Hyderabad: The AP government will be using a strategy to monetise real estate and seed funding to finance the construction of the state capital, earn income for the government and bear the capital expenditure.
Real estate monetisation will be on the lines of the Singapore experiment, where the island-nation earned billions of dollars by selling real estate assets after cleaning up the riverfront and selling the reclaimed land.
The plan, mentioned by Telugu Desam leader Nara Lokesh in his interaction with Deccan Chronicle on Friday last week, is mentioned in the Expression of Interest to select the project consultant to build the capital.
Zoning regulations will also be introduced to avoid haphazard growth in the capital city.
The EoI, drawn up by the Infrastructure Corporation of AP, says, “Real estate monetisation strategy based on high-level population growth forecast, optimal real estate assets divided into mass versus premium, residential versus commercial, zoning norms will be used for income generation.
Value capture for the government from various area development interventions through innovative urban planning policies.”
The EoI also mentions the land procurement plan that unlocks land for public infrastructure at the lowest cost and through mutually beneficial partnerships with the land owners. It offers options for various PPP models for infrastructure.
It identifies potential sources of finance for seed funding through identification of the types of investors, their typical characteristics, preferences and risk return profiles. Seed fund is a form of securities offering in which an investor purchases part of a business and assets.
According to the EoI, the consultant should plan the Capital Development Authority and special purpose vehicle architecture for the capital, including potential tax-sharing structure between the authority, a special purpose vehicle and the state government, based on assessment of various models in successful cities.
The government proposes to conduct a global competition, inviting reputed urban master plan designers, planners and architects, to develop the spatial concept master plan for the capital city and the metropolitan region.
“It is expected that the spatial concept master plan along with the special development control regulations, zoning regulations for the city and the region will be ready in 9-12 months,” it said.
The consultancy shall estimate population growth for a 30-year period till 2045 and list the category of migrants to come to the city.
Capital City Communications Strategy, Preparation of Socio-economic Master Plan for the City, Preparation of Special Development Control Regulations/ Zoning Regulations for the city and the region, city governance plan and Doing Business Rules are also part of the project.
“The construction of a new capital city is not merely an exercise in building physical infrastructure. It involves the creation of a concept plan and design that is not only modern, environmentally sustainable, and functionally efficient, thereby endowed with a high-degree of ‘liveability quotient’, but also resonates with the local environment, history and culture, thereby creating a deep sense of attachment and ownership among its primary stakeholders,” said an official of INCAP.
