: Value capture financing (VCF) works on the conviction that public policy and infrastructure projects typically lead to improvement in the quality of housing, jobs access and transportation, yield other social benefits, and lead to the emergence of important commercial, cultural, institutional, or residential developments in the influence area. This, in turn, leads to an appreciation in land value in the neighbourhood.
Value capture financing consists of 4 steps:
Value creation: Public regulations, policies and investments lead to creation of value
Value realisation by private owners: For instance, the investment made by a developer fetches a bigger monetary value when he sells housing units along a metro corridor planned by the government than he would have without the project
Value capture: It involves the government and private owners agree to a sharing mechanism for the value captured
Value recycle: The resources collected are ploughed back in other parts of the city to create fresh value
Thus, VCF can serve as an infrastructure financing tool, directly or indirectly.
KPSC Notes brings Prelims and Mains programs for KPSC Prelims and KPSC Mains Exam preparation. Various Programs initiated by KPSC Notes are as follows:-
- KPSC Mains Tests and Notes Program
- KPSC Prelims Exam 2020- Test Series and Notes Program
- KPSC Prelims and Mains Tests Series and Notes Program
- KPSC Detailed Complete Prelims Notes