Land Value Capture Financing for Implementing TOD in Indian Cities
To encourage sustainable development in cities, the Indian government is promoting Transit-Oriented Development (TOD) as an urban growth strategy to create vibrant, livable neighborhoods along efficient public transit. This requires significant investments at various stages of implementation, making it necessary to find alternate, innovative financing strategies to supplement traditional funding sources. Both the National TOD Policy and the Metro Rail Policy mandate the adoption of TOD and the use of Land Value Capture Financing (LVCF) to leverage premiums from the provision of transit and other public infrastructure and reinvest some of it back into financing transit and TOD. This document gives an insight on the benefits and challenges of value capture mechanisms, types of value capture mechanisms used globally and in India, applicability of value capture mechanisms in selected Indian cities and key findings.