need to secure the revenue stream assumed in Greenfield projects through bankable purchase
agreements /concession agreements with bulk customer/ distribution entity.
2
8th Sept 2016 8
agreements /concession agreements with bulk customer/ distribution entity.
In the case of Brownfield retrofit projects, there has to be risk assessment and cost of mitigation (re -insurance
included) done to justify the untangled revenue stream assumed.
Commercial and Development banks are have very high interest rates even for priority sector like urban
infrastructure. They also insist on balance sheet based funding instead of non-recourse funding.
Foreign debts needs to be hedged against currency fluctuations and it is not possible secure hedge greater than 3
years.
Therefore, we need to create a SEBI Compliant Infrastructure Investment Trust (InIT), called Smart City Investment
Trust (SMIT).
ANIRBAN CHOUDHURY
VP – INFRASTRUCTURE – AP ADE PARK
IoT India Congress – 2016 Bangalore
Challenges , Opportunities and way forward -
Making Indian cities and citizens smart
Bangalore SMIT : Repository of
Green Transfer of Development
Rights and Non Recourse
Funding of Solar Park
2
8th Sept 2016 9
ANIRBAN CHOUDHURY
VP – INFRASTRUCTURE – AP ADE PARK
IoT India Congress – 2016 Bangalore
Challenges , Opportunities and way forward -
Making Indian cities and citizens smart
Port Blair SMIT : Not vibrant realty
sector - Source of Fund
SMIT is going to be a Mezzanine Fund, similar to ICICI
Venture's Mezzanine Fund. It is the first fund in India to focus
on mezzanine finance opportunities.
Mezzanine financing is used mainly for Asset-backed
businesses such as real estate, infrastructure or equity
backed financing. Mezzanine finance typically is a structured
debt-like instrument, earning high yields, through a
combination of cash coupon and terminal yield and/or equity
linked components, such as warrants and optionally
convertibles.
Mezzanine finance often bridges the financing gap in an
Infrastructure SPV's capital structure and occupies a place
2
8th Sept 2016 10
Infrastructure SPV's capital structure and occupies a place
between senior debt and equity, both in security and total
returns.
It offers flexibility to meet both the investor's and
Infrastructure SPV's requirements and also provides medium
to long term capital without significant ownership dilution.
Probable size of Mezzanine Fund
• Gross Equity – Rs 960 Cr (Minimum);. Rs 1200 Cr (Maximum);
• Net Equity available for deployment with fund manager after investment in Kisan Vikas Patra – Rs 730 Cr
(Minimum);. Rs 850 Cr (Maximum);
• Debt (Scheme B) in Indian Rupee – Rs 1200 Cr.
• Working Capital Loan for payment of running bill of works under execution = Rs 300 Cr.
ANIRBAN CHOUDHURY
VP – INFRASTRUCTURE – AP ADE PARK
IoT India Congress – 2016 Bangalore
Challenges , Opportunities and way forward -
Making Indian cities and citizens smart
Port Blair SMIT : Not vibrant realty
sector - Source of Fund
Probable sources of fund for the mezzanine are –
Equity / VGF/ Grant ; MOUD; Govt of India under Smart Cities Initiative = Rs.300 Cr [ Formation of SMIT] +
Rs 200 Cr [ over 3 years, proportional to work progress of SPV’s] = Rs.500 Cr .
Secured Crowd Funded Equity (Scheme A) from residents of A & N Islands (Refer footnote for details) = Rs
100 Cr
• It will be similar to “Interest Free Loan Scheme” used for fund raising in development of Cochin International
Airport Ltd in the year 1993. The Crowd Funded Equity is a loan to SMIT by residents of Port Blair in
multiples of Rs 10000/-. It will be an interest free loan of Rs.10000/- for a period of 102 Months.
• SMIT would procure Kisan Vikas Patra of Rs 5000/- in the name of individual islander, that doubles up after a
tenure of100 Months. The certificates can only be encashed in event of the death of the holder or forfeiture by
a pledge or on the order of the courts.
• Though Kisan Vikas Patra does not offer any income tax benefits to the investor (SMIT) however, withdrawals
(Doners) are exempted from Tax Deduction at Source (TDS) upon maturity.
2
8th Sept 2016 11
(Doners) are exempted from Tax Deduction at Source (TDS) upon maturity.
• Donors would be made shareholders of SMIT and shares worth their donation would be issued to them,
without collecting share application money. Max no of investors required to raise Rs 100 Cr will be around 1
lakh. These one lakh investor’s principal is secured by Kisan Vikas Patra, and he also gets the benefit of
earnings from the Mezzanine Fund.
Secured Crowd Funded Equity (Scheme B) from Limited liability partnerships (LLP) or Trusts started by
Indian Citizens who are not residents of A & N Islands. These LLP or Trusts would have a resident of A & N
Islands as a minority partner / member. The prospectus and operational principles of the equity will be same as
that of Secured Crowd Funded Equity (Scheme A) . Total size of Secured Crowd Funded Equity (Scheme B) will
be between Rs 360 Cr to Rs 600 Cr.
Debt (Scheme A) from NBFC, Indian Financial Institutions, Insurance Companies, Indian Commercial banks.
Debt (Scheme B) in Indian Rupee. Foreign Financial institutions; Foreign Commercial banks providing the
financial support / suppliers credit to the Swiss Challenge Bidders/ BOOT Contractors/ system integrators.
ANIRBAN CHOUDHURY
VP – INFRASTRUCTURE – AP ADE PARK
IoT India Congress – 2016 Bangalore
Challenges , Opportunities and way forward -
Making Indian cities and citizens smart
TDR -Transfer of
Development Rights
A Transfer of Development Rights (TDR) is a certificate from the Municipal Corporation that the owner
of a property gets where his/her property (either part or whole) is reserved for the purpose of public
utilities such as road, garden, school etc.
Transfer of Development Rights (TDR) means making available certain amount of additional built up
area in lieu of the area relinquished or surrendered by the owner of the land. The owner of land either
use extra built up area for himself or transfer it to another in need of the extra built up area for an agreed
sum of money.
TDR is generated on plots reserved for public amenities like roads, playgrounds, gardens, schools,
markets etc. TDR is an effective tool to simultaneously limit development in valuable open space areas
while stimulating additional development in areas well suited to higher densities.
TDR for prospective development is granted, though it can be generated from preservation of privately
3
8th Sept 2016 12
TDR for prospective development is granted, though it can be generated from preservation of privately
owned past developments of heritage value.
Use of TDR as an urban planning instrument started more than a decade back in MUMBAI, followed by
Cyberabad Development authority and Bangalore through CDP-2005.
TDR in Bangalore, Karnataka was introduced in the year 2005. If a property obstructs the “Right of Way”
of an infrastructure project, the executing agency / the government can acquire your property by
compensating the land / property owner with TDR.
TDR issued is permission for built-up area one and a half times the property originally surrendered.
ANIRBAN CHOUDHURY
VP – INFRASTRUCTURE – AP ADE PARK
IoT India Congress – 2016 Bangalore
Challenges , Opportunities and way forward -
Making Indian cities and citizens smart
Green TDR3
8th Sept 2016 13
ANIRBAN CHOUDHURY
VP – INFRASTRUCTURE – AP ADE PARK
IoT India Congress – 2016 Bangalore
Challenges , Opportunities and way forward -
Making Indian cities and citizens smart
Green TDR : How will it work
OBJECTIVE Complement existing limited source of TDR and at the same time promote use of Solar
Power without subsidy at future solar parks, developed within 50 Km from the perimeter of BESCOM
command area, grid linked through National Transmission Line backbone of Power Grid Corporation of
India.
TARGET SEGMENT HT Consumers of Bangalore Development Authority or Local Planning authorities
within Bangalore, distributed power by BESCOM.
BDA & BMRDA area also has large demand for TDR. Ideal stake holder mix includes but not limited to HT
consumers of BESCOM in BDA & BMRDA.
