Framework for foreign direct investment in residential projects
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This document presents a framework for measuring success in foreign direct investment (FDI) residential projects in India, considering the varying definitions of project success from different stakeholders. It also discusses the factors influencing success, including financial, quality, and product success factors, and aims to establish an index for project comparison and future improvements. Additionally, the framework incorporates criteria aligning project efforts with both short-term and long-term corporate goals to attract investors.
![NCC Ivory Heights
Type of project Residential
Location of project Mahadevpura, Bangalore
Type of development Joint development
Start date of project June 2012
Possession commi
tted to customer
as per sale agree
ment
December 2014 + three months
of grace period
Total saleable area 0.47 million sq ft
Name of the project NCC Ivory Heights
Name & address o
f the company dev
eloping the project
NCC Urban Infrastructure Ltd,
II & III Floor, Veerashiva Bhava
n, #17/4, Ramana Maharshi Ro
ad, Sadashivnagar, Bengaluru -
560 080
Name of the develop
er group
NCC Ltd
Track record in years 7 (Since 2005)
Projects developed till
date
6 (1.39 million square feet [sq ft]
)
Ongoing projects 3 (1.34 million sq ft)](https://image.slidesharecdn.com/frameworkforforeigndirectinvestmentinresidentialprojects-170422182313/85/Framework-for-foreign-direct-investment-in-residential-projects-42-320.jpg)
Framework for foreign direct investment in residential projects
- 1. Girish Kumar Singh MBEM, School of Planning & Architecture - 2016 Framework for FDI in Residential Projects
- 2. FDI is an investment from a foreign company introducing its financial contribution to a home busi ness company with underlying implication to gain ‘control’ on the assets of investee companies. Project success means different things to different people. Each industry, project team or individu al has a definition of success. Pariff and sanvido (1993) consider success as an intangible percepti ve feeling, a measuring criterion that varies with management expectations and varies among per sons and with the phases of project. Actually, owners, designers, consultants, contractors, as well as sub-contractors have their own project objectives and criteria for measuring success. For example, architects may view aesthetics or functionality as the main criterion rather than build ing cost. However, the client may have different views. Moreover, even the same person’s percepti on of success changes from project to project. Definitions on project success may change accordi ng to project type, size and sophistication, project participants and experience of owners, etc. Introduction
- 3. Due to the change in the FDI norms many investors are seeking to invest in india in various forms so it is directly give an impact on Indian real estate. Now it is important for an entity to give an idea to the investors about the project in terms of the • Project efficiency • Business success • Future impact So to give an idea about the project probabilistically a framework need to be designed including all the parameters which are helpful to make a project successful. Need of Study
- 4. Aim To develop a success measurement framework for residential project to attract investors through FDI. Objectives • To provide a project success index for an Upcoming projects in order to co mpare them with each other. • To establish a benchmark for future improvement in success of constructio n project execution.
- 5. • This paper aims at proposing a framework to categorize project success for building projects in India from the investor perspective to attract investors. • The proposed framework incorporates criteria that align the project efforts with both short and long-term goals of the companies moreover provide an appropriate judgment of success at all s tages of the project. • The proposed framework can only be used for residential type of project can be implemented o n other type. • This framework will give a fair idea to the investors about the micro markets in India. • This framework is designed to calculate the anticipated success rate at the proposal sage of the project. Scope and Limitation
- 6. Presentation Formulation Part 1 • Introduction • Aim • Objective • Scope Part2 • Literature Survey Part 3 • FDI Policy Part 4 • Project Success • Success Factor • Success Criteria Part 5 • Success Factors for Residential Project Part 6 • Questionnaire • Survey • Analysis • Framework Part 7 • Discussion on • survey finding Part 8 • Case Studies • Comparison Part 9 Conclusion.
