Assessment of Barriers in Value Capture Financing for MRT Systems

The study focused on understanding the barriers to implementing Value Capture Finance (VCF) mechanisms rooted in the ‘Beneficiaries Pay’ principle. VCF allows public authorities to harness increased land values generated by urban infrastructure investments and reinvest the gains into current and future development projects, promoting financially sustainable urban growth.

The scope included reviewing existing VCF practices, evaluating land value capture tools, and analyzing two international and two national case studies. The study employed stakeholder consultations and secondary data analysis to understand practical challenges. Emphasis was placed on identifying institutional, regulatory, and operational barriers to adopting VCF across various urban contexts.

The project culminated in a set of actionable recommendations and a framework to overcome implementation challenges for VCF. It offered insights into aligning stakeholder interests, improving policy design, and enhancing institutional readiness. Key deliverables included a case study compendium, barrier analysis report, and a strategic framework to support wider adoption of value capture mechanisms in India.