OUTCOME of the project will be increase the urban density, optimize per capita utilization of urban
infrastructure and provide incentive to project developers to go for conventional energy bundled with
minimum 40 % renewable energy, i.e. Energy Security, price stability.
3
8th Sept 2016 14
minimum 40 % renewable energy, i.e. Energy Security, price stability.
POLICY MULTIPLIER EFFECT COMMAND AREA BANGALORE ELECTRICITY SUPPLY COMPANY
LIMITED - BESCOM distributes more than 50% of total power distributed in the state. Bangalore
contributes more than 40% to State Domestic Product of Karnataka, highest density of habitation & energy
consumption in the state.
G-TDR USER are Developer or owner of commercial & residential property in proposed clusters and
growth nodes of BMRDA or in designated growth corridors of BDA like Urban Redevelopment Zones; Ca-
Mixed Residential Area and other uses where additional FAR is allowed, gets an opportunity to use
GREEN TDR. It is similar to DRC referred in CDP 2015.
G-TDR CONSUMED / PROJECT will be between 0.125 (12.50 %) to 0.25 (25.00 % - minimum DRC
allowable for ZONE B of BDA i.e. the FAR shall not exceed 3.5 ( 350.00 %) in any case.
ANIRBAN CHOUDHURY
VP – INFRASTRUCTURE – AP ADE PARK
IoT India Congress – 2016 Bangalore
Challenges , Opportunities and way forward -
Making Indian cities and citizens smart
Urban Renewal linked Zero
Marginal Cost Housing
NO COST HOUSING is Cost Optimised Housing
Stock Created as a part of urban renewal process
It is a PUBLIC PRIVATE PARTNERSHIP where
around 60% of the Housing Stock would be sold
by the Private Partner at market price and this
would lead to either gentrification and or addition
of younger working population.
The existing residents would be accommodated in
33 % of the New Housing Stock and the balance 7
% of the Housing Stock would be available for NO
COST HOUSING and or AFFERMATIVE ACTION.
RESTRUCTURED NEIGHBOURHOOD ( 1/4TH TO 1/5TH
COMMUNITY) : LAYOUT POST LAND POOLING
Maximum allowable plot coverage is 60% and
FAR is 3.5.
4
8th Sept 2016 15
COST HOUSING and or AFFERMATIVE ACTION.
NO COST HOUSING is synonymous with
MARGINAL COST HOUSING built and provided
by a PRIVATE SECTOR PLAYER to either add a
TARGET GROUP making the neighbourhood
population well diversified, or add vibrancy to the
neighbourhood/ local /regional economy.
The tangible and intangible contribution of the
TARGET GROUP over a short / midterm rental
tenure (can be the lock in period) may sometimes
be greater than the COST OF HOUSING STOCK
FAR is 3.5.
In case of Layout/Group housing, minimum of
10 % of area for Park and 5% of area for C.A
shall be reserved and maintained by the
respective authorities.
For a Community Level project where an
existing neighbourhood of 48 x 150 SqM plots
( gross area of 1.2 Ha including municipality
owned street) is converted to a fused
neighbourhood
ANIRBAN CHOUDHURY
VP – INFRASTRUCTURE – AP ADE PARK
IoT India Congress – 2016 Bangalore
Challenges , Opportunities and way forward -
Making Indian cities and citizens smart
Urban Renewal linked Zero
Marginal Cost Housing :
Development Numbers
Sl.No Transformation of Neighbourhood – Grid Iron B2B
Plots
Fused Organic
0.00
No of Plots (Nos) 48.00 48.00
Minimum Plot Size (SqM) 150.00 150.00
Land Use SqM % SqM %
1.00 Gross Block Development 8640 100.00 8640 100.00
1.10 Net Residential 7200 83.33 7200 83.33
1.20 Internal Road (9M ROW) 1440 16.67% 810 9.38
1.30 Cluster Level Open Space - accessible to public 0 0.00% 630 7.29
1.40 Building Foot Print
1.41 Normal Low rise low density individual Housing - 60 % Plot coverage 4320 50.00%
1.42 Akrama sakrama Low rise low density Row Housing - 75 % Plot coverage 5400 62.50%
1.43 Group Housing - 1/3rd of plot area 2400 27.78
1.44 Utility & Civic Amenity 2400 27.78
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8th Sept 2016 16
1.44 Utility & Civic Amenity 2400 27.78
1.50 Green - landscaped area within plots, not accessible to public 2400 27.78
2.00 Utility M M /Plot M M /Plot
2.10 Sewer line- Backyard connection 360 7.50 340 7.08
2.20 Water main 528 11.00 472 9.83
3.00 Built Up Area SqM % SqM %
3.10 Normal 12960
3.20 Post Akrama Sakrama ( 20 % Increment) 10800
3.30
Gross Built Up area - Post Restructuring of neighbourhood ( Group Housing FAR
of 3.5, 150 m from metro station perimeter road)
33264
100.00
3.31 Existing Residents share 10800 32.47
3.32
Public Share ( In lieu of internal road converted to Cluster Level Open space) - for
EWS & affirmative action by BDA
2425
7.29
3.33 Developers Share - To sell at market prices 20038 60.24
ANIRBAN CHOUDHURY
VP – INFRASTRUCTURE – AP ADE PARK
IoT India Congress – 2016 Bangalore
Challenges , Opportunities and way forward -
Making Indian cities and citizens smart
Barcelona Superblocks Example of
Fusing Grid Iron Neighbourhoods
of a Community (16 Ha)
4
8th Sept 2016 17
ANIRBAN CHOUDHURY
VP – INFRASTRUCTURE – AP ADE PARK
IoT India Congress – 2016 Bangalore
Challenges , Opportunities and way forward -
Making Indian cities and citizens smart
Barcelona Superblocks Example of
Fusing Grid Iron Neighbourhoods
of a Community (16 Ha)
4
8th Sept 2016 18
ANIRBAN CHOUDHURY
VP – INFRASTRUCTURE – AP ADE PARK
IoT India Congress – 2016 Bangalore
Challenges , Opportunities and way forward -
Making Indian cities and citizens smart
Barcelona Superblocks Example of
Fusing Grid Iron Neighbourhoods
of a Community (16 Ha)
4
8th Sept 2016 19
ANIRBAN CHOUDHURY
VP – INFRASTRUCTURE – AP ADE PARK
IoT India Congress – 2016 Bangalore
Challenges , Opportunities and way forward -
Making Indian cities and citizens smart
Barcelona Superblocks Example of
Fusing Grid Iron Neighbourhoods
of a Community (16 Ha)
4
8th Sept 2016 20
ANIRBAN CHOUDHURY
VP – INFRASTRUCTURE – AP ADE PARK
IoT India Congress – 2016 Bangalore
Challenges , Opportunities and way forward -
Making Indian cities and citizens smart
Greenfield Urban Retrofit - Case
Study of Action Area 1D (235.5 Ha) ;
New Town Kolkata
hierarchy of built & open spaces; habitats starting
from neighbourhoods- community-Towns with
distinct boundary have been planned; socio-
economic infrastructure has been planned in early
2000 that even fulfil the changed requirements of
NBC2005 and UDPFI 2015.
Though the city has been planned for inclusion of
all class, creed & castes of the society, AA-1D has
been designed for a well-diversified population
(housing option) such that the SIMPSON Diversity
index > 0.75.
The hierarchy of roads and surface drainage were
designed in such a way that it's having an inversely
proportional relationship.
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8th Sept 2016 21
All the above resilience features were
designed and built in the early 2000, 1/2
decade before Draft LEED TND of
USGBC was published after 2005.
The structure of AA1D was designed to
be resilient as it was meant to promote (1)
Compact densification; (2) Scaling of a
Traditional neighbourhood; (3) Fine Grain
diversity
ANIRBAN CHOUDHURY
VP – INFRASTRUCTURE – AP ADE PARK
IoT India Congress – 2016 Bangalore
Challenges , Opportunities and way forward -
Making Indian cities and citizens smart
Citizens Engagement
SCALE & TYPE of engagement
In India officials, govt planners & academics seem not to like participatory planning and generation of projects for
Swiss challenge method.
