Economy & Market

Will PPPs in affordable housing succeed?

Published

8 years ago

December 30, 2017

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Urbanisation is central to a country’s economy – and in India, the urbanisation rate corresponds to 60 per cent of the country’s GDP. For smoother transformation of a developing nation like India, the need of the hour is to manage the process of urbanisation. The rapid pace of urbanisation has given rise to many grave issues – one of them being housing shortage.
Urban land in India, constituting 3.1 per cent of the country’s land area, presents a complex situation where high urban densities co-exist with sub-optimal utilisation (India Habitat Report, 2016). The inward migration of massive chunks of population from rural areas and peri-urban areas to urban areas in search of livelihood and better living conditions is continually exacerbating the shortage of housing in our cities.
As a result, a new socio-economic category known as the ‘urban poor’ has emerged. The Center and States have taken up the challenge of providing ‘Housing for All’ in India’s cities and towns, and several housing policies and missions have been launched to provide shelter to this new category of citizens. Building bye laws and building codes have been modified, loan disbursals have been eased, and interest subsidies have been provided in the banking financial system to reach out to this class of the population.
Though the recent census data highlights that the housing shortage rate in India’s urban areas declined from 1.63 million to 0.39 million in 2011; nevertheless, the larger problem persists. In India, private sector players, which include developers and housing finance companies, tended to primarily target housing for the HIG (higher income group), resulting in sustained supply and competition in this segment.
While the government is, on the other hand, focused on providing shelter to the poor and EWS (economically weaker sections), the results of these efforts have been largely insufficient. Also, the housing requirements of the LIG (lower income groups) are being grossly neglected, and there is a serious dearth of affordable housing to cater to this segment of society. By combining the strengths of private players with those of the public sector, the challenges of providing affordable housing can be overcome. Superior outcomes are achievable via case-specific PPP structures with appropriate allocation of risks and value creation.Mammoth housing shortage
Thanks to incessant demand, the housing sector in India is one of the fastest-growing industries in the country. It is one of the biggest employers, and has direct or indirect impacts on all sectors of the economy. In fact, the real estate industry is the third-largest contributor to the Indian economy, and the housing sector contributes 85 per cent of the total real estate activity. As per JLL estimates, the urban housing shortage till 2022 stands at 15.97 million units. By government estimates, the shortage in 2012 stood at 18.78 million units, of which, 96.5 per cent (estimated by the end of 2017) is in the LIG and EWS combined.
A report by the Technical Group on Housing Shortage (TG-12) mentions that states like Uttar Pradesh, Maharashtra, West Bengal and Andhra Pradesh have higher housing shortage, accounting for to 7.61 million units. It is correctly inferred that though there is significant shortage of LIG and EWS category housing (17.96 million units in 2012), the supply in urban areas – which largely caters to MIG and HIG category buyers – represents a significant inventory overhang and is not selling well at all.
The government’s mission of ‘Housing for All by 2022′ seeks to provide a credible and viable answer to this pressing question, and focuses on single-window clearances, construction of 84,460 affordable houses in 5 states of India, and various other efforts to create low-cost housing. These initiatives have definitely had a positive impact on the housing sector. However, not much of a dent in the overall affordable housing shortage has so far been made. According to a report by the Ministry of Housing and Urban Poverty Alleviation (MHUPA), urban housing stock has increased from 52.06 million to 78.48 million units in the past decade. Another review observes that the skyrocketing prices of housing stock and congestion of stock in limited areas have contributed significantly to keeping a majority of the urban poor homeless.
The Union Budget of India 2017-2018 has led impetus to affordable housing and the infrastructure segment, and the announced tax benefits and proposed changes in the long-term capital gains tax will boost players’ confidence in these projects. This is an important step to attracting private players to this segment and thereby improving the supply of low-cost houses in India. Drawing from global cues
The challenge of providing affordable or inclusive housing exists all across the world. A distinct ‘housing trap’ exists as even rental housing is becoming increasingly expensive, with house ownership becoming a distant dream, insufficient social housing creation and the number of wait-listed applications growing every year in many countries.
The housing crisis is certainly escalating. To resolve it, many developed countries have become proactive with subsidies and incentives for providing housing to the less economically privileged segment:
In Singapore, 82 per cent of the population resides in social housing. The country’s housing policy emphasises the ownership rather than the rental model, and provides consummate subsidies to first-time house buyers. Another notable practice can be observed in Seoul, the capital of South Korea, where older housing stock becomes available to low income households by redeveloping it in appropriate locations under the concept of inclusive planning. In Philippines, a penalty is imposed if land is kept idle for too long instead of making it available for housing development.
In Spain, FSI incentives have enabled developers to sell affordable units at a 1/3rd price compared to the prevailing market rates. PPP policy
To attract private developers to affordable housing, the Indian government recently drafted a new policy on ‘Public Private Partnerships for Affordable Housing’ in an attempt to overcome the challenges and maximise financial gains by tapping the potential of such projects. The new policy has devised various models of PPP to achieve these gains and moderate associated risks.