- 7. • This paper aims at proposing a framework to categorize project success for building projects in India from the investor perspective to attract investors. • The proposed framework incorporates criteria that align the project efforts with both short and long-term goals of the companies moreover provide an appropriate judgment of success at all s tages of the project. • The proposed framework can only be used for residential type of project can be implemented o n other type. • This framework will give a fair idea to the investors about the micro markets in India. • This framework is designed to calculate the anticipated success rate at the proposal sage of the project. Scope and Limitation
- 8. FDI Policy For Real Estate Construction-development projects • Townships, • Construction of residential/commercial premises, • Roads or bridges, • Hotels, • Resorts, • Hospitals, • Educational institutions, • Recreational facilities, • City • Regional level infrastructure, townships • % of Equity/ FDI Cap – 100% • Entry Route - Automatic
- 9. Investment will be subject to the following conditions: (A) Minimum area to be developed under each project would be as under: (i) In case of development of serviced plots, no minimum land area requirement. (ii) In case of construction-development projects, a minimum floor area of 20,000 sq. meter. (B) Investee company will be required to bring minimum FDI of US$ 5 million within six months of commencement of the project. The commencement of the project will be the date of approval of t he building plan/lay out plan by the relevant statutory authority. Subsequent tranches of FDI can b e brought till the period of ten years from the commencement of the project or before the co mpletion of project, whichever expires earlier.
- 10. (C) (i) The investor will be permitted to exit on completion of the project or after development of tr unk infrastructure i.e. roads, water supply, street lighting, drainage and sewerage. (ii)The Government may, in view of facts and circumstances of a case, permit repatriation of FDI or tr ansfer of stake by one non-resident investor to another non-resident investor, before the completion of project. These proposals will be considered by FIPB on case to case basis inter-alia with specific re ference to Note (i). (D) The project shall conform to the norms and standards, including land use requirements and pr ovision of community amenities and common facilities, as laid down in the applicable building contr ol regulations, bye-laws, rules, and other regulations of the State Government/Municipal/Local Body concerned.
- 11. (E) The Indian investee company will be permitted to sell only developed plots. For the purposes of this policy “developed plots” will mean plots where trunk infrastructure i.e. roads, water supply, str eet lighting, drainage and sewerage, have been made available. (F) The Indian investee company shall be responsible for obtaining all necessary approvals, inclu ding those of the building/layout plans, developing internal and peripheral areas and other infrastru cture facilities, payment of development, external development and other charges and complying wi th all other requirements as prescribed under applicable rules/bye-laws/regulations of the State Gov ernment/Municipal/Local Body concerned. G) The State Government/Municipal/Local Body concerned, which approves the building/developme nt plans, will monitor compliance of the above conditions by the developer.
- 12. ProjectSuccess Project efficiency - Short term measure, - Completed on time, - Within the specified budget Impact on customer - Related to the customer and / or the user of the result, - Meeting performance measures - Functional requirement, - Technical specifications Business success - Measures of performance time, cycle time, yield and quality and total improvement of organization performance Preparing for the future - Long term dimension, - Preparing organization & technological infrastructure for Future Development.
- 13. Project Success Micro Viewpoint Completion(Fes. S) - Time - Cost - Quality - Performance - Safety Macro Viewpoint Completion(Plan S) - Time - Satisfaction - Utility - Operation - Cost
- 14. Project Success Short Term Goal Time Frame Project Efficiency Success Category Time, Budget, Requirement's Goal Key Success Medium Term Goal Time Frame Impact on Customer Success Category Performance Measures, Technical Specification, Functional requirements. Key Success Long Term Goal Time Frame Business & Direct Success Success Category Commercial Success, Market Share, Revenue & Profits Key Success Very Long Term Goal Time Frame Preparing For the Future Success Category Developing New:- Opportunities For Future Technology, Techniques, Product , Markets Key Success The four dimensions of project success. Based on Shenhar et al. (1997, 2007).
- 15. Project Success Delivery Stage The Process Cost Time Quality Efficiency Post Delivery Stage The System Benefits to Stakeholders, Criteria from project manager, top management, Customer, Client and team member, Resultant System The Benefits Impact on Customer Business Success. DoitRightGettingitRightGettingthemRight Measuring project success. Based on Atkinson (1999, p. 339).
- 16. Project Management Success Product SuccessProject Success -Time, Cost and quality -Project Management Pro cess -Stakeholder’s Satisfaction -Owner’s Strategy -User’s Satisfaction -Profitability & Market Sh are Project success components. Based on Baccarini (1999), p. 28).