Whatever was done to involve citizens for preparation of Smart City Proposals were like offering multiple choice
questions (Ticking Yes or No) and its statistical analysis, without educating the citizens about
Amenities they need to get as per national level for neighbourhood/ communities/ towns;
What are the amenities they are getting and deficit;
Service level benchmarks and the service level of amenity they already have but do not enjoy.
The idea behind / goal of CITIZENS INITIATIVE FOR SMART CITY PORT BLAIR is to
Practice participatory planning;
Change the focus from conventional development models;
Highlight the fact that there is a need to have customized local solution.
At the cluster level consisting of around 500 Households, At Community level engagement, we can start with
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At the cluster level consisting of around 500 Households,
the civic engagement can start with sharing or asking info
Day to day activities using existing internet/ intranet
groups, whatsapp / Google groups,
upcoming events within the cluster/ community /
neighbourhood. It can also include conventional
posters put up in notice boards.
Engagement in sharing of civic amenity and running of
the cluster facility management - for example
segregation of garbage at source, checks to keep an
eye on work of facility mgmt/ housekeeping staff as
well as compliance of agreed upon garbage
segregation at source modalities.
At Community level engagement, we can start with
weekly meetings of the 5 to 6 cluster leadership that
are part of the community for
Exchange of working notes;
Engagement with civic body & utility officials for
collective bargaining and
Create a virtual vote bank while interacting with
political functionary @ ward level. A minute of
meeting signed and maintained with details of
engagement will keep the officials at the toes.
ANIRBAN CHOUDHURY
VP – INFRASTRUCTURE – AP ADE PARK
IoT India Congress – 2016 Bangalore
Challenges , Opportunities and way forward -
Making Indian cities and citizens smart
Citizens Engagement
SCALE & TYPE of engagement
At Neighbourhood level engagement, the neighbourhood
level, the citizens need to hire urban planner ( pro bono
if possible) and other volunteer professionals to
Document the assets & utility of the
neighbourhood;
Check the quality of service levels of utility/
services/ infrastructure/ amenities and create a
quality of life shortfall matrix;
Prepare a remedial action plan in synergy with city
development plan.
Thereafter the neighbourhood & community’s
leadership work as a common stakeholder and
starts interaction with political/ civic
leadership.
I have perceived the above mentioned scale
and type of engagement using existing modes
of communication and technology for a
neighbourhood of 40000 persons in the take-
off stage.
There is a need to undertake Urban Morphology Study based on engagement of people at neighbourhood level.
5
8th Sept 2016 23
There is a need to undertake Urban Morphology Study based on engagement of people at neighbourhood level.
This is to understand the population’s behaviour. Citizens cannot be just a number.
We need to undertake Urban Morphology Studies for a planned future
The city of Port Blair is slowly losing its scale, character and ability to maintain a sense of continuity of
fundamental values and security to exist in a good living environment.
The city has failed to maintain settlement character due to reduced harmony between the built environment
and the people, necessary for a balanced community of the various socio-economic groups.
Co-operation within, lack of fraternity & tolerance has reduced self-help process within community.
ANIRBAN CHOUDHURY
VP – INFRASTRUCTURE – AP ADE PARK
IoT India Congress – 2016 Bangalore
Challenges , Opportunities and way forward -
Making Indian cities and citizens smart
Citizens Engagement
- Urban Morphology Studies
Introduction
URBAN MORPHOLOGY is the study of the form of human settlements and the process of their formation and
transformation.
The study seeks to understand the spatial structure and character of a metropolitan area, city, town or village
by examining the patterns of its component parts and the process of its development.
This can involve the analysis of physical structures at different scales as well as patterns of movement, land
use, ownership or control and occupation.
Typically, analysis of physical form focuses on street pattern, plot pattern and building pattern, sometimes
referred to collectively as urban grain.
Analysis of specific settlements is undertaken using cartographic sources and the process of development
evolves from comparison of historic maps.
Special attention is given to how the physical form of a city changes over time and to how different cities
compare to each other.
5
8th Sept 2016 24
compare to each other.
Road Ahead
At the pre takeoff stage of SMART CITY PROPOSALS, our understanding of the residents of Port Blair should
not be limited to demographic numbers. We need to undertake Urban Morphology Studies for a planned future
The city of Port Blair is slowly losing its scale, character and ability to maintain a sense of continuity of
fundamental values and security to exist in a good living environment.
The city has failed to maintain settlement character due to reduced harmony between the built environment
and the people, necessary for a balanced community of the various socio-economic groups.
Co-operation within, lack of fraternity & tolerance has reduced self-help process within community.
ANIRBAN CHOUDHURY
VP – INFRASTRUCTURE – AP ADE PARK
IoT India Congress – 2016 Bangalore
Challenges , Opportunities and way forward -
Making Indian cities and citizens smart
Citizens Engagement
- Urban Morphology Studies
As we progress
We are in the TAKEOFF STAGE of SMART CITY CHALLENGE BASED INITIATIVE of Government of India that is
going to mature and integrate with the EXISTING URBAN SYSTEM.
In the IMMEDIATE FUTURE, running concurrently with preparation of Strategy Plans, there would be a need
to undertake Urban Morphology Studies through extended participation of citizens, using IoT / IoE apps,
analytics including game theory.
The objective of URBAN MORPHOLOGY STUDIES should include study the urban pattern (fractals), density
and factors that help in the formation and sustenance of multiple community based neighbourhood of 30000
populations.
The outcome of the study will be identification of homogeneous multiple community neighbourhoods within
the urbanized areas of the city.
Citizens have core values-
Significant part of this subfield deals with the study of the social forms which are expressed in the physical layout of
5
8th Sept 2016
ANIRBAN CHOUDHURY
VP – INFRASTRUCTURE – AP ADE PARK
25
Significant part of this subfield deals with the study of the social forms which are expressed in the physical layout of
a city, and, conversely, how physical form produces or reproduces various social forms.
For each neighbourhood, there will be Value and Lifestyle based segmentation (VALS) of the population.
Based on the VALS, inadequacy of the social -economic - cultural infrastructure of the neighbourhood would
help to quantify quality of life.
Neighbourhoods strategies to improve quality of life (includes effect of population growth within a particular
VALS and scenario of migration from one VALS to another due to change in aspiration) needs to be prepared
It also complies with social -economic - cultural infrastructure norms of National Building Code 2005.
Challenges , Opportunities and way forward -
Making Indian cities and citizens smart
CITY SMARTNESS INDICATOR -
Forum of Mentors & Innovators
CREATIVITY happens when there is a MENTOR & INNOVATOR gets a place / forum to meet, it naturally
attracts DEDICATED , DISCIPLINED and DILIGENT workforce (Let's call it D3 - WORKFORCE).
Convergence of MENTOR, INNOVATOR & D3 WORKFORCE makes all types of organization, city and country
a great place.
A nation becomes GREAT NATION when there is convergence of a nation's democratic process -- with
economic policies.
When NATIONS DEMOCRATIC PROCESS is divorced from ECONOMIC POLICIES, we might have
development like SINGAPORE / CHINA.
This type of development does not promote CREATIVITY and OUT OF BOX INNOVATIONS.
Innovators are typically:
Are always taking in information (antennas up)
Are confident enough to experiment
Achievers are typically:
Have a "me first, my family first" attitude
Believe money is the source of authority
6
8th Sept 2016 26
Are confident enough to experiment
Make the highest number of financial
transactions
Are sceptical about advertising
Have international exposure
Are future oriented
Are self-directed consumers
Believe science and R&D are credible
Are most receptive to new ideas and
technologies
Enjoy the challenge of problem solving
Have the widest variety of interests and
activities.
