Both States and Central governments make large investments in infrastructure assets like roads, airports, and mass transit that opens up vast suburban hinterlands. Similarly, investments in townships, industries, and commercial establishments catalyse rapid economic development in those areas. These investments typically generate large value enhancement, most of which get captured by private property owners in the form of higher land values. Governments typically recover only a limited value from such public investments, thereby constraining their capacity to make similar investments elsewhere. It is with this objective that Policy on Value Capture Finance (VCF) for financing infrastructure and development has been prepared.
The ministry seeks suggestion and feedback from the public and other stakeholders on the draft before firming up the policy.
Last date to share your suggestions is 20th September, 2016.
Click to Read: Draft National Policy Note on Value Capture Finance