The models are prepared for two cases – the first being for instances where the Government leases the land, and the second for when a private developer has to identify the land. The second case is further bifurcated into two scenarios. In the first scenario, development is carried out in partnership (the Analytic Hierarchy Process or AHP system) and in the second, when development is carried out on the basis of the Credit Linked Subsidy Scheme (CLSS). The policy also talks about several other features like cross subsidy, fast approvals, etc. If both the market risks and sales are high, this policy will ensure a successful PPP model in the affordable housing segment.Success stories
Affordable housing refers to housing units that the section of society whose income is below the median household income can afford. While the term ‘Affordable Housing’ has been bandied about extensively and this segment is inherently very promising, the multiple associated concerns have in the past caused most developers to divest in this sector.
The biggest challenge in this sector is implementation against a backdrop of a very unclear policy framework. Other constraints are the lack of supply of developable land at reasonable prices, higher construction costs, unsupportive development control norms – and, not least of all, lack of easy access to home finance for the low income groups.
Though the Government is working hard towards addressing these issues by taking strategic steps, the policy framework must be strengthened further to stimulate growth and deliver sufficient relief to LIG home buyers. Implementation must be simplified and clarified if more investors and developers are to be attracted to this sector. At the end of the day, affordable housing provides a plethora of opportunities to all stakeholders, and the private sector can bridge the deficit by introducing innovative construction practices which can reduce costs and improve project financing, marketing and sales.
Even before the ‘PPP Policy on Affordable Housing’ was announced, many Indian states had policies which attempted to effectively implement affordable housing schemes. In the 2001-2006 policy period, states like Maharashtra, Uttar Pradesh, Gujarat and Andhra Pradesh made first attempts to formulate township policies which included provisions for affordable housing, as well.
Since then, there have been many changes and reforms in these policies. For instance, Andhra Pradesh’s latest affordable housing policy suggests four different models in which private developers are encouraged via fast-tracked clearances and approvals, FSI incentives, timely payments and the flexibility for developers to determine the sale price of the affordable houses (with approval from the authority). It also suggests a rental housing model wherein rent would be fixed by the Government.
Benefits such as exemptions in service tax, trade license fees, stamp duty etc. are provided for affordable rental housing units. Andhra Pradesh’s development control regulations also include an allocation of 10 per cent of total built-up area for LIG and EWS housing in all townships, group housing and gated community projects.
Alternately, the regulations call for allocation of proportionate land to the Government, to be used for public welfare in the form of housing or civic infrastructure, urban open spaces, etc.
In Maharashtra, a special Township Policy was formulated in 2004 to attract private players to cater to the demand for LIG and MIG housing. However, this resulted in only 17 projects in 11 years (2004-2015). After the state took a serious look at this shortfall in implementation, amendments were proposed in the policy. The new ‘Housing Policy and Affordable Housing Plan’ unveiled in 2015 targets 50,000-100,000 affordable houses to be constructed every township, each township must have an area of 40 hectares, and there can be as much as 100 per cent of permissible FSI if the area has a sufficient potential and can potentially achieve realistic targets.
Also, ‘in-situ’ slum redevelopment projects with private participation in the state provided 1,592 dwelling units for eligible slum dwellers by leveraging the locked potential of public land under slums and including them as formal urban settlements. The project was executed in eight packages consisting of eight locations in Ahmedabad city (Gujarat) and provided 1,592 dwelling units of about 27 sq. carpet area with basic civic infrastructure like water supply, sewerage system, internal road connectivity with street lights, etc. 83 eligible slum dwellers owning commercial spaces were each allotted shops of 15 sq m carpet area.
This project’s USP was that additional FSI and Transferable Development Rights (TDR) were generated and awarded to the private partner, which made the slum redevelopment project financially viable. The private partner provided the eligible slum dwellers rental transit accommodation for the entire construction period at Rs 6,000 per month.Take away
The success of affordable housing initiatives depends on the proactive involvement of various stakeholders, including private sector players, operating with a clear roadmap of roles and responsibilities. Innovative PPP models must be explored to yield win-win scenarios for all involved partners and encourage private developers to participate more in this competitive market.
As per the PPP policy, both ownership and rental models backed by an institutional structure should result in the right kind of housing supply to reach its designated end users effectively. States should have their own township policies earmarking dedicated zones for affordable housing. Incentives in the form of land lease, FSI, reduction in stamp duty and exemption from other associated taxes will significantly reduce project costs.
With the deployment of the Real Estate (Regulation and Development) Act [RERA] in 2016, which also focuses on timely completion of projects and adoption of innovative technologies like prefab and pre-cast housing, there is a hope for effectively covering the demand/supply gap. Unlocking older housing stock by redeveloping dilapidated structures and adding them to the overall supply of affordable housing will help in a big way. If the PPP policy is able to regularise, monitor and encompass the all-important principles of inclusiveness, equity, environmental sustainability and transparency, they will certainly succeed.Authors: – The article is authored by A Shankar, National Director and Head of Operations – Strategic Consulting, JLL India.