Believe money is the source of authority
Are committed to family and job
Are fully scheduled
Are goal oriented
Are hardworking
Are moderate
Act as anchors of the status quo
Are peer conscious
Are private
Are professional
Value technology that provides a productivity
boost
ANIRBAN CHOUDHURY
VP – INFRASTRUCTURE – AP ADE PARK
IoT India Congress – 2016 Bangalore
Challenges , Opportunities and way forward -
Making Indian cities and citizens smart
CITY SMARTNESS INDICATOR -
Forum of Mentors & Innovators
6
8th Sept 2016 27
ANIRBAN CHOUDHURY
VP – INFRASTRUCTURE – AP ADE PARK
IoT India Congress – 2016 Bangalore
Challenges , Opportunities and way forward -
Making Indian cities and citizens smart
Anirban Choudhury is VP Infrastructure at AP Aerospace Defence Electronics Park
(www.apadepark.com).
Andhra Pradesh Aerospace & Defence Electronics Park (AP-ADE) is a joint venture of
Andhra Pradesh Industrial Infrastructural Development Corporation (APIIC), Government of
Andhra Pradesh and Vittal Innovation City (www.vittalinnovationcity.com) and APIIC.
He is a Civil Engineer & Town Planner with passion for integration of renewable energy
systems into real estate & urban development projects.
He has conceived, gone through design development & execution of large townships
(gross area >3000 Ha) and urban/ industrial infrastructure projects like layouts, IT SEZ,
Mechatronic warehouse based logistics hub, Industrial Estates/ Eco Industrial Parks.
Vittal Innovation City is into Eco-Industrial Park, promoting industrial cluster formation.
Speaker Brief
8th Sept 2016 28
DETAILED PROFILE :
http://in.linkedin.com/pub/anirban-choudhury/11/b63/143
EMAIL:
smarturbanretrofit@gmail.com
Mobile :
+919740478032
ANIRBAN CHOUDHURY
VP – INFRASTRUCTURE – AP ADE PARK
IoT India Congress – 2016 Bangalore
Challenges , Opportunities and way forward -
Making Indian cities and citizens smart
Major Works
http://www.slideshare.net/ANIRBANCHOU
DHURY1/the-future-of-housing-
regeneration-technology-form-and-
function-context-of-bangalore-india-5th-
nov-2015-a4
http://www.slideshare.net/ANIRBANCHO
UDHURY1/smart-retrofit-for-an-unsmart-
bangalore-city-ver-15-sept-2015-a5
http://www.slideshare.net/ANIRBANCHOUDHU
RY1/smart-city-proposal-citizens-initiative-for-
smart-portblair-final-lite-ver
Challenges , Opportunities and way forward -
Making Indian cities and citizens smart
Citizens initiative for Smart city
https://web.facebook.com/groups/SMARTCITYBANGALORE/ https://www.facebook.com/groups/SMARTPORTBLAIR/

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Challenges opportunities and way forward in making indian cities and citizens smart 29th august 2016

  • 1. Challenges , Opportunities and way forward - Making Indian cities and citizens smart INDEX OF PRESENTATION SUPPLY SIDE Policy & Initiatives DEMAND SIDE : 33 Smart City Projects and policy initiative : Synergy with the City Master Plan Clarity of thought Strategic Planning approach Smart City Investment trust (SMIT) : Flexibility of a tree & rigid as a stone. Bangalore SMIT : Repository of Green Transfer of Development Rights and Non Recourse Funding of Solar Park , Port Blair SMIT : Not vibrant realty sector - Source of Fund TDR -Transfer of Development Rights Green TDR 1 2 3Green TDR – How will it work Urban Renewal linked Zero Marginal Cost Housing Development Numbers Barcelona Superblocks Example of Fusing Grid Iron Neighbourhoods of a Community (16 Ha) Greenfield Urban Retrofit - Case Study of Action Area 1D (235.5 Ha) ; New Town Kolkata Citizens Engagement SCALE & TYPE of engagement Urban Morphology Studies CITY SMARTNESS INDICATOR - Forum of Mentors & Innovators 3 4 5 6 8th Sept 2016 ANIRBAN CHOUDHURY VP – INFRASTRUCTURE – AP ADE PARK IoT India Congress – 2016 Bangalore 1
  • 2. Challenges , Opportunities and way forward - Making Indian cities and citizens smart 1. MOUD, GoI has selected 98 Cities to participate in the Smart Cities Challenge that is still under process of closure. In the 1st round, 20 cities got selected for funding of projects and in the in the 2nd list of 1st round, additional 13 cities got selected. 2. 2nd round of the competition has started, 11 more cities have been added to compete in this round, making it a group of 108 cities. Bangalore has recently met the conditions precedent for participation, the city being capital of a state and National IT hub, got dispensation to participate in the 2nd round. 3. Today there are 98 + 11 Cities are in the rat race to become a SMART CITY with extended participation of MOUD, GoI. Out of these, 33 Cities have got selected in getting fund in the 1st round of the smart cities challenge. • Majority of the projects these cities have identified to execute in the next 2 years are low gestation, mid sized capital incentive projects of area development (some pockets of the city) rather than pan city initiatives. DEMAND SIDE : 33 Smart City 8th Sept 2016 ANIRBAN CHOUDHURY VP – INFRASTRUCTURE – AP ADE PARK IoT India Congress – 2016 Bangalore 2 initiatives. • These projects are not meant to be either Build to last Landmarks or assets of the city nor they are policy initiatives that aid landmarks & built to last city assets. • The 33 cities that cleared the 1st round do not have a vibrant realty sector to sustain the added cost due to concession agreements / user charge these projects need to repay non recourse funding (if they receive). • Therefore in the coming months either the Project Development Companies (SPV in MOUD Guidelines) would find difficulty in financial closure. • The major issue that these 33 cities would have to find for the "SMART CITY SPV options for quick financial closure?” • There has to be a well defined concession agreement for tenure beyond the Debt Tenure, to generate attractive yield, secured revenue stream in case of Brownfield retrofits and customers ready to pay for it? ".
