Government Incentives to Promote Green Building certified Projects

Government bodies of India have addressed the need to adopt sustainable building practices to promote energy optimization and conscious use of natural resources to reduce greenhouse gas emissions. Many schemes, subsidies, and incentives for certified green buildings have been developed.

Government incentives for IGBC (Indian Green Building Council) certified projects:

1. Government of India:

• The Ministry of Environment, Forest and Climate Change (MoEFCC)- Easy environmental clearance for projects that are IGBC Precertified or Provisionally Certified.

2. Government of Punjab:

• Department of Local Government (Town Planning Wing)  - Additional 5% Floor Area Ratio (FAR) free of charge for IGBC Gold-rated projects and above

• Department of Housing and Urban Development- Additional 5%, 7.5% and 10% Floor Area Ratio (FAR) free of cost with 100 % exemption of building scrutiny fee for projects that are IGBC rated Silver, Gold, and Platinum respectively.

3. Government of Rajasthan

• Urban Development Department- Additional 0.075%, 0.10%, and 0.15 % FAR free of charge for IGBC Silver, Gold, and Platinum rated projects respectively.

• Rajasthan Investment Promotion Scheme 2019 -This scheme offers a subsidy to Micro, Small and Medium Enterprises (MSME) sectors by 50% reimbursement of the amount paid to the suppliers by the plant for adopting Green Building Measures, this does not include civil work and is a maximum of 50 Lakh rupees. Only buildings above 2000 sq.m of floor space are eligible for this one-time assistance.

4. Government of West Bengal

• Department of Municipal Affairs - Kolkata Municipal Corporation - Additional 10% FAR for Precertified/ Provisionally Certified projects which are Gold or above by IGBC.

• New Kolkata Development Authority- Additional 10% FAR for Precertified/ Provisionally Certified projects which are Gold or above by IGBC.

5. Government of Uttar Pradesh

• Housing and Urban Planning Department - Additional 5% FAR free of cost for projects that are IGBC gold-rated or above.

• Greater Noida Industrial Development - Additional 5% FAR free of charge for projects which are IGBC Gold rated or above.

6. Government of Andhra Pradesh

• The Industries & Commerce Department - 25% subsidy on total fixed capital investment of the project (excluding land cost and development, preliminary and consultancy fees) for IGBC green-rated MSME and large buildings.

• Municipal Administration and Urban Development - 20% Reduction on Permit Fees and One time 20 % reduction on Duty on Transfer of Property if the property is sold within 3 years of certification. This requires you to submit the Occupancy certificate issued by the local authority.

7. Government of Himachal Pradesh

• Town & Country Planning Department - Additional 10% FAR for IGBC gold or platinum rated projects.

8. Government of Jharkhand

• Urban Development and Housing Department - Additional FAR of 3%, 5%, and 7% for IGBC Silver-rated Green Buildings and above.

9. Government of Haryana

• Town & Country Planning Department - 2018 Additional FAR (Floor Area Ratio) of 9%, 12%, and 15% for IGBC Silver rated and above green buildings as per amendment in chapter 6 of the Haryana Building Code 2017 on 8 May

10. Government of Maharashtra

• Urban Development Department - Additional FAR of 3%, 5%, and 7% for IGBC Silver, gold, and platinum-rated green buildings respectively.

• Pune Municipal Corporation with Pune Metropolitan Region Development Authority - Additional FAR of 3%, 5%, and 7% for IGBC Silver, Gold, and Platinum rated green buildings respectively.

• Public Works Department (PWD) - Mandated that all new government buildings and renovation of existing government buildings comply with the IGBC Green Building Rating system.

11. Government of Gujarat

• Industries Commissionerate, Industries and Mines Department - Subsidy of 50% on consulting charges, with a maximum limit of 2.50 lakh rupees, for IGBC green-rated Industrial Buildings.

12. Small Industries Development Bank of India (SIDBI) provides financial assistance for all IGBC rated green building projects in the MSME sector.

13. Sunref - Affordable Green Housing India program - Refinancing at competitive interest rates for designated Primary Lending Institutions (PLIs). These loans are meant for buyers and project developers of residential projects (EWS, LIG, MIG income groups) that achieve Gold or Platinum under IGBC Green Homes Rating and IGBC Green Affordable Housing Rating. The cost of IGBC certification is also reimbursed as part of this program.

Government Incentives for GRIHA (Green Rating for Integrated Habitat Assessment) certified projects.

1. Government of India

• The Ministry of Environment, Forest and Climate Change (MoEFCC) - Fast track environmental clearance for projects that are GRIHA Precertified or Provisionally.
• Ministry of Urban Development - Additional 1% to 5% extra ground coverage and FAR free of cost for GRIHA projects more than 3000 sq.m

2. NOIDA and Greater NOIDA - Additional 5% FAR free of cost for GRIHA 4 and 5 rated buildings above 5000 sq.m.

3. Pimpri Chinchwad Municipal Corporation (PCMC)

• The developments in PCMC get a discount on the premium amount of building permission charges depending on the building GRIHA rating as mentioned below:

• Discount in Property Tax for homeowners - The homeowner of the green building will get a 10% discount on property tax.

• SVA GRIHA Incentive (Simple Versatile Affordable GRIHA) for developers - Depending on the SVA GRIHA star rating, the developer can avail discount in the premium as mentioned below

• The SVA GRIHA property tax benefit for homeowners- This discount in property tax for homeowners is in addition to the existing discounts offered by the Municipal Corporation like the 10% discount to early taxpayers and the 10% discount for females. All properties certified under SVA GRIHA can avail of this discount as mentioned below.

4. Small Industries Development Bank of India

• Concession in the rate of interest is provided by SIDBI to green buildings certified by Accredited rating agencies like GRIHA, presently for 50 points above.

5. Government of Punjab  

• The Department of Housing and Urban Development - As per the Punjab Regional and Town Planning and Development Act, 1995 Additional 5% FAR free-of-charge projects that provide relevant certification from BEE (Bureau of Energy Efficiency) and for GRIHA projects to ensure resource optimization in the construction industry.

The above incentives may vary based on the type of certification, Project area, etc.