Economy & Market

RAHSTA Roundtable Sets Agenda for Smarter, Safer Highways

Published

13 hours ago

March 16, 2026

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Roundtable discussions focus on innovation for safer highways.

Held on 12 March 2026 at Courtyard by Marriott, Mumbai, alongside the Infrastructure Today Airport Conclave, the RAHSTA Roundtable brought together stakeholders from across the highways and infrastructure ecosystem to shape the agenda for the 16th RAHSTA 2026, scheduled for 8–9 July 2026 at the Jio Convention Centre, Mumbai. The session focused on key industry themes including road construction, technology, safety and long-term sustainability.

Opening the discussion, Pratap Padode, Founder, FIRST Construction Council, said the roundtable marked the beginning of a broader consultative process leading up to the July event. The aim, he noted, is to bring together industry stakeholders to refine the agenda for discussions on the future of roads, bridges, tunnels and allied infrastructure.

Padode noted that while central road project awards have slowed in recent years, states are increasingly driving the next phase of infrastructure growth. Maharashtra, with its long-term road development plans and agencies such as MSRDC and MSIDC, is expected to play a significant role in this expansion.

RAHSTA Expo 2026 as a specialised platform dedicated to road infrastructure, covering highways, tunnels, bridges and flyovers along with construction technologies, safety systems and maintenance solutions. He also highlighted the growing importance of rural connectivity and said the organisers are engaging with government bodies to highlight rural road development initiatives.

Tanveer Padode, CIO, ASAPP Info Group, presented insights from IMPACCT, the group’s infrastructure intelligence platform. He pointed to a strong project pipeline despite slower highway awards earlier in the year, noting that states such as Maharashtra, Odisha and Arunachal Pradesh are emerging as key drivers of new projects. The data also revealed that only a small group of contractors participates in large-value infrastructure bids.

Lt Gen Rajeev Chaudhary, former Director General, Border Roads Organisation and Chairman of the RAHSTA Expo Committee, emphasised the need for stronger collaboration across the ecosystem, including policymakers, contractors, technology providers and financiers. He also called for addressing systemic issues within the sector and encouraged greater participation of women in infrastructure leadership.

The discussion also explored the evolving economics of road development. Phani Prasad Mandalaparthy, Associate Director, CRISIL Intelligence, noted that the slowdown in project awards reflects a shift towards higher-value logistics corridors rather than simple road widening projects. However, private participation through BOT and TOT models remains limited.

