Business Models for TOD in Indian cities
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India's urban population is expected to reach 600 million by 2031. A huge task lies ahead for the government in terms of developing infrastructure to accommodate this growth. To this end, the Ministry of Urban Development (MoUD) has recognized Transit Oriented Development (TOD) as the urban growth strategy of choice. TOD implementation typically entails long gestation periods and requires significant capital investments, often without definite returns. Hence, positioning TOD for suitable financing and developing concrete policy frameworks and regulations is a crucial for its success.
Between Local, State and Central Government, Transit Agencies, Business Community, Philanthropy/Leaders, Community and Community based organizations, Developers and Financial Institutions that provide resources and support to the TOD process, the amount of capital available for financing TOD is adequate but it needs to be properly channelized in order to facilitate implementation. The project proponents must identify all the components being financed in a TOD and the best finance model that could finance them. In spite of widespread acceptance globally, TOD cannot advance in India until the question of finance - “Where will the money come from, how will it be channelized and for what elements?” - is answered.
To facilitate an understanding of viable business models for implementing TOD, WRI India is organizing a workshop series with an aim to discuss the finance models currently in use for large scale infrastructure projects, along with a few innovative mechanisms, that could solve the logjam TOD faces.
For further information, please click here, or write to Prerna Mehta at PMehta@wri.org.
Resources
Click here to view the presentation.
Click here to view the conference proceedings.