- 17. Project Succ ess Market Succ ess Adherence to t he quality Targ ets Adherence to S chedule Adherence to B udget Captured Know ledge Profitability Revenue Market Share Reputation Competitive Ad vantage Customer Satisf action Theoretical performance model. Source: Blindenbach-Driessen (2006, p. 60).
- 18. Key Performance Indicat or Objective Measures • Construction time • Speed of construction • Time variation • Unit cost • Percentage net variation ov er final cost • Net present value • Accident rate • Environment Impact Assess ment (EIA) Scores Subjective Measures • Quality • Functionality • End-user’s satisfaction • Client’s satisfaction • Design team’s satisfact ion • Construction team’s sa tisfaction
- 19. Source:- International Journal of Engineering Business Management, Malaysia
- 20. Source:- International Journal of Engineering Business Management, Malaysia Project success criteria Company success Secondary product success Profitability success Branding success Primary product success Time .644 Budget .899 Project safety .721 Sales of the Product .868 Market share .818 Return .791 Market Trend .645 Life cycle cost .627 .507 Sustainability .844 Durability .795 Quality .818 Environmental effect .842 Experience/Knowledge gain from the project .815 Improvement of the management .685 .519 Company growth .885 Personnel training .844 Developer‐Contractor relation .657 .557 Developerʹs reputation .764 Customerʹs Satisfaction .640 Customerʹs confidence on the product of the company .806
- 21. Success Factors and Sub Factors The Success factors for residential projects are divided into three main category • Financial Factor • Quality Factor • Product Success Factor
- 22. Financial Factors • Returns (IRR) • Sales of the product • Market Trend • Inflation Rate • Taxation ( Registration Fees and Stamp Duty ) Quality Factors The Factor for the Residential Project are:- • Time • Construction Time • Time Variation • Speed of Construction • Cost • Cost Variation • Unit Cost • Total field Rework factor • Safety • Fatality Rate • Accident Rate • Safety Trainings
- 23. • Quality • Geographical Factor • Governmental Factor. • Political Instability • Bribery and Corruption • Legal Risks in Construction Sector • Regulatory Environment • Policy Formation and Execution Factors For Project • Project Participant • Satisfaction of Stakeholders (Comparis on with Same Project) • End Life adaptability • Environmental Assessment. • Operation/ Maintenance • Demographic Factor Product Success Factors
- 24. Project Success Financial Factor Returns Sale of the Product Market Trend Inflation Rate Tax Quality Factor Time Cost Safety Product Success Quality Geographical Factor Governmental Factor Project Participant End Life adaptability
- 25. Financial Factor Returns (IRR) Sales of the product Market Trend Escalation Taxation Quality Factor Time Cost Safety Product Success Factor Quality Geographical Factor Government Factor. Project Participant
- 26. Experience of Respond ent in Years Total Respondent :- 20 10 – 15 Years :- 7 16 – 20 Years :- 6 21 – 25 Years :- 3 26 – 30 Years :- 2 More than 30 Years :- 21 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 20 10 15 12 16 18 25 17 12 14 18 22 29 32 26 12 41 23 18 12 EXPERIENCE OF RESPONDENT IN YEARS Survey Result C:UsersGirish Kumar SinghDesktopResearch Questionnaire for Framework for Foreign direct Investment in Residential2 Projects.pdf