From the contractors’ perspective, Sudhir Hoshing, Whole-Time Director, Ceigall, said companies are becoming more selective in bidding, favouring projects with clearer payment mechanisms and efficient processes. While NHAI continues to offer greater operational clarity, states such as Uttar Pradesh and Bihar were cited as relatively supportive environments for project execution.

Durability and sustainability also emerged as key themes. Himanshu Agarwal, COO – Road & Infrastructure, Zydex Group India, highlighted the need to prioritise lifecycle performance and resilient pavements, while participants discussed the potential of alternative materials such as plastic waste, steel slag and industrial by-products in road construction.

Dr LR Manjunatha, Vice President, JSW Cement, emphasised that India has abundant fly ash, slag and other industrial materials that can improve durability and sustainability if integrated into specifications and policy frameworks.

Technology and equipment challenges were also discussed. Dr Lakshmana Rao Mantri, Dy General Manager, Afcons Infrastructure, highlighted the shortage of tunnel boring machines (TBMs), which is delaying several underground infrastructure projects. Participants agreed that developing domestic TBM manufacturing capabilities will be critical for future infrastructure expansion.

The future of concrete pavements was another area of discussion. Dr V Ramachandra, President, Indian Concrete Institute, stressed that the debate should focus on lifecycle performance rather than material choice alone, noting that evolving design standards are improving the feasibility of concrete roads.

Prof Dharamveer Singh of IIT Bombay added that while India has made significant progress in infrastructure development, stronger capacity building and better execution practices are essential to ensure consistent road quality.

The discussion also touched upon technology adoption in the sector. Rushabh Mamania, Partner & CBO, Roadvision, highlighted the growing role of AI in road infrastructure, noting that AI-driven monitoring systems are already being deployed across large stretches of national highways.

Overall, the roundtable underscored that the future of highway infrastructure will depend not only on the pace of construction but also on durability, safety, technology integration and sustainable materials. The discussions offered valuable insights that will help shape the agenda for RAHSTA 2026 and guide future collaboration within the industry.

Economy & Market

CTS Roundtable Charts Tech-Led Roadmap for Construction

Published

13 hours ago

March 16, 2026

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CTS Roundtable Maps Technology Roadmap for Construction

Ahead of the Construction Technology Show (Con Tech Show) 2026, industry leaders, technology innovators and academia came together in Mumbai to deliberate on how digitalisation, automation and industrialised construction can reshape the sector. The discussion made one thing clear: construction can no longer afford to treat technology as optional.

Held on 12 March 2026 at Courtyard by Marriott, Mumbai, alongside the Infrastructure Today Airport Conclave, the CTS Roundtable served as a precursor to the Construction Technology Show 2026, scheduled for 19–20 August 2026 at NESCO, Mumbai.

A platform to move from discussion to deployment

Opening the session, Pratap Padode, Founder and Editor-in-Chief, ASAPP Info Global Group, said construction technology has long remained close to his heart, especially given the sector’s traditionally slow pace of technology adoption. He noted that over the years, the Construction Technology Summit had steadily built interest, and the next step was now to expand it into a larger, more meaningful platform that could bring together technology providers, users, startups and innovators under one roof.

Padode said the vision for CTS is not limited to software alone. The platform aims to embrace all forms of technology that can improve construction efficiency, quality and execution—from digital tools and project management systems to lean construction, off-site fabrication and startup-led innovation. He also highlighted plans to deepen startup participation and create space for young companies to showcase emerging construction solutions.

Industry at a turning point

Moderating the roundtable, Naushad Panjwani, Chairman, Mandarus Partners, set the context by pointing out that the global construction industry, despite being a multi-trillion-dollar sector, continues to lag in productivity. He noted that while manufacturing has consistently improved efficiency, construction has remained slow to modernise.

Referring to both global and Indian trends, Panjwani underlined that the industry is now at a decisive moment. India, he said, is entering a major build cycle, and delivering the next phase of infrastructure and real estate growth through traditional methods alone is no longer viable. The goal of the roundtable, therefore, was not to debate technology in isolation, but to identify the most critical conversations that would bridge the gap between innovation and implementation.