  • 3. Challenges , Opportunities and way forward - Making Indian cities and citizens smart 1. Projects and policy initiative • Synergy with the City Master Plan, • Clarity in thought – The objective of the SMARTCITY is sustainable low carbon economy and resilience against effect of Climate Change after we (a) Improve the quality and coverage of basic urban services; (b) Re focus on Economic Development; (c) Social empowerment through extended peoples participation. • These projects and policy initiatives needs to evolve with STRATEGIC PLANNING approach by CITY LEADERSHIP, to avoid wasteful expenditure and duplication of efforts. 2. SMIT – Flexibility of a Tree but Rigid - city specific combination of ReIT & InIT for • Bundling HIGH PRIORITY – LOW REVENUE projects with HIGH REVENUE lucrative projects • provide non recourse debt ( long tenure- 12 to 20 yrs) funding for AREA DEV. & PAN CITY infrastructure. • Initiate crowd funding from residents . For cities with less vibrant realty sector, securing of principal needs to be done to attract risk averse investors. DEMAND SIDE - Critical Factors for Success 8th Sept 2016 3 done to attract risk averse investors. 3. Transfer of Development Rights (TDR) to fund city’s infrastructure / resilience against effect of climate change • TDR is an urban planning tool is in short supply in cities like Mumbai & Bangalore. • Green TDR whereby the building would enjoy energy security & energy price stability. 4. Urban Renewal linked Zero Marginal Cost Housing. 5. Citizens Engagement to • delineate neighbourhoods with identifiable neighbourhood boundary. Citizen perceived neighbourhood boundary may differ from existing political wards. • Once the neighbourhood delineation is done, the utilities, amenities inventory is prepared and citizens are educated about existing & expected service level. • Urban Morphology Studies 6. Diversify CITY’s economy , provide forum for Innovator & mentor to meet and work.. ANIRBAN CHOUDHURY VP – INFRASTRUCTURE – AP ADE PARK IoT India Congress – 2016 Bangalore
  • 4. Challenges , Opportunities and way forward - Making Indian cities and citizens smart Before proposing any project with public money, its mandatory to undertake TECHNICAL & Environmental diligence, to avoid wasteful expenditure on preparation of DPR and loss of face as proponent of legally not feasible projects. RBI Circular [ RBI 2005-06/407 - DBOD.BP.BC. 1711 /08.12.14/2005-06 dated June 12, 2006] expects "Adherence to National Building Code (NBC) specifications necessary for lending Institutions". This circular is also applicable for all publicly funded projects. The National Building Code 2005 forbids Change in Landuse without change in statutory documents like City master Plan, a regulatory document that is created under statutory laws like TOWN & COUNTRY PLANNING ACT'S of the state/ UT. The New Delhi Metro project had a very high time escalation due to litigation and resultant cost escalation. The main reason for litigation is that DELHI METRO Right of way was not shown in the master Plan, relevant at the time of land Acquisition. Projects and policy initiative : Synergy with the City Master Plan 1 8th Sept 2016 4 time of land Acquisition. The shop keepers and large business houses argued to shift the alignment of NEW DELHI METRO as they claim that their business is in synergy with the Delhi master Plan. The Project Affected People demanded the compensation by Metro Corp to the land looser has to include 1. Cost of relocation of business to similar premises & location; 2. Cost of loss in business; 3. Perceived loss of business due to part acquisition of property. [ Observations of Dr Sudhir Krishna (Retd IAS); Secretary MOUD when the Delhi Metro was under execution] It can be concluded that development of project that is not in synergy with site statutory land-use, is fraught with dangers of time & cost escalations and loss of credibility. ANIRBAN CHOUDHURY VP – INFRASTRUCTURE – AP ADE PARK IoT India Congress – 2016 Bangalore
  • 5. Challenges , Opportunities and way forward - Making Indian cities and citizens smart Projects and policy initiative : Clarity of Thought SMART CITIES INITIATIVES including AMRUT and DIGITAL INDIA is an opportunity for us to make our economy THIRD INDUSTRIAL REVOLUTION (TIR) COMPLIANT. Jeremy Rifkin is the author of "The Third Industrial Revolution, How Lateral Power is Transforming Energy, the Economy, and the World". Mr. Rifkin is an adviser to the European Union and to heads of state around the world. EU started 1 8th Sept 2016 5 state around the world. EU started the 2020 Renewable Energy Policy and Smart Cities initiative was an outcome of these interactions. GoI india's SMART CITY INITIATIVE got inspiration from EU's policy and achievements. Its different as our initiatives have additional agenda a) Improve the quality and coverage of basic urban services b) Economic Development c) Social empowerment through extended peoples participation. THE CITIES AND STAKEHOLDERS NEEDS TO REMAIN FOCUSSED BY NOT FORGETTING THE CORE IDEAS. ANIRBAN CHOUDHURY VP – INFRASTRUCTURE – AP ADE PARK IoT India Congress – 2016 Bangalore
  • 6. Challenges , Opportunities and way forward - Making Indian cities and citizens smart Projects and policy initiative : Clarity of Thought Vision Port Blair would become a resilient city (against climate change effects); have a sustainable low carbon economy, i.e. Third Industrial Revolution Compliant by year 2020, to be achieved through Smart Urban Retrofits but not limited to a) Introduction of retrofit measures in city master plans; b) Restructure the economic infrastructure like ports, docks and places of recreation/ tourism; c) Work on it (restructuring of 1 8th Sept 2016 6 c) Work on it (restructuring of economic infrastructure) with war footing using internal accruals of the city and funds; d) Energy Security, price stability and decentralised availability; e) New but sustainable economic activity; f) Food Security, affordability and distribution. Source - SMART CITY PROPOSAL - CITIZENS INITIATIVE FOR SMART PORT BLAIR OBJECTIVE & BENEFIT ANIRBAN CHOUDHURY VP – INFRASTRUCTURE – AP ADE PARK IoT India Congress – 2016 Bangalore
  • 7. Challenges , Opportunities and way forward - Making Indian cities and citizens smart Projects and policy initiative : Strategic Planning Approach City SWOT SWOT analysis lead to strategic planning. Strategic planning means researching and deciding on a strategy for how to move forward, leveraging on strengths / assets, weaknesses , opportunities , and threats . Strategic planning isn't as focused on maps, physical conditions, design, relationships among buildings and uses, and physical solutions. The city plan is more concerned with setting forth a vision and an ideal future state. STRENGTHS / ASSETS of the city that are helpful in achieving our objective WEAKNESS may be harmful to our objective, target of planning efforts OPPORTUNITIES are favourable conditions or possibilities created through hard work or external conditions that are helpful in 1 8th Sept 2016 7 a vision and an ideal future state. Strategic planning by nature involves identifying what steps are needed to take us from here to there SMART CITY PROPOSAL is a strategic plan, evolving out of Vision & Objective set forth by Citizens if the Master Plan is inadequate in addressing future needs. work or external conditions that are helpful in achieving our objective THREATS are forces that are larger than neighbourhood & communities., such as regional economics, competition from other communities, and changing social preferences or regulatory issues. It is external conditions which could do damage to our objective ANIRBAN CHOUDHURY VP – INFRASTRUCTURE – AP ADE PARK IoT India Congress – 2016 Bangalore
  • 8. Challenges , Opportunities and way forward - Making Indian cities and citizens smart Smart City Investment trust (SMIT) : Flexibility of a tree & rigid as a stone. Infrastructure projects and initiatives are driven by debt up to 80% of the project cost. The debt tenures are 12 to 15 years and need to have a concession or levelised tariff of around 25 to 30 years. These projects if done in PPP mode, the Private Partner lends the expertise in execution and operational credential. The private partner would never lend its parent company bank-ability for raising single project long tenure debt, they would prefer NON RECOURSE FUNDING for the project. When we go for NON RECOURSE FUNDING, the project proponent need to have clear vision of revenue for debt tenure (12 to 15 years) + a decade as these are front loaded capital investments. There is also a need to secure the revenue stream assumed in Greenfield projects through bankable purchase agreements /concession agreements with bulk customer/ distribution entity. 2 8th Sept 2016 8 agreements /concession agreements with bulk customer/ distribution entity. In the case of Brownfield retrofit projects, there has to be risk assessment and cost of mitigation (re -insurance included) done to justify the untangled revenue stream assumed. Commercial and Development banks are have very high interest rates even for priority sector like urban infrastructure. They also insist on balance sheet based funding instead of non-recourse funding. Foreign debts needs to be hedged against currency fluctuations and it is not possible secure hedge greater than 3 years. Therefore, we need to create a SEBI Compliant Infrastructure Investment Trust (InIT), called Smart City Investment Trust (SMIT). ANIRBAN CHOUDHURY VP – INFRASTRUCTURE – AP ADE PARK IoT India Congress – 2016 Bangalore