- 27. Questions 1 2 3 4 5 Avg. Rating Wet. How Important Internal rate of return is for an investor in Residential pr oject ? 0 0 1 9 10 4.45 0.08225508 3 How important Sale funnel (rate of sale of product in a particular area) i s to the investor in a Residential Project ? 0 0 0 7 13 4.65 0.08595194 1 How important is price escalation for a particular area to the Investor ? 0 0 0 13 7 4.35 0.08040665 4 How Important Taxation ( Stamp Duty, Registration Fee etc ) is investor to be taken into consideration before investment in residential project ? 1 12 6 1 0 2.35 0.04343807 8 How important construction time is to be consider in order to get a go od quality of residential project ? 1 4 6 6 3 3.3 0.06099815 2 How Important cost of the construction to get a good quality of residen tial project ? 0 1 5 11 3 3.8 0.07024029 6 How Important safety(Pre-construction, During Construction, Post- Cons truction) is to be taken consideration in a residential project ? 0 0 11 9 0 3.45 0.06377079 5 How important quality of construction in residential project ? 0 0 1 8 11 4.5 0.08317929 8 How important to take bribery and corruption in that state into conside ration before investment in a residential project ? 1 5 2 6 6 3.55 0.06561922 4 How Important location of the site to get a successful residential project ? 0 0 0 6 14 4.7 0.08687615 5 How Important government policy formulation and execution are for a s uccessful project ? 0 0 3 5 12 4.45 0.08225508 3 How ease of government policies are important to taken into considerat ion before investment in a Residential Project? 0 0 10 8 2 3.6 0.06654343 8 How important to take political stability/Instability of the government of that state into consideration before investment in a residential project ? 2 1 8 9 0 3.2 0.05914972 3 How important the image of a contractor to take into consideration for 0 0 5 15 0 3.75 0.06931608
- 28. Survey Result Success Factors Avg. Rating Weightage % Contribution Ranks Returns (IRR) 4.70 0.087 8.69% 1 Sales of the product 4.65 0.086 8.60% 2 Geographical Factor 4.50 0.083 8.32% 3 Quality 4.45 0.082 8.25% 4 Policy Formulation 4.45 0.082 8.20% 5 Inflation Rate 4.35 0.080 8.04% 6 Cost 3.80 0.070 7.02% 7 Project Participant 3.75 0.069 6.93% 8 Ease in government policies 3.60 0.067 6.56% 9 Bribery and corruption 3.55 0.066 6.56% 10 Safety 3.45 0.064 6.38% 11 Time 3.30 0.061 6.10% 12 Political stability/Instability of the government 3.20 0.059 5.91% 13 Taxation Structure of that st ate 2.35 0.043 4.34% 14 Total 54.10 1
- 29. Finalizing the frame work • Internal Rate of Return = IRR • Rate of sale of Product = SP • Price Escalation = PE • Taxation = TX • Construction Time = CT • Construction Cost = CC • Safety = SF Total Project Score = 0.086IRR + 0.085SP + 0.08PE + 0.043TX + 0.06CT + 0.07CC + 0.063SF + 0.083QA + 0.065BC + 0.083GF + 0.082PF + 0.066EGP +0.059PSI +0.069PP Total Project Score = 0.30 Financial Factor + 0.20 Quality Factor + 0.50 Project Success Factor • Quality = QA • Bribery and Corruption = BC • Geographical Factor = GF • Policy Formulation = PF • Ease in government policies = EGP • Political stability/ Instability of the government = PSI • Project Participant = PP
- 30. Returns (IRR) 1 - If the expected rate of return is generating revenue for 1 years 2 - If the expected rate of return is generating revenue for 1.5 years 3 - If the expected rate of return is generating revenue for 2 years 4 - If the expected rate of return is generating revenue for 2.5 years 5 - If the expected rate of return is generating revenue for 3 years 6 - If the expected rate of return is generating revenue for 3.5 years 7 - If the expected rate of return is generating revenue for more than 3.5 years Sales of the product 1 – If the total 80% of projects is getting sale off after the project get completed 2 – If the 80% of projects is getting sale within the end date of the project 3 – If the 80% of projects is getting sale before 3 months the project get completed 4 – If the 80% of projects is getting sale before 6 months the project get completed 5 – If the 80% of projects is getting sale before 9 months the project get completed 6 – If the 80% of projects is getting sale before 12 months the project get completed 7 – If the 80% of projects is getting sale before 6 months the project get started Rating Parameters