His central message was clear: CTS 2026 must be shaped around themes that make CEOs, CIOs and CTOs feel they cannot afford to miss the event.

From BIM to AI, data to governance

A major theme that emerged through the discussion was the need for better data, better visibility and better decision-making. Dr Venkata Santosh Kumar of IIT Bombay echoed this, saying that the underlying data infrastructure itself needs attention. Construction projects, particularly remote ones, often face issues around connectivity, data collection and data use. Without this foundation, more advanced technologies cannot deliver their full value.

Chandra Vasireddy, CEO & Co-founder, Inncircles, expanded the discussion to governance, arguing that technology must help connect the many moving parts of a construction business. For him, the real value of digital transformation lies in creating better governance, clearer visibility and stronger business outcomes.

Tejas Vara of Inncircles stressed the importance of timely site data for leadership teams, especially in large and remote projects where decisions on materials, machinery and manpower often get delayed because information does not reach headquarters in time.

The role of AI also featured prominently. Rushabh Mamania, Partner and CBO, Roadvision said that while AI and machine learning are now common terms, vision intelligence and language intelligence have still not deeply penetrated the construction sector. He emphasised that startups in India are building relevant AI-led solutions and are already attracting international interest, showing that innovation need not be imported—it can be built locally and scaled globally.

Industrialised construction gains ground

The roundtable also placed strong emphasis on industrialised construction methods. Kalyan Vaidyanathan, CTO – Construction & R&D, Tvasta, called for greater focus on off-site fabrication and the broader industrialisation of construction. Bhargav Jog, General Manager, Dextra, highlighted precast technology and alternative sustainable materials as areas with immediate relevance.

Several participants agreed that modular, precast and pre-engineered approaches are no longer niche ideas. They are increasingly becoming practical responses to the sector’s challenges around labour shortage, timelines, quality control and predictability.

Anup Mathew, Sr VP & Business Head, Godrej, argued that the industry needs a fully integrated approach—from design and procurement to execution and asset management. Unless these are connected, technology adoption will remain fragmented and sub-optimal. He pointed to pre-engineered and modular systems as examples of how industrial thinking can compress timelines, improve quality and reduce dependence on difficult on-site conditions.

Adoption remains the biggest hurdle

While there was broad agreement on the promise of technology, the discussion repeatedly returned to one fundamental challenge: adoption.

Abhishek Kumar, COO, LivSYT, observed that the market is crowded with solutions, but many buyers still struggle to evaluate which technology suits which use case. According to him, the industry needs clearer frameworks to help users select, compare and adopt solutions, rather than expecting a single platform to solve every problem.

Dr Tenepalli JaiSai, Associate Professor, School of Construction(SoC), NICMAR University, noted that isolated technologies will not solve the productivity problem by themselves. What is required is an integrated Construction 4.0 approach, where digital, physical and cyber-physical systems work together rather than in silos.

That concern around silos was reinforced by Subodh Dixit, former Director, Shapoorji Pallonji, who said the issue is not just that technologies are disconnected, but that stakeholders are as well. Clients, consultants, contractors and partners often operate with different priorities. Unless these silos are broken, technology will struggle to percolate across the full project value chain.

Harleen Oberoi, Project Management, Tata Realty shared a practical perspective from the client side, saying that successful BIM implementation requires investment across the ecosystem, not just within one organisation. Trade partners, vendors and other stakeholders must also be trained and aligned if the technology is to deliver its intended results.

Beyond buzzwords

A notable takeaway from the session was that the industry is moving past the phase of treating technology as a buzzword. Participants repeatedly stressed that the real question is not whether technology should be used, but where it creates measurable value and how that value can be scaled.

The conversation also expanded beyond mainstream themes to include repairs and rehabilitation, construction and demolition waste, sustainability, circular economy, green sourcing, carbon measurement, design interoperability, generative design, robotics, and the role of horticulture and greener built environments.

Setting the agenda for CTS 2026

By the close of the session, the roundtable had surfaced a strong set of themes for the upcoming show: BIM and digital twins, AI and data platforms, industrialised construction, startup innovation, governance-led technology adoption, robotics, sustainable materials, and integrated project delivery.

