Page 321 - Low Carbon Development in China and India
P. 321
As explained earlier, evolving space for financing public infrastructure
needs a framework where divergent sources of finance can combine
together to create synergies in providing public infrastructure which is
efficient, robust, and long-term.
JNNURM phase I, which ended in 2014, is a good example of the
government acknowledging the need to address issues associated with
urbanization. However, while assessing the method, it is important
to look at how JNNURM has fared. According to the Ministry of
Urban Development, Government of India, till March 31, 2014, only
42.19 per cent, i.e., 227 of the total sanctioned projects (538) in
India could get completed. A major criticism of JNNURM has been
that it has followed a structure of a PPP model which has failed to
deliver. However, it is also important to understand the reasons
behind the failure of PPP. It may be reasonable to say that there is
no tool to understand the financial implications of public finance and
investment-grade finance involved in a common framework; nor is
there one to understand financial returns and also the implications
for sustainability. It is, hence, important to fully understand the
interactions within PPP as a business model.
2.3.4 Buildings
A burgeoning population, escalating economic development and
internal migration to urban centres from rural areas has resulted in
India’s cities bursting at the seams. The cities are also plagued with
numerous environmental problems which negatively impact the health
and well-being of its residents. Contiguously, the increasing scarcity of
environmental resources has transformed them into economic goods,
with people willing to pay more for better environmental quality.
One of the sectors where environmental quality is explicitly traded
is real estate; buyers bid up the prices of residential properties that
enjoy proximity to and/or have a provision for facilities that reduce
environmental pollution and wastage (energy efficiency, water
conservation, and waste management processes).
A green building refers to a building created by using processes
that are environmentally responsible and that is resource-efficient
throughout its life cycle. This requires the close cooperation of various
stakeholders involved in the creation of a green building comprising
the design team, the architects, the engineers, and the client, at all
stages of the project. In India, there are mainly two rating systems for
green buildings, namely GRIHA (Green Rating for Integrated Habitat
Assessment), and LEED (Leadership in Energy and Environmental
286 Low Carbon Development in China and India
needs a framework where divergent sources of finance can combine
together to create synergies in providing public infrastructure which is
efficient, robust, and long-term.
JNNURM phase I, which ended in 2014, is a good example of the
government acknowledging the need to address issues associated with
urbanization. However, while assessing the method, it is important
to look at how JNNURM has fared. According to the Ministry of
Urban Development, Government of India, till March 31, 2014, only
42.19 per cent, i.e., 227 of the total sanctioned projects (538) in
India could get completed. A major criticism of JNNURM has been
that it has followed a structure of a PPP model which has failed to
deliver. However, it is also important to understand the reasons
behind the failure of PPP. It may be reasonable to say that there is
no tool to understand the financial implications of public finance and
investment-grade finance involved in a common framework; nor is
there one to understand financial returns and also the implications
for sustainability. It is, hence, important to fully understand the
interactions within PPP as a business model.
2.3.4 Buildings
A burgeoning population, escalating economic development and
internal migration to urban centres from rural areas has resulted in
India’s cities bursting at the seams. The cities are also plagued with
numerous environmental problems which negatively impact the health
and well-being of its residents. Contiguously, the increasing scarcity of
environmental resources has transformed them into economic goods,
with people willing to pay more for better environmental quality.
One of the sectors where environmental quality is explicitly traded
is real estate; buyers bid up the prices of residential properties that
enjoy proximity to and/or have a provision for facilities that reduce
environmental pollution and wastage (energy efficiency, water
conservation, and waste management processes).
A green building refers to a building created by using processes
that are environmentally responsible and that is resource-efficient
throughout its life cycle. This requires the close cooperation of various
stakeholders involved in the creation of a green building comprising
the design team, the architects, the engineers, and the client, at all
stages of the project. In India, there are mainly two rating systems for
green buildings, namely GRIHA (Green Rating for Integrated Habitat
Assessment), and LEED (Leadership in Energy and Environmental
286 Low Carbon Development in China and India