  • 9. Challenges , Opportunities and way forward - Making Indian cities and citizens smart Bangalore SMIT : Repository of Green Transfer of Development Rights and Non Recourse Funding of Solar Park 2 8th Sept 2016 9 ANIRBAN CHOUDHURY VP – INFRASTRUCTURE – AP ADE PARK IoT India Congress – 2016 Bangalore
  • 10. Challenges , Opportunities and way forward - Making Indian cities and citizens smart Port Blair SMIT : Not vibrant realty sector - Source of Fund SMIT is going to be a Mezzanine Fund, similar to ICICI Venture's Mezzanine Fund. It is the first fund in India to focus on mezzanine finance opportunities. Mezzanine financing is used mainly for Asset-backed businesses such as real estate, infrastructure or equity backed financing. Mezzanine finance typically is a structured debt-like instrument, earning high yields, through a combination of cash coupon and terminal yield and/or equity linked components, such as warrants and optionally convertibles. Mezzanine finance often bridges the financing gap in an Infrastructure SPV's capital structure and occupies a place 2 8th Sept 2016 10 Infrastructure SPV's capital structure and occupies a place between senior debt and equity, both in security and total returns. It offers flexibility to meet both the investor's and Infrastructure SPV's requirements and also provides medium to long term capital without significant ownership dilution. Probable size of Mezzanine Fund • Gross Equity – Rs 960 Cr (Minimum);. Rs 1200 Cr (Maximum); • Net Equity available for deployment with fund manager after investment in Kisan Vikas Patra – Rs 730 Cr (Minimum);. Rs 850 Cr (Maximum); • Debt (Scheme B) in Indian Rupee – Rs 1200 Cr. • Working Capital Loan for payment of running bill of works under execution = Rs 300 Cr. ANIRBAN CHOUDHURY VP – INFRASTRUCTURE – AP ADE PARK IoT India Congress – 2016 Bangalore
  • 11. Challenges , Opportunities and way forward - Making Indian cities and citizens smart Port Blair SMIT : Not vibrant realty sector - Source of Fund Probable sources of fund for the mezzanine are – Equity / VGF/ Grant ; MOUD; Govt of India under Smart Cities Initiative = Rs.300 Cr [ Formation of SMIT] + Rs 200 Cr [ over 3 years, proportional to work progress of SPV’s] = Rs.500 Cr . Secured Crowd Funded Equity (Scheme A) from residents of A & N Islands (Refer footnote for details) = Rs 100 Cr • It will be similar to “Interest Free Loan Scheme” used for fund raising in development of Cochin International Airport Ltd in the year 1993. The Crowd Funded Equity is a loan to SMIT by residents of Port Blair in multiples of Rs 10000/-. It will be an interest free loan of Rs.10000/- for a period of 102 Months. • SMIT would procure Kisan Vikas Patra of Rs 5000/- in the name of individual islander, that doubles up after a tenure of100 Months. The certificates can only be encashed in event of the death of the holder or forfeiture by a pledge or on the order of the courts. • Though Kisan Vikas Patra does not offer any income tax benefits to the investor (SMIT) however, withdrawals (Doners) are exempted from Tax Deduction at Source (TDS) upon maturity. 2 8th Sept 2016 11 (Doners) are exempted from Tax Deduction at Source (TDS) upon maturity. • Donors would be made shareholders of SMIT and shares worth their donation would be issued to them, without collecting share application money. Max no of investors required to raise Rs 100 Cr will be around 1 lakh. These one lakh investor’s principal is secured by Kisan Vikas Patra, and he also gets the benefit of earnings from the Mezzanine Fund. Secured Crowd Funded Equity (Scheme B) from Limited liability partnerships (LLP) or Trusts started by Indian Citizens who are not residents of A & N Islands. These LLP or Trusts would have a resident of A & N Islands as a minority partner / member. The prospectus and operational principles of the equity will be same as that of Secured Crowd Funded Equity (Scheme A) . Total size of Secured Crowd Funded Equity (Scheme B) will be between Rs 360 Cr to Rs 600 Cr. Debt (Scheme A) from NBFC, Indian Financial Institutions, Insurance Companies, Indian Commercial banks. Debt (Scheme B) in Indian Rupee. Foreign Financial institutions; Foreign Commercial banks providing the financial support / suppliers credit to the Swiss Challenge Bidders/ BOOT Contractors/ system integrators. ANIRBAN CHOUDHURY VP – INFRASTRUCTURE – AP ADE PARK IoT India Congress – 2016 Bangalore
  • 12. Challenges , Opportunities and way forward - Making Indian cities and citizens smart TDR -Transfer of Development Rights A Transfer of Development Rights (TDR) is a certificate from the Municipal Corporation that the owner of a property gets where his/her property (either part or whole) is reserved for the purpose of public utilities such as road, garden, school etc. Transfer of Development Rights (TDR) means making available certain amount of additional built up area in lieu of the area relinquished or surrendered by the owner of the land. The owner of land either use extra built up area for himself or transfer it to another in need of the extra built up area for an agreed sum of money. TDR is generated on plots reserved for public amenities like roads, playgrounds, gardens, schools, markets etc. TDR is an effective tool to simultaneously limit development in valuable open space areas while stimulating additional development in areas well suited to higher densities. TDR for prospective development is granted, though it can be generated from preservation of privately 3 8th Sept 2016 12 TDR for prospective development is granted, though it can be generated from preservation of privately owned past developments of heritage value. Use of TDR as an urban planning instrument started more than a decade back in MUMBAI, followed by Cyberabad Development authority and Bangalore through CDP-2005. TDR in Bangalore, Karnataka was introduced in the year 2005. If a property obstructs the “Right of Way” of an infrastructure project, the executing agency / the government can acquire your property by compensating the land / property owner with TDR. TDR issued is permission for built-up area one and a half times the property originally surrendered. ANIRBAN CHOUDHURY VP – INFRASTRUCTURE – AP ADE PARK IoT India Congress – 2016 Bangalore
  • 13. Challenges , Opportunities and way forward - Making Indian cities and citizens smart Green TDR3 8th Sept 2016 13 ANIRBAN CHOUDHURY VP – INFRASTRUCTURE – AP ADE PARK IoT India Congress – 2016 Bangalore
  • 14. Challenges , Opportunities and way forward - Making Indian cities and citizens smart Green TDR : How will it work OBJECTIVE Complement existing limited source of TDR and at the same time promote use of Solar Power without subsidy at future solar parks, developed within 50 Km from the perimeter of BESCOM command area, grid linked through National Transmission Line backbone of Power Grid Corporation of India. TARGET SEGMENT HT Consumers of Bangalore Development Authority or Local Planning authorities within Bangalore, distributed power by BESCOM. BDA & BMRDA area also has large demand for TDR. Ideal stake holder mix includes but not limited to HT consumers of BESCOM in BDA & BMRDA. OUTCOME of the project will be increase the urban density, optimize per capita utilization of urban infrastructure and provide incentive to project developers to go for conventional energy bundled with minimum 40 % renewable energy, i.e. Energy Security, price stability. 3 8th Sept 2016 14 minimum 40 % renewable energy, i.e. Energy Security, price stability. POLICY MULTIPLIER EFFECT COMMAND AREA BANGALORE ELECTRICITY SUPPLY COMPANY LIMITED - BESCOM distributes more than 50% of total power distributed in the state. Bangalore contributes more than 40% to State Domestic Product of Karnataka, highest density of habitation & energy consumption in the state. G-TDR USER are Developer or owner of commercial & residential property in proposed clusters and growth nodes of BMRDA or in designated growth corridors of BDA like Urban Redevelopment Zones; Ca- Mixed Residential Area and other uses where additional FAR is allowed, gets an opportunity to use GREEN TDR. It is similar to DRC referred in CDP 2015. G-TDR CONSUMED / PROJECT will be between 0.125 (12.50 %) to 0.25 (25.00 % - minimum DRC allowable for ZONE B of BDA i.e. the FAR shall not exceed 3.5 ( 350.00 %) in any case. ANIRBAN CHOUDHURY VP – INFRASTRUCTURE – AP ADE PARK IoT India Congress – 2016 Bangalore