- 31. Geographical Factor 1 – If any of the project is more than the 2 KM radius of market proximity. 2 – If any of the project is within the 2 KM radius of market proximity. 3 – If any of the project is within the 2 KM radius of market proximity & shopping centre. 4 – If any of the project is within the 2 KM radius of market proximity, Shopping centre & habitat centre. 5 – If any of the project is within the 2 KM radius of market proximity, Shopping centre, habitat centre and hospital. 6 – If any of the project is within the 2 KM radius of market proximity, Shopping centre, habitat centre, police centre, metro, bus stand hospital. 7 – If any of the project is within the 2 KM radius of market proximity, Shopping centre, habitat centre, police centre, metro, bus stand hospital, school. Policy Formulation The star rating for this parameter is given on the basis of the comparison of the project done in that state. This will be given on the expert judgement in which the max. score can be six because no state in india have the electronic integrated system for policy acceptance. Rating Parameters
- 32. Inflation rate 1 – If the inflation rate is less than 1 % 2 – If the inflation rate is more than 1 % and less than 1.5 % 3 – If the inflation rate is more than 1.5 % and less than 2 % 4 – If the inflation rate is more than 2 % and less than 2.5 % 5 – If the inflation rate is more than 2.5 % and less than 3.5 % 6 – If the inflation rate is more than 3.5 % and less than 6 % 7 – If the inflation rate is more than 6 % Project Participant 1 – If project participant have completed more than 0.3 Million Sqft. 2 – If project participant have completed more than 0.6 Million Sqft. 3 – If project participant have completed more than 1 Million Sqft. 4 – If project participant have completed more than 1.5 Million Sqft. 5 – If project participant have completed more than 2 Million Sqft. 6 – If project participant have completed more than 2.5 Million Sqft. 7 – If project participant have completed more than 3 Million Sqft. Rating Parameters
- 33. Safety 1 – If the accident rate for that contractor is more than fifteen people injured during the project. 2 – If the accident rate for that contractor is less than fifteen people injured during the project. 3 – If the accident rate for that contractor is less than twelve people injured during the project. 4 – If the accident rate for that contractor is less than ten people injured during the project. 5 – If the accident rate for that contractor is less than eight people injured during the project. 6 – If the accident rate for that contractor is less than five people injured during the project. 7 – If no people injured during the project. Rating Parameters
- 34. Time 1 – If contractor take average six month more than the promise date of handover. 2 – If contractor take average three month more than the promise date of handover. 3 – If contractor take average two month more than the promise date of handover. 4 – If contractor take average one month more than the promise date of handover. 5 – If contractor take average zero month more than the promise date of handover. 6 – If contractor handover one month before the promise date of handover. 7 – If contractor handover six month before the promise date of handover. Rating Parameters
- 35. CRISIL REALESTATE STAR RATING
- 36. ATS Dolce
- 37. ATS Dolce Type of project Residential Location of project Plot No. GH-12 A, Sector Zeta One, G reater Noida Type of developme nt On lease from Greater Noida Ind ustrial Development Authority ( GNIDA) Land area 14 acres Total saleable area 2.43 million square feet (sq ft). No of blocks 13 No of units 1308 apartments +14 villas Unit configuration 2, 3 and 4 BHK (1240,1500, 1540, 180 0, 2315 & 2800 sq ft) No. of floors Up to Ground Floor + 29 floors Loading on carpet area 32 percent to 36 percent Base price Rs.4.3 million to Rs.9.8 million (N ov 2013) (Super Built Up)* Rs.4.7 million to Rs.10 million (July 201 4) (Super Built Up)* Rs. 5.2 million to Rs.12 million (Dec 2 015) (Super Built Up)* Stamp duty As per competent authority Registration charges As per competent authority VAT As per competent authority Service tax As per competent authority Legal charges Not specified Parking charges Nil Maintenance deposi t Rs.50,000 Power back-up Rs.1,00,000 Project Profile Pricing Table
