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.

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

41. NCC Ivory Heights

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)

43. Keppel Purvankara

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.