  • 15. Challenges , Opportunities and way forward - Making Indian cities and citizens smart Urban Renewal linked Zero Marginal Cost Housing NO COST HOUSING is Cost Optimised Housing Stock Created as a part of urban renewal process It is a PUBLIC PRIVATE PARTNERSHIP where around 60% of the Housing Stock would be sold by the Private Partner at market price and this would lead to either gentrification and or addition of younger working population. The existing residents would be accommodated in 33 % of the New Housing Stock and the balance 7 % of the Housing Stock would be available for NO COST HOUSING and or AFFERMATIVE ACTION. RESTRUCTURED NEIGHBOURHOOD ( 1/4TH TO 1/5TH COMMUNITY) : LAYOUT POST LAND POOLING Maximum allowable plot coverage is 60% and FAR is 3.5. 4 8th Sept 2016 15 COST HOUSING and or AFFERMATIVE ACTION. NO COST HOUSING is synonymous with MARGINAL COST HOUSING built and provided by a PRIVATE SECTOR PLAYER to either add a TARGET GROUP making the neighbourhood population well diversified, or add vibrancy to the neighbourhood/ local /regional economy. The tangible and intangible contribution of the TARGET GROUP over a short / midterm rental tenure (can be the lock in period) may sometimes be greater than the COST OF HOUSING STOCK FAR is 3.5. In case of Layout/Group housing, minimum of 10 % of area for Park and 5% of area for C.A shall be reserved and maintained by the respective authorities. For a Community Level project where an existing neighbourhood of 48 x 150 SqM plots ( gross area of 1.2 Ha including municipality owned street) is converted to a fused neighbourhood ANIRBAN CHOUDHURY VP – INFRASTRUCTURE – AP ADE PARK IoT India Congress – 2016 Bangalore
  • 16. Challenges , Opportunities and way forward - Making Indian cities and citizens smart Urban Renewal linked Zero Marginal Cost Housing : Development Numbers Sl.No Transformation of Neighbourhood – Grid Iron B2B Plots Fused Organic 0.00 No of Plots (Nos) 48.00 48.00 Minimum Plot Size (SqM) 150.00 150.00 Land Use SqM % SqM % 1.00 Gross Block Development 8640 100.00 8640 100.00 1.10 Net Residential 7200 83.33 7200 83.33 1.20 Internal Road (9M ROW) 1440 16.67% 810 9.38 1.30 Cluster Level Open Space - accessible to public 0 0.00% 630 7.29 1.40 Building Foot Print 1.41 Normal Low rise low density individual Housing - 60 % Plot coverage 4320 50.00% 1.42 Akrama sakrama Low rise low density Row Housing - 75 % Plot coverage 5400 62.50% 1.43 Group Housing - 1/3rd of plot area 2400 27.78 1.44 Utility & Civic Amenity 2400 27.78 4 8th Sept 2016 16 1.44 Utility & Civic Amenity 2400 27.78 1.50 Green - landscaped area within plots, not accessible to public 2400 27.78 2.00 Utility M M /Plot M M /Plot 2.10 Sewer line- Backyard connection 360 7.50 340 7.08 2.20 Water main 528 11.00 472 9.83 3.00 Built Up Area SqM % SqM % 3.10 Normal 12960 3.20 Post Akrama Sakrama ( 20 % Increment) 10800 3.30 Gross Built Up area - Post Restructuring of neighbourhood ( Group Housing FAR of 3.5, 150 m from metro station perimeter road) 33264 100.00 3.31 Existing Residents share 10800 32.47 3.32 Public Share ( In lieu of internal road converted to Cluster Level Open space) - for EWS & affirmative action by BDA 2425 7.29 3.33 Developers Share - To sell at market prices 20038 60.24 ANIRBAN CHOUDHURY VP – INFRASTRUCTURE – AP ADE PARK IoT India Congress – 2016 Bangalore
  • 17. Challenges , Opportunities and way forward - Making Indian cities and citizens smart Barcelona Superblocks Example of Fusing Grid Iron Neighbourhoods of a Community (16 Ha) 4 8th Sept 2016 17 ANIRBAN CHOUDHURY VP – INFRASTRUCTURE – AP ADE PARK IoT India Congress – 2016 Bangalore
  • 18. Challenges , Opportunities and way forward - Making Indian cities and citizens smart Barcelona Superblocks Example of Fusing Grid Iron Neighbourhoods of a Community (16 Ha) 4 8th Sept 2016 18 ANIRBAN CHOUDHURY VP – INFRASTRUCTURE – AP ADE PARK IoT India Congress – 2016 Bangalore
  • 19. Challenges , Opportunities and way forward - Making Indian cities and citizens smart Barcelona Superblocks Example of Fusing Grid Iron Neighbourhoods of a Community (16 Ha) 4 8th Sept 2016 19 ANIRBAN CHOUDHURY VP – INFRASTRUCTURE – AP ADE PARK IoT India Congress – 2016 Bangalore
  • 20. Challenges , Opportunities and way forward - Making Indian cities and citizens smart Barcelona Superblocks Example of Fusing Grid Iron Neighbourhoods of a Community (16 Ha) 4 8th Sept 2016 20 ANIRBAN CHOUDHURY VP – INFRASTRUCTURE – AP ADE PARK IoT India Congress – 2016 Bangalore
  • 21. Challenges , Opportunities and way forward - Making Indian cities and citizens smart Greenfield Urban Retrofit - Case Study of Action Area 1D (235.5 Ha) ; New Town Kolkata hierarchy of built & open spaces; habitats starting from neighbourhoods- community-Towns with distinct boundary have been planned; socio- economic infrastructure has been planned in early 2000 that even fulfil the changed requirements of NBC2005 and UDPFI 2015. Though the city has been planned for inclusion of all class, creed & castes of the society, AA-1D has been designed for a well-diversified population (housing option) such that the SIMPSON Diversity index > 0.75. The hierarchy of roads and surface drainage were designed in such a way that it's having an inversely proportional relationship. 4 8th Sept 2016 21 All the above resilience features were designed and built in the early 2000, 1/2 decade before Draft LEED TND of USGBC was published after 2005. The structure of AA1D was designed to be resilient as it was meant to promote (1) Compact densification; (2) Scaling of a Traditional neighbourhood; (3) Fine Grain diversity ANIRBAN CHOUDHURY VP – INFRASTRUCTURE – AP ADE PARK IoT India Congress – 2016 Bangalore
  • 22. Challenges , Opportunities and way forward - Making Indian cities and citizens smart Citizens Engagement SCALE & TYPE of engagement In India officials, govt planners & academics seem not to like participatory planning and generation of projects for Swiss challenge method. Whatever was done to involve citizens for preparation of Smart City Proposals were like offering multiple choice questions (Ticking Yes or No) and its statistical analysis, without educating the citizens about Amenities they need to get as per national level for neighbourhood/ communities/ towns; What are the amenities they are getting and deficit; Service level benchmarks and the service level of amenity they already have but do not enjoy. The idea behind / goal of CITIZENS INITIATIVE FOR SMART CITY PORT BLAIR is to Practice participatory planning; Change the focus from conventional development models; Highlight the fact that there is a need to have customized local solution. At the cluster level consisting of around 500 Households, At Community level engagement, we can start with 5 8th Sept 2016 22 At the cluster level consisting of around 500 Households, the civic engagement can start with sharing or asking info Day to day activities using existing internet/ intranet groups, whatsapp / Google groups, upcoming events within the cluster/ community / neighbourhood. It can also include conventional posters put up in notice boards. Engagement in sharing of civic amenity and running of the cluster facility management - for example segregation of garbage at source, checks to keep an eye on work of facility mgmt/ housekeeping staff as well as compliance of agreed upon garbage segregation at source modalities. At Community level engagement, we can start with weekly meetings of the 5 to 6 cluster leadership that are part of the community for Exchange of working notes; Engagement with civic body & utility officials for collective bargaining and Create a virtual vote bank while interacting with political functionary @ ward level. A minute of meeting signed and maintained with details of engagement will keep the officials at the toes. ANIRBAN CHOUDHURY VP – INFRASTRUCTURE – AP ADE PARK IoT India Congress – 2016 Bangalore