More importantly, the session established CTS 2026 as more than an exhibition. It is shaping up to be a serious industry platform where users, technology providers, researchers and policymakers can collectively define the future of construction.

As Padode noted in his closing remarks, the conversation will continue through further consultations and possibly webinars in the run-up to the show. If the roundtable is any indication, CTS 2026 will aim not merely to showcase technology, but to push the industry towards meaningful adoption at scale.

Economy & Market

Smart Pumping for Rock Blasting

Published

2 weeks ago

March 2, 2026

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SEEPEX introduces BN pumps with Smart Joint Access (SJA) to improve efficiency, reliability, and inspection speed in demanding rock blasting operations.
Designed for abrasive and chemical media, the solution supports precise dosing, reduced downtime, and enhanced operational safety.

SEEPEX has introduced BN pumps with Smart Joint Access (SJA), engineered for the reliable and precise transfer of abrasive, corrosive, and chemical media in mining and construction. Designed for rock blasting, the pump features a large inspection opening for quick joint checks, a compact footprint for mobile or skid-mounted installations, and flexible drive and material options for consistent performance and uptime.

“Operators can inspect joints quickly and rely on precise pumping of shear-sensitive and abrasive emulsions,” said Magalie Levray, Global Business Development Manager Mining at SEEPEX. “This is particularly critical in rock blasting, where every borehole counts for productivity.” Industry Context

Rock blasting is essential for extracting hard rock and shaping safe excavation profiles in mining and construction. Accurate and consistent loading of explosive emulsions ensures controlled fragmentation, protects personnel, and maximizes productivity. Even minor deviations in pumping can cause delays or reduce product quality. BN pumps with SJA support routine maintenance and pre-operation checks by allowing fast verification of joint integrity, enabling more efficient operations.

Always Inspection Ready

Smart Joint Access is designed for inspection-friendly operations. The large inspection opening in the suction housing provides direct access to both joints, enabling rapid pre-operation checks while maintaining high operational reliability. Technicians can assess joint condition quickly, supporting continuous, reliable operation.

Key Features

Compact Footprint: Fits truck-mounted mobile units, skid-mounted systems, and factory installations.
Flexible Drive Options: Compact hydraulic drive or electric drive configurations.
Hydraulic Efficiency: Low-displacement design reduces oil requirements and supports low total cost of ownership.
Equal Wall Stator Design: Ensures high-pressure performance in a compact footprint.
Material Flexibility: Stainless steel or steel housings, chrome-plated rotors, and stators in NBR, EPDM, or FKM.

Operators benefit from shorter inspection cycles, reliable dosing, seamless integration, and fast delivery through framework agreements, helping to maintain uptime in critical rock blasting processes.

Applications – Optimized for Rock Blasting

BN pumps with SJA are designed for mining, tunneling, quarrying, civil works, dam construction, and other sectors requiring precise handling of abrasive or chemical media. They provide robust performance while enabling fast, reliable inspection and maintenance.With SJA, operators can quickly access both joints without disassembly, ensuring emulsions are transferred accurately and consistently. This reduces downtime, preserves product integrity, and supports uniform dosing across multiple bore holes.

With the Smart Joint Access inspection opening, operators can quickly access and assess the condition of both joints without disassembly, enabling immediate verification of pump readiness prior to blast hole loading. This allows operators to confirm that emulsions are transferred accurately and consistently, protecting personnel, minimizing product degradation, and maintaining uniform dosing across multiple bore holes.

The combination of equal wall stator design, compact integration, flexible drives, and progressive cavity pump technology ensures continuous, reliable operation even in space-limited, high-pressure environments.

From Inspection to Operation

A leading explosives provider implemented BN pumps with SJA in open pit and underground operations. By replacing legacy pumps, inspection cycles were significantly shortened, allowing crews to complete pre-operation checks and return mobile units to productive work faster. Direct joint access through SJA enabled immediate verification, consistent emulsion dosing, and reduced downtime caused by joint-related deviations.

“The inspection opening gives immediate confidence that each joint is secure before proceeding to bore holes,” said a site technician. “It allows us to act quickly, keeping blasting schedules on track.”

Framework agreements ensured rapid pump supply and minimal downtime, supporting multi-site operations across continents