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Incentives, Certifications At Heart Of Gujarat's Green Building Push

The state government's regulation, necessitating green certification for infrastructure, along with incentives and penalties, should lay the groundwork for robust green construction in the state. The first installment of a three-part series

When Gujarat Chief Minister Bhupendra Patel, on September 6, announced his public interest decision to promote sustainable development by encouraging green buildings, he was chiming with the Centre's Economic Survey 2023-24, which states that "India’s ethos emphasises a harmonious relationship with nature, which is in sharp contrast to the over-consumption prevalent in the developed world... to achieve over-consumption rather than addressing over-consumption itself… gives importance to the label under which their lifestyle can continue, instead of bringing about a change in their lifestyle.”

Current ways of lifestyles prioritised by urbanised landscapes bear a lot of potential for sustainable changes, such as the one launched by the government of Gujarat. It can potentially be an important addition to the extant Comprehensive General Development Control Guidelines (CGDCG), which are standardised regulations that appropriate development authorities use and impose on all kinds of urban and town planning ventures

To promote energy efficient buildings and reduce carbon emissions in the construction sector, the CGDCG proposes that an incentive in the form of a 7-12 per cent discount on chargeable FSI (Floor Space Index) will be given to builders of "green buildings" that are either certified by the IGBC (Indian Green Building Council) or GRIHA (Green Rating for Integrated Habitat Assessment) — both national ratings systems for completed construction — depending on the rating from these agencies. 

FSI is the ratio of the combined gross built-up area of all floors, to the total area of the building-unit or the total land area of the plot. There is a Base FSI, on which the competent authority does not impose a fee, and a Chargeable FSI, available on payment for an increased Floor Space Index. 

The New Provision: Penalty For Non-Compliance

The state government has now introduced a penalty for non-compliance with these provisions, set at twice the amount of the FSI incentive. 

“When applying for Gold and Platinum certificates, the electricity consumption can be reduced by 40 per cent, and water consumption by 30-60 per cent. All of the five elements (earth, water, fire, air, ether) are kept in mind in the designing criteria, including the sites surrounding the building, in which 50 per cent of green cover is mandatory. Such policies are already in place in Rajkot’s Smart City Plan, and we are positive about its impact," IGBC (Ahmedabad) chairman Jayesh Hariyani told The Secretariat.

Formed in 2001, IGBC is a government recognised council offering a wide array of services, including the development of new green building rating programmes and certification services.

According to IGBC Ahmedabad, currently, there are around 167 IGBC-certified projects in Ahmedabad and Gandhinagar, with 103 projects in Ahmedabad alone. Of the total certified projects, 61 are certified Platinum. 

Existing state incentives include the Comprehensive General Development Control Regulation 2017, which states that the competent authority shall offer 5 per cent discount on the total sum of the Chargeable FSI, if the owner has applied for GRIHA (Green Rating for Integrated Habitat Assessment) rating certification prior to the commencement of the project. 

“Over the past decade, incentives such as the 5 per cent discount have gone a long way in encouraging builders to start putting in effort to acquire certifications, but they fell short of being alluring. A simple tax rebate wasn’t very motivating," said Hariyani, adding, "With the new policies and incentives, they begin to learn more about the benefits of green buildings. Incentives drive motivation. Some mature builders are already reaping benefits in the city by claiming higher rent on the lease of their lands

Under the new notification, builders will be able to apply for extra FSI at discounted charges, if their buildings apply for green building certifications from any of the recognised agencies — a win-win deal, given that the basis of green construction is energy conservation and cost reduction. 

What Are Green Buildings? 

When planning a green building project, design and construction professionals consider strategies to maintain an environmentally appropriate site, complemented by an environment-friendly transport plan that also protects and restores the natural habitat, controlling stormwater and reducing heat island effect using traditional and local materials. Such projects also enhance energy efficiency with features like insulation, cross-ventilation, efficient water fixtures, waste-water management, rainwater harvesting and recharging through rain gardens and catchments that prevent runoff. 

By their very nature, they use less water while trying to conserve it, optimise energy efficiency, conserve natural resources, generates less waste and provide healthier spaces for occupants

“In buildings, the cost of air-conditioning per square feet is reduced, as the building is made in a manner that keeps it significantly cooler. Water fixtures are efficient, they reduce its demand and use, so the pumps needed are also smaller. The design encourages lower electricity usage during daytime. All of these are low-hanging fruits,” Hariyani said.

A news report by the International Finance Corporation, which is part of the World Bank Group, notes what makes a structure green: Windows allow ample light in, let the air cross-ventilate, lowering the energy needed for both electricity and cooling inside; clay bricks are replaced by flyash bricks or autoclaved aerated concrete (AAC) blocks which are lighter and more stable than red bricks and give homes thermal and sound insulation; rooftop solar panels generate electricity on-site, reducing electricity bills; applying eco-friendly paints with reduced levels of VOC (Volatile Organic Compound), which have a 45 per cent more solar reflectivity, reducing energy requirement for cooling the indoors. 

While the building cost is around 2 per cent more than conventional buildings, they are an investment whose cost is covered in a few years, with additional health, environmental and cost benefits. 

“Due to the heat absorption and non-porosity of our conventional building material, heat index is on the rise. Today, we can use porous cement blocks, which are aerated and cost saving; dry cladding panels that keep buildings cool. Using more porous material for parks, walkways and pavements, along with vertical green screens and terrace gardens, are all highly recommended, and now readily available,” said Hariyani. 

Other Existing Green Construction Provisions

The Industry and Mines Department, which encourages green practice and environmental audit for MSMEs, released a financial incentive-based scheme for industrial buildings of over 2,000 sq m built-up area, with green ratings from GRIHA/IGBC/LEED. Under this scheme, such buildings get discount of up to 50 per cent of consulting charges or Rs 2.5 lakh, whichever is less.

Meanwhile, the state Climate Change department offers reimbursement of up to Rs 3 lakh or 50 per cent of the IGBC certification fee, whichever is less, to projects that seek green certification from IGBC. 

“Our new development regulation in Rajkot's Smart City plan stands proof that we can venture out on similar lines in Ahmedabad. We are working towards that. The rate of our urbanisation and population growth poses a challenge, but that's all the more reason to take this seriously. Policy-based intervention, compulsion and penalisation is the way forward,” said Hariyani. 

With an increase in discount percentage and the added penalty for evasion of guidelines, this move towards active, policy-bound action in the construction and building sector was awaited. Gujarat, with the fifth highest GDP in the country and the second-highest energy consumption, can be hopeful to improve its stint with inculcating green construction into its cityscapes.

(Part 2 will highlight why green infrastructure is necessary, and where Gujarat stands in greening its construction sector)

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