- 38. ATS Dolce Sponser Profile Name of the project ATS Dolce Name & address of the company developing the project Domus Greens Pvt. Ltd. 711/92, Deepali, Nehru Place, New D elhi -110019 Name of the developer group ATS Group Promoters/partners/managing director Chairman and Managing Director - Mr. Getamber Anand Directors - Mr.Vipul Maheshwar i, Mr. Nitin Goel, Mr. Sharat Sin ghee Developer website www.atsgreens.com Track record in years 17 years (Since 1998)
- 39. Krish City – Phase II
- 40. Krish City – Phase II Type of project Residential Location of project Alwar By-pass Road, Bhiwadi Type of developmen t Bought Out Start date of project May 2012 Possession commit ted to customer as per sale agreement May 2015 (36 months from co mmencement of construction w ith a grace period of six months ) Total saleable area 1.35 million square feet Percentage of phys ical completion as on September 201 5 98 per cent Name of the project Krish City-Phase II Name & address of the company d eveloping the proj ect Carnation Developers Private Limite d and Narmada Asbestos Pipes Priv ate Limited 221-223 II nd Floor, Vip ul Agora, M.G. Road, G urgaon, Haryana. Name of the develop er group Krish Group Track record in years 9 (incorporated in 2006) Projects developed til l date 3 (1.2 million square feet) Ongoing projects 7 (3.07 million square feet) Project Profile Participent Table
- 42. NCC Ivory Heights Type of project Residential Location of project Mahadevpura, Bangalore Type of development Joint development Start date of project June 2012 Possession commi tted to customer as per sale agree ment December 2014 + three months of grace period Total saleable area 0.47 million sq ft Name of the project NCC Ivory Heights Name & address o f the company dev eloping the project NCC Urban Infrastructure Ltd, II & III Floor, Veerashiva Bhava n, #17/4, Ramana Maharshi Ro ad, Sadashivnagar, Bengaluru - 560 080 Name of the develop er group NCC Ltd Track record in years 7 (Since 2005) Projects developed till date 6 (1.39 million square feet [sq ft] ) Ongoing projects 3 (1.34 million sq ft)
- 44. Keppel Purvankara Type of project Residential Location of project Doddaballapur main R oad, Yelahanka, Bengal uru Type of development Joint development Start date of project December 2007 Possession committed to c ustomer as per sale agree ment December 2009 + grace perio d of 3 months Total saleable area 0.52 million sq ft Percentage of physical com pletion as on June 2011 100.per cent Name of the project Nagarajuna Meadows – Phase I Name and address of developer NCC Urban Infrastructure Ltd. II & III Floor, Veerashiva Bhavan, #17/4 , Ramana Maharshi Road, Sadashi vnagar, Bengaluru - 560 080 Name of developer g roup NCC Ltd Track record in years 6 years (Since 2005) No. of projects devel oped till date 3 (0.87 million sq ft) No. of ongoing proje cts 06 (2.9 million sq ft)
- 45. Success Factors ATS Dolce Krish City – Ph ase II NCC Ivory Heights Keppel Purvankar a Geographical Factor 6 7 6 7 Sales of the product 5 7 5 7 Quality 6 6 4 7 Returns (IRR) 5 7 4 7 Policy Formulation 4 4 6 6 Inflation Rate 5 7 5 7 Cost 5 5 4 7 Project Participant 7 7 6 7 Ease in government policies 5 5 5 6 Bribery and corruption 4 4 5 6 Safety 5 5 5 7 Time 3 3 2 7 Political stability/Instability of the government 3 3 3 6 Taxation Structure of that st ate 4 4 4 6
- 46. Success Factors The Crest Kings Court Calcutta Metropolit an Keppel Purvankar a Geographical Factor 0.52 0.61 0.52 0.61 Sales of the product 0.43 0.60 0.43 0.60 Quality 0.50 0.50 0.33 0.58 Returns (IRR) 0.41 0.58 0.33 0.58 Policy Formulation 0.33 0.33 0.49 0.49 Inflation Rate 0.40 0.56 0.40 0.56 Cost 0.35 0.35 0.28 0.49 Project Participant 0.49 0.49 0.42 0.49 Ease in government policies 0.33 0.33 0.33 0.40 Bribery and corruption 0.26 0.26 0.33 0.39 Safety 0.32 0.32 0.32 0.45 Time 0.18 0.18 0.12 0.43 Political stability/Instability of the government 0.18 0.18 0.18 0.35 Taxation Structure of that st ate 0.17 0.17 0.17 0.26 Total Rating 4.88 5.76 4.66 6.68
