The construction industry is responsible for producing the 2nd largest amount of demolition waste and greenhouse gases (35-40%). The construction phase of the building involves major consumption of energy. In addition to this, amenities like lighting, air conditioning, water heating systems that provide comfort to the building inhabitants consumee enormous amount of energy and add up to the pollution levels.
There is a relentless need for adopting more sustainable building practices to break the deterioration happening to the environment. Green buildings promise to be a great source to reduce the overall Carbon footprint, but sadly this is something that has been hugely overlooked in India, but why? Well, it is due to the lack of meaningful incentives for home buyers and builders alike, which has discouraged large-scale constructions of green buildings.
The State Of Green Buildings In India
Let’s begin with some good numbers, the Indian green building market is projected to double by 2022 at 10 billion sq. ft, valuing around USD 35-50 billion. According to property consultant ANAROCK, this growth is increasingly attributed to growing awareness level, environmental benefits and yes GOVERNMENT SUPPORT.
Irrespective of being in its nascent stage, India is emerging as one of the leading countries in terms of green buildings’ projects. In fact, India ranks 2nd after the United States in terms of the number of green technology projects and built-up area. According to the report ‘Go Green – The Mantra for Sustainable Living’ by ANAROCK, more than 4,300 projects with about 4.7 billion sq. ft of built-up area had registered for green technology as of September 2017. But this does not even account for 5 percent of the total green building footprint in the country. Hence there is a huge potential for further penetration of green building technologies in the country. Sluggishly yet gradually, green buildings are growing in India.
Which States In India Incentivise ‘Green Building’ Construction?
In a bid to promote green buildings in India, few of the state governments and local bodies are providing incentives to those who get their building green-certified, and IGBC is leading the green building movement in the country.
IGBC is very closely working with several Central and State Government agencies to promote the green building movement in the country. Few of the Central and State Government agencies have given recognition to IGBCs’ Green Rating Systems. The list of incentives provided are detailed below:
- The Ministry of Environment, Forest and Climate Change (MoEFCC), Government of India, offers fast track environmental clearance for green building projects which are Pre-certified/ Provisionally Certified by IGBC.
- All IGBC rated green building projects in the MSME sector shall be eligible for financial assistance at concessional rates from Small Industries Development Bank of India (SIDBI).
Below are the states that provide extra FAR (Floor-to-area ratio) for green buildings.
Department of Local Government (Town Planning Wing) offers an additional 5% Floor Area Ratio (FAR) free of charge for projects which are rated Gold or above by IGBC.
Department of Housing and Urban Development, Government of Punjab offers an incentive of additional 5% Floor Area Ratio (FAR) free of charge and 100 % exemption of building scrutiny fee for projects which are rated Gold or above by IGBC
Urban Development and Housing (UDH) Department, Government of Rajasthan offers additional 5% FAR free of charge for projects which are rated Gold or above by IGBC.
- West Bengal
Government of West Bengal (Department of Municipal Affairs – Kolkata Municipal Corporation) offers additional 10% FAR for projects which are Pre-certified/ Provisionally Certified as Gold or above by IGBC.
Government of West Bengal (New Kolkata Development Authority) additional 10% FAR for projects Pre-certified/ Provisionally Certified as Gold or above by IGBC.
- Uttar Pradesh
Government of Uttar Pradesh (Housing and Urban Planning Department) – Additional 5% FAR free of charge for projects which are rated as Gold or above by IGBC.
Additional 5% FAR free of charge is offered by the Greater Noida Industrial Development Authority (GNIDA) in Uttar Pradesh for projects which are rated as Gold or above by IGBC.
Pune Municipal Corporation (PMC) and Pune Metropolitan Region Development Authority (PMRDA), Government of Maharashtra offers an additional FAR of 3%, 5% and 7% for Green Buildings rated as Silver, Gold and Platinum respectively by IGBC.
- Andhra Pradesh
The Industries & Commerce Department offers 25% subsidy on total fixed capital investment of the project (excluding cost of land, land development, preliminary and preoperative expenses and consultancy fees) for buildings which obtain green rating from IGBC. This incentive is applicable for MSME and large industries.
Municipal Administration and Urban Development Department offers the following incentives to projects obtaining the rating from IGBC:
- 20% Reduction on Permit Fees
- If the property is sold within three years, one-time reduction of 20% on Duty on Transfer of Property (Surcharge on Stamp Duty) on the submission of Occupancy Certificate issued by the Local Authority.
Government of Himachal Pradesh (Town & Country Planning Deptt) offers an additional 10% FAR for projects which are granted Gold / Platinum rating by IGBC.
Urban Development and Housing Department, Government of Jharkhand offers an additional FAR of 3%, 5% and 7% for Green Buildings rated by IGBC as Silver, Gold and Platinum respectively.
Government of Haryana (Town & Country Planning Department), offers an additional FAR (Floor Area Ratio) of 9%, 12% and 15% for Green Buildings rated as Silver, Gold and Platinum respectively by IGBC.
Although the government is pushing to encourage sustainable developments, the current incentives aren’t enough. The ideal incentive, for the developer and the buyer, would be in terms of money and time. It is crucial that more and more governments bodies start providing attractive incentives for fast-tracking green building developments in the country.
Curated by editor at Wienerberger India