Incentivising green rated properties: IGBC Hyd’s repeated requests fall on deaf ears of TG govt

Hyderabad: From the last few years, Hyderabad Chapter of Confederation of Indian Industry’s (CII) Indian Green Building Council (IGBC) has been consistently pursuing the State government to extend incentives, to the buyers and developers, of green certified residential projects. The recommendations, for increasing green building space, submitted to the previous Telangana government have not seen the light of the day, says the newly elected National Vice Chairman of IGBC.

Speaking to Bizz Buzz, C Shekar Reddy, also the Chairman of IGBC Green Property Show 2024 and immediate Past Chair, CII Telangana, said: “Only by the fag end, of the State government in power, did they realise the importance of granting incentives for IGBC certified properties. It has not been implemented yet. Without any incentives we have been struggling to convince the developers. We have not put forward any representation to the current government yet. But, in February, CII had released a ‘Vision’ document in which these recommendations have been included.”

He was present at the announcement of 2nd edition of CII’s IGBC Green Property Show. The event will be held at Hitex exhibition centre in Hyderabad from May 17 to 19, 2024, from 10 am to 8 pm. Green residential projects, products, and technologies will be on display alongside sessions on sustainable practices, drawing and painting competition, and a lucky draw. In the previous edition, the property show witnessed a footfall of 12,000, and participation of 75 exhibitors.

On the incentives laid down by other State governments, Reddy said that the government of West Bengal is giving additional FSI (floor space index) for properties rated by IGBC, wherein platinum rating brings in 10 per cent, gold 7.50 per cent, and silver it is five per cent of additional built-up space. The underlying condition is that once the project is completed the developer has to apply for (get) IGBC certification, post which they will receive the Occupancy Certificate.

“We are seeing more number of developers from Calcutta applying for IGBC certificate. The trend is similar in Pune, Haryana and other States that are offering incentives. The other incentives includes sanctioning approval incentive on the permit fee (external betterment), a few States are giving 10 per cent rebate on property tax, lower interest rate on home loans from financial institutions. Telangana government can also consider giving some incentive in registration charges which will definitely force the buyer to opt for IGBC rated projects,” Reddy pointed out.

Currently, Hyderabad has 850 green certified projects, and 1.12 billion sft of green building space. In a year, 100 properties have got added to the current count. Telangana ranks third, after Maharashtra and Uttar Pradesh, with 30.9 crore sft of registered green foot print of residential projects. In terms of green dwellings, the State ranks fourth with 2.64 lakh units.

According to Reddy, Telangana can elevate its ranking by offering incentives and creating awareness about the benefits of green buildings. He said, “Only people and developers mindset is hindering adoption of green ratings. Once they get to know that cost escalation against traditional construction methods is not more, they are adopting. If a buyer gets incentive, the demand for green rated buildings will increase, in turn, the developer will have no choice but to develop projects based on IGBC ratings.”

M Anand the Deputy Executive Director of IGBC informed that India ranks 2nd in the world green building space with 11.67 billion sft of green building footprint. India is adding one billion sft from 2023 onwards, and CII IGBC is aiming to achieve two billion sft per year.