We Conserve Consultants are committed to advancing the green building Movement across the country. To aid these efforts, various central and state government agencies provide incentives for green building projects. They acknowledge the important environmental and economic advantages these initiatives offer.
Green Building Incentives Overview
Green buildings are designed to reduce the overall impact of the built environment on human health and the natural environment. They achieve this by efficiently using energy, water, and other resources, protecting occupant health, and reducing waste, pollution, and environmental degradation.
The Ministry of Environment, Forest and Climate Change (MoEFCC)
The Ministry of Environment, Forest and Climate Change (MoEFCC), Government of India, offers fast track environmental clearance for green building projects.
Government of Andhra Pradesh
Municipal Administration and Urban Development Department offers incentives to projects obtaining the Green Building rating.
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. This incentive is applicable for MSME and large industries.
Government of Goa
Government of Goa (Town & Country Planning Department) as per the new Official Gazette EXTRAORDINARY No. 2 published on 9th August, 2023, offers additional FAR of 10% may be granted with the approval of the Government, for Green Building projects which will be pre-certified/provisionally certified. All such project proponents availing this additional FAR shall be issued Completion Certificate with the approval of the Government post certification and this Certification shall be renewed every 5 years.
Government of Gujarat
Refinancing at competitive interest rate, as part of the Sunref – Affordable Green Housing India programme designated Primary Lending Institutions (PLIs). The loans from these PLIs is meant for buyers and project developers of residential projects (targeting EWS, LIG, MIG income groups) which achieve Gold or Platinum under Green Homes Rating and Green Affordable Housing Rating. The developers of such projects can also get the cost of certification reimbursed as part of the Sunref programme.
Climate Change Department offers reimbursement up to INR 3 lakhs OR 50% of Certification fee, whichever is lesser, to projects obtaining green building certification.
Industries Commissionerate, Industries and Mines Department provides incentive upto 50% of consulting charges, with a maximum limit of INR 2.50 lakh, for Industrial Buildings with green rating.
Gujrat Tourism Policy 2021-25 offers reimbursement of 50% of Certification fee, with a maximum limit of INR 10.0 lakh, to hotel / wellness resorts obtaining green rating.
Government of Haryana
Government of Haryana (Town & Country Planning Department) per amendment in chapter 6 of the Haryana Building Code 2017 on 8 May 2018, offers an additional FAR (Floor Area Ratio) of 9%, 12% and 15% for Green Buildings rated as Silver, Gold and Platinum respectively.
Government of Himachal Pradesh
Government of Himachal Pradesh (Town & Country Planning Deptt) an additional 10% FAR for projects which are granted Gold / Platinum rating.
Government of Jharkhand
Urban Development and Housing Department, Government of Jharkhand an additional FAR of 3%, 5% and 7% for Green Buildings rated as Silver, Gold and Platinum respectively.
Government of Kerala
Local Self Government Department has approved up to 50% reduction in One time building tax, up to 1% reduction in Stamp duty and up to 20% reduction in Property tax for projects obtaining green building certification.
Government of Maharashtra
Incentive on Integrated Townships – UDCPR Maharashtraas per updated UDCPR 2020, has mandated that the buildings in Integrated Township Project have at least Silver rating.
Public Works Department (PWD), Government of Maharashtra has mandated that the renovation of existing buildings and the development of all new government buildings in Maharashtra shall be carried out as per the suitable Green Building Rating system.
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.
Urban Development Department offers an additional FAR of 3%, 5% and 7% for Green Buildings rated as Silver, Gold and Platinum respectively.
Government of Punjab
Department of Housing and Urban Development, Government of Punjab offers an incentive of additional 5%, 7.5% and 10% FAR free of charge with 100 % exemption of building scrutiny fee for projects which are rated Silver, Gold and Platinum respectively.
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.
Government of Rajasthan
Rajasthan Investment Promotion Scheme – 2019 offers Enterprises of MSME sector a subsidy in the form of reimbursement of 50% of amount paid to the suppliers for the plant, excluding civil work, for adopting Green Building Measures (means process or technology adopted to obtain green rating under Indian Green Building Council) for building having a minimum floor space of 2,000 sq mtrs, subject to a maximum of Rs Fifty Lakhs only and this shall be a one time assistance.
Urban Development Department offers additional 0.075, 0.10 and 0.15 BAR free of charge for projects which are rated Silver, Gold and Platinum respectively.
Government of Tamil Nadu
Tamil Nadu Integrated Townships Development Draft Policy 2022, mandate the developer to comply with Green Building rated norms for the Integrated Township.
TN Data Centre Policy 2021, offers Data Centre Units undertaking green and sustainable initiatives as per Green Building rating shall be eligible for a 25% subsidy on cost of undertaking such initiatives, subject to an upper limit of Rs. 5 Crore. (Document attached to be linked with TN data Centre Policy 2021)
TN Industrial Policy 2021, offers a 25% subsidy on the cost of setting up environmental protection infrastructure, subject to a limit of Rs. 1 cr., for industrial projects that obtain green certification. Projects establishing or expanding industrial units, industrial parks, R&D projects, warehousing and logistics parks shall be eligible for availing this Green Industry Incentive.
Government of Uttar Pradesh
Tourism Policy 2022-2032 offers reimbursement of 50% of Certification fee, with a maximum limit of INR 10.0 lakh, to hotel/wellness resorts obtaining green rating from Indian Green Building Council.
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.
Government of Uttar Pradesh (Housing and Urban Planning Department): 10% FAR for projects which are Precertified/ Provisionally Certified as Gold or above.
Government of West Bengal
All 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).
B. Government of West Bengal (New Kolkata Development Authority) additional 10% FAR for projects Precertified/ Provisionally Certified as Gold or above.
A. Government of West Bengal (Department of Municipal Affairs – Kolkata Municipal Corporation)additional 10% FAR for projects which are Precertified/ Provisionally Certified as Gold or above.
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