  • 23. Challenges , Opportunities and way forward - Making Indian cities and citizens smart Citizens Engagement SCALE & TYPE of engagement At Neighbourhood level engagement, the neighbourhood level, the citizens need to hire urban planner ( pro bono if possible) and other volunteer professionals to Document the assets & utility of the neighbourhood; Check the quality of service levels of utility/ services/ infrastructure/ amenities and create a quality of life shortfall matrix; Prepare a remedial action plan in synergy with city development plan. Thereafter the neighbourhood & community’s leadership work as a common stakeholder and starts interaction with political/ civic leadership. I have perceived the above mentioned scale and type of engagement using existing modes of communication and technology for a neighbourhood of 40000 persons in the take- off stage. There is a need to undertake Urban Morphology Study based on engagement of people at neighbourhood level. 5 8th Sept 2016 23 There is a need to undertake Urban Morphology Study based on engagement of people at neighbourhood level. This is to understand the population’s behaviour. Citizens cannot be just a number. We need to undertake Urban Morphology Studies for a planned future The city of Port Blair is slowly losing its scale, character and ability to maintain a sense of continuity of fundamental values and security to exist in a good living environment. The city has failed to maintain settlement character due to reduced harmony between the built environment and the people, necessary for a balanced community of the various socio-economic groups. Co-operation within, lack of fraternity & tolerance has reduced self-help process within community. ANIRBAN CHOUDHURY VP – INFRASTRUCTURE – AP ADE PARK IoT India Congress – 2016 Bangalore
  • 24. Challenges , Opportunities and way forward - Making Indian cities and citizens smart Citizens Engagement - Urban Morphology Studies Introduction URBAN MORPHOLOGY is the study of the form of human settlements and the process of their formation and transformation. The study seeks to understand the spatial structure and character of a metropolitan area, city, town or village by examining the patterns of its component parts and the process of its development. This can involve the analysis of physical structures at different scales as well as patterns of movement, land use, ownership or control and occupation. Typically, analysis of physical form focuses on street pattern, plot pattern and building pattern, sometimes referred to collectively as urban grain. Analysis of specific settlements is undertaken using cartographic sources and the process of development evolves from comparison of historic maps. Special attention is given to how the physical form of a city changes over time and to how different cities compare to each other. 5 8th Sept 2016 24 compare to each other. Road Ahead At the pre takeoff stage of SMART CITY PROPOSALS, our understanding of the residents of Port Blair should not be limited to demographic numbers. We need to undertake Urban Morphology Studies for a planned future The city of Port Blair is slowly losing its scale, character and ability to maintain a sense of continuity of fundamental values and security to exist in a good living environment. The city has failed to maintain settlement character due to reduced harmony between the built environment and the people, necessary for a balanced community of the various socio-economic groups. Co-operation within, lack of fraternity & tolerance has reduced self-help process within community. ANIRBAN CHOUDHURY VP – INFRASTRUCTURE – AP ADE PARK IoT India Congress – 2016 Bangalore
  • 25. Challenges , Opportunities and way forward - Making Indian cities and citizens smart Citizens Engagement - Urban Morphology Studies As we progress We are in the TAKEOFF STAGE of SMART CITY CHALLENGE BASED INITIATIVE of Government of India that is going to mature and integrate with the EXISTING URBAN SYSTEM. In the IMMEDIATE FUTURE, running concurrently with preparation of Strategy Plans, there would be a need to undertake Urban Morphology Studies through extended participation of citizens, using IoT / IoE apps, analytics including game theory. The objective of URBAN MORPHOLOGY STUDIES should include study the urban pattern (fractals), density and factors that help in the formation and sustenance of multiple community based neighbourhood of 30000 populations. The outcome of the study will be identification of homogeneous multiple community neighbourhoods within the urbanized areas of the city. Citizens have core values- Significant part of this subfield deals with the study of the social forms which are expressed in the physical layout of 5 8th Sept 2016 ANIRBAN CHOUDHURY VP – INFRASTRUCTURE – AP ADE PARK 25 Significant part of this subfield deals with the study of the social forms which are expressed in the physical layout of a city, and, conversely, how physical form produces or reproduces various social forms. For each neighbourhood, there will be Value and Lifestyle based segmentation (VALS) of the population. Based on the VALS, inadequacy of the social -economic - cultural infrastructure of the neighbourhood would help to quantify quality of life. Neighbourhoods strategies to improve quality of life (includes effect of population growth within a particular VALS and scenario of migration from one VALS to another due to change in aspiration) needs to be prepared It also complies with social -economic - cultural infrastructure norms of National Building Code 2005.
  • 26. Challenges , Opportunities and way forward - Making Indian cities and citizens smart CITY SMARTNESS INDICATOR - Forum of Mentors & Innovators CREATIVITY happens when there is a MENTOR & INNOVATOR gets a place / forum to meet, it naturally attracts DEDICATED , DISCIPLINED and DILIGENT workforce (Let's call it D3 - WORKFORCE). Convergence of MENTOR, INNOVATOR & D3 WORKFORCE makes all types of organization, city and country a great place. A nation becomes GREAT NATION when there is convergence of a nation's democratic process -- with economic policies. When NATIONS DEMOCRATIC PROCESS is divorced from ECONOMIC POLICIES, we might have development like SINGAPORE / CHINA. This type of development does not promote CREATIVITY and OUT OF BOX INNOVATIONS. Innovators are typically: Are always taking in information (antennas up) Are confident enough to experiment Achievers are typically: Have a "me first, my family first" attitude Believe money is the source of authority 6 8th Sept 2016 26 Are confident enough to experiment Make the highest number of financial transactions Are sceptical about advertising Have international exposure Are future oriented Are self-directed consumers Believe science and R&D are credible Are most receptive to new ideas and technologies Enjoy the challenge of problem solving Have the widest variety of interests and activities. Believe money is the source of authority Are committed to family and job Are fully scheduled Are goal oriented Are hardworking Are moderate Act as anchors of the status quo Are peer conscious Are private Are professional Value technology that provides a productivity boost ANIRBAN CHOUDHURY VP – INFRASTRUCTURE – AP ADE PARK IoT India Congress – 2016 Bangalore
  • 27. Challenges , Opportunities and way forward - Making Indian cities and citizens smart CITY SMARTNESS INDICATOR - Forum of Mentors & Innovators 6 8th Sept 2016 27 ANIRBAN CHOUDHURY VP – INFRASTRUCTURE – AP ADE PARK IoT India Congress – 2016 Bangalore
  • 28. Challenges , Opportunities and way forward - Making Indian cities and citizens smart Anirban Choudhury is VP Infrastructure at AP Aerospace Defence Electronics Park (www.apadepark.com). Andhra Pradesh Aerospace & Defence Electronics Park (AP-ADE) is a joint venture of Andhra Pradesh Industrial Infrastructural Development Corporation (APIIC), Government of Andhra Pradesh and Vittal Innovation City (www.vittalinnovationcity.com) and APIIC. He is a Civil Engineer & Town Planner with passion for integration of renewable energy systems into real estate & urban development projects. He has conceived, gone through design development & execution of large townships (gross area >3000 Ha) and urban/ industrial infrastructure projects like layouts, IT SEZ, Mechatronic warehouse based logistics hub, Industrial Estates/ Eco Industrial Parks. Vittal Innovation City is into Eco-Industrial Park, promoting industrial cluster formation. Speaker Brief 8th Sept 2016 28 DETAILED PROFILE : http://in.linkedin.com/pub/anirban-choudhury/11/b63/143 EMAIL: smarturbanretrofit@gmail.com Mobile : +919740478032 ANIRBAN CHOUDHURY VP – INFRASTRUCTURE – AP ADE PARK IoT India Congress – 2016 Bangalore
  • 29. Challenges , Opportunities and way forward - Making Indian cities and citizens smart Major Works http://www.slideshare.net/ANIRBANCHOU DHURY1/the-future-of-housing- regeneration-technology-form-and- function-context-of-bangalore-india-5th- nov-2015-a4 http://www.slideshare.net/ANIRBANCHO UDHURY1/smart-retrofit-for-an-unsmart- bangalore-city-ver-15-sept-2015-a5 http://www.slideshare.net/ANIRBANCHOUDHU RY1/smart-city-proposal-citizens-initiative-for- smart-portblair-final-lite-ver
  • 30. Challenges , Opportunities and way forward - Making Indian cities and citizens smart Citizens initiative for Smart city https://web.facebook.com/groups/SMARTCITYBANGALORE/ https://www.facebook.com/groups/SMARTPORTBLAIR/