- 47. Rating System Scale The Crest Kings Court Calcutta Metropolitan Keppel Purvankara CRISIL Rating 7 5 6 5 7 TPS Rating 7 4.88 5.76 4.66 6.87
- 48. Case Study 1 UP Country
- 49. Case Study 1 UP Country
- 50. Site Area: 100 Acre Location: Greater Noida Start date: January 2012 Completion: December 2017 Sector: Residential Work Status: Under Construction Type Area (sqft) Units No. Of Floors Villa 810-4500 312 G+1, G+2 Tower 625-1125 14 (8-12 /Floor ) G+20 Plots 900-1800 636 - FDI Investment: 42% of total project cost. FDI Investor: StanChart RE investors Country: Mauritius Year of Investment: 2012 Case Study 1 UP Country
- 51. Case Study 1 UP Country Success Factors Avg. Rating Weightage Parameter Range Rating Returns (IRR) 4.70 0.087 6 0.52 Sales of the product 4.65 0.086 5 0.43 Geographical Factor 4.50 0.083 5 0.42 Quality 4.45 0.082 5 0.41 Policy Formulation 4.45 0.082 5 0.41 Inflation Rate 4.35 0.080 5 0.40 Cost 3.80 0.070 6 0.42 Project Participant 3.75 0.069 4 0.28 Ease in government policies 3.60 0.067 5 0.33 Bribery and corruption 3.55 0.066 5 0.33 Safety 3.45 0.064 5 0.32 Time 3.30 0.061 3 0.18 Political stability/Instability of the government 3.20 0.059 5 0.30 Taxation Structure of that st ate 2.35 0.043 5 0.22 4.97
- 52. Case Study 2 Hill Town
- 53. Case Study 2 Hill Town
- 54. HillTow n Case Study 2 Hill Town
- 55. Case Study 2 Hill Town Site Area: 140 Acre Location: Gurgaon Start date: January 2015 Completion: December 2020 Sector: Residential Work Status: Under Construction Type Area (sqft) Units No. Of Floors High Rise 1200 - 2695 27 G+4 Tower 15 G+24 FDI Investment: 60% of total project cost. FDI Investor: Qatar Investment Authority Country: Qatar Year of Investment: 2015
- 56. Success Factors Avg. Rating Weightage Parameter Range Rating Returns (IRR) 4.70 0.087 7 0.61 Sales of the product 4.65 0.086 6 0.60 Geographical Factor 4.50 0.083 5 0.58 Quality 4.45 0.082 6 0.58 Policy Formulation 4.45 0.082 6 0.49 Inflation Rate 4.35 0.080 6 0.56 Cost 3.80 0.070 6 0.49 Project Participant 3.75 0.069 4 0.49 Ease in government policies 3.60 0.067 6 0.40 Bribery and corruption 3.55 0.066 6 0.39 Safety 3.45 0.064 5 0.45 Time 3.30 0.061 5 0.43 Political stability/Instability of the government 3.20 0.059 6 0.35 Taxation Structure of that st ate 2.35 0.043 6 0.26 5.74 Case Study 2 Hill Town
- 57. Conclusion After the indicators were selected for the framework, their relative weightage in overall framework of success was determined using statistical tools and based on these weightages and ranks obtained above, a new performance measurement framework was proposed. Using this framework, a model for measuring the success of a project using a single index was derived and presented in a form of equation and was called Total Project Score. TPS = 0.086IRR + 0.085SP + 0.08PE + 0.043TX + 0.06CT + 0.07CC + 0.063SF + 0.083QA + 0.065BC + 0.083GF + 0.082PF + 0.066EGP +0.059PSI +0.069PP After the validation of the framework with the help of three already rated projects now it is justified that this framework can be used for rating the project for FDI investment.
- 58. Future Improvement The study can further be improved to mitigate following limitations: • The methods of measuring various criteria have been given but their weightages within the indicator have not been ascertained. • The study does not establish a procedure for converting the measurement criteria values t o indicator scores though methods to do this have been suggested while applying it to th e case studies. Though it has been termed a limitation, it at the same time provides organi zations with flexibility to adapt the framework by defining their own procedures for assessi ng measurements of indicators. • The study depends on measurement of various criteria for which good amount of data is r equired which may not be available or difficult to obtain.