What is Value Capture Financing?

Q.  What is Value Capture Financing?
- Published on 09 Nov 16

a. Financing that leads to increase in value of land or enterprise
b. Recover some or all of the value that public infrastructure generates for private landowners
c. Financing to industries that are primarily involved in value addition
d. Financing that will lead to stop in downfall in value or prices.

ANSWER: Recover some or all of the value that public infrastructure generates for private landowners
 
  • Value capture is a type of public financing that recovers some or all of the value that public infrastructure generates for private landowners.
  • The Ministry of Urban Development will soon come out with a policy framework for an innovative resource mobilization through Value Capture Financing (VCF).
  • This seeks to enable States and city governments raise resources by tapping a share of increase in value of land and other properties like buildings resulting from public investments and policy initiatives, in the identified area of influence.

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