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Title: GRIHA incentives and implementation mechanisms: catalyst for climate

change mitigation and adaptation

Contents

Abstract
Green building rating systems are effective for implementing climate change mitigation strategies.
GRIHA facilitates implementation of relevant policies of the Government of India, and embeds
climate adaptation measures within the design, construction and operational phases of building
project development. 17 States provide incentives at municipal levels to projects that certify with
GRIHA rating.

ClimateSMART Cities Assessment Framework (CSCAF), which is a major culmination of Government


of India schemes, provides for implementation of energy efficiency and green buildings through
adoption and incentivisation of green building rating systems. However, only 25/100 smart city
proposals have included green building rating systems to achieve essential goals. Based on feedback
from certification agencies, project proponents, and government officials, there is need for
information dissemination and guidance on institutional mechanisms for incentivising green rated
projects at the local level.

This paper examines existing institutional mechanisms for incentivising GRIHA rated projects, and
provides recommendations for municipal bodies to meet relevant CSCAF requirements.

Key words
Green building policies, GRIHA incentives, implementation of green incentives, institutional
mechanisms, climate change mitigation and adaptation

1. Introduction
Construction and climate change in India

India’s Intended National Determined Contribution (INDC) under the Paris Agreement (2015) include
key commitments towards (i) reduction in the emissions intensity of GDP by 33 to 35 per cent by
2030 from 2005 level, (ii) 40% of power capacity to be based on non-fossil fuels and (iii) creating an
additional carbon sink of 2.5 to 3 billion tonnes of CO 2 equivalent through added forest and tree
cover by 2030. (1)

The India Second Biennial Update Report to the United Nations Framework Convention on Climate
Change, states that (i) the emission intensity of India’s Gross Domestic Product (GDP) has reduced by
21% over the period of 2005 – 2014, (ii) by March 2018, 35% of power capacity is based on no-fossil
fuels, and (iii) emissions avoided by forest cover fall by more than half between 2010-14, where tree
cover doubles in the same period.(2)

1( )
India NDC. INDCs as communicated by Parties. United Nations Framework Convention on Climate Change.
[Online] 1 October 2015. https://www4.unfccc.int/sites/submissions/INDC/Published%20Documents/India/1/
INDIA%20INDC%20TO%20UNFCCC.pdf.
2()
Ministry of Environment, Forest and Climate Change, Government of India. Second Biennial Update Report
to the United Nations Framework Convention on Climate Change. United Nations Framework Convention on
Climate Change. [Online] December 2018. MoEFCC. (2018). India: Second Biennial Update Report to the United

14
The progress by India has also been acknowledged by the United National Environment Program
(UNEP) in its Emission Gap Report 2016, where India has been recognized for being on course for
achieving its voluntary goals, without purchasing offsets.

While India’s INDC are not binding to sector specific mitigation obligation or action, the goal is to
reduce overall emission intensity, improve energy efficiency of the economy over time, and protect
vulnerable sectors of economy and segments of society. Key priority areas identified for achieving
India’s INDCs include, “promoting energy efficiency in the economy, notably in industry,
transportation, buildings and appliances”. (3)

Nations Framework.
3()
See reference 1.

14
In light of the above
Consumption (%) of electricity by achievements, and given the fact
sectors in India during 2018-19 that domestic and commercial
sectors consume about 33% of
2% 7% Traction&
Railways electricity (4), (5) in India (Figure
8% Misc 1(6)), it can be concluded that the
41% Commercial building sector has played a key
18% Agriculture role in progress towards
Domestic
achieving the INDCs. This has
Industry
25% been accomplished through a
definite plan of action for clean
energy and energy efficiency in various sectors, with key focus on implementation of policies
through green building rating systems Figure 1: Total consumption of electricity by sectors in 2018-19; Source: 6
and other mechanisms.

As per Graham and Rawal (7) and TERI (8), the role of the building sector (residential and commercial)
in meeting India INDC targets for 2030 will be further significant. Electricity demand in residential
and commercial buildings sectors is predicted to rise by 5 folds and 3 folds respectively by 2032 (9).
Furthermore, energy efficiency in the building sector is likely to be the largest contributor (after
industry) in further reduction of emissions intensity of Indian GDP by 2031.

Since green building rating systems facilitate implementation of energy efficiency (among other
benefits), the ClimateSMART Cities Assessment Framework (CSCAF) for the 100 smart cities (10)
provides for inclusion of green building rating systems including Star labelling for buildings by
GRIHA, EDGE, LEED, IGBC, GEM rating systems. The framework also serves as a culmination of other
schemes like Green India Mission, National Clean Air Programme, AMRUT, Swachh Bharat Mission,
and Urban Transport in achieving the objective of being ‘Climate Smart’.

However, only 25/100 smart city proposals have included green building rating systems to achieve
essential goals of Smart City Mission. Based on feedback from certification agencies, project
proponents, and government officials, there is lack of information on institutional mechanisms (11) for
municipal bodies to integrate green rating systems within their existing framework.

4()
Ministry of Statistics and Programme Implementation, Government of India. Ministry of Statistics and
Programme Implementation. Energy Statistics 2019. [Online] March 2019.
http://www.mospi.gov.in/sites/default/files/publication_reports/Energy%20Statistics%202019-finall.pdf.
5()
Bureau of Energy Efficiency, Government of India. Report on Impact of Energy Efficiency Measures for the
year 2018-19. Bureau of Energy Efficiency, Government of India. [Online] March 2020.
https://beeindia.gov.in/sites/default/files/BEE%20Final%20Report_1.pdf.
6()
Central Electricity Authority, Ministry of Power, Government of India. Growth of Electricity Sector in India
from 1947-2019. Central Electricity Authority. [Online] May 2019.
http://www.cea.nic.in/reports/others/planning/pdm/growth_2019.pdf.
7()
Achieving the 2°C goal: the potential of India’s building sector. Graham, Peter and Rawal, Rajan. 2018,
Building Research & Information.
8()
The Energy and Resources Institute (TERI). Energy Efficiency Potential in India. Indo German Energy Forum.
[Online] August 2018. https://www.energyforum.in/fileadmin/user_upload/india/media_elements/
publications/09_Energy_Efficiency_Potential_in_India.pdf.
9()
See reference 5
10()
Smartnet NIUA. ClimateSmart Cities 2.0. Smartnet NIUA. [Online] 2019. https://smartnet.niua.org/
csc/assessment-overview.html.
11()
Climate change risk: an adaptation and mitigation agenda for Indian cities. Revi, Aromar. 2008,
Environment and Urbanization, pp. 207-229.

14
This paper examines existing institutional mechanisms for incentivising green rated projects, and
provides recommendations for municipal bodies to meet relevant requirements of the
ClimateSMART Cities Assessment Framework (CSCAF).

2. Theoretical background
Green building rating systems as implementation tools for climate change mitigation policies

Robust implementation of existing green building policies and formulation of new interventions in
the building sector at the national, state and municipal levels (12), including by providing incentives
for green building rating systems continue to play an important role in achieving India’s INDCs.

Table 1 (13) below indicates percentage savings in resource consumption achieved by green rated
buildings when compared to conventional buildings. Indicative increase in cost of green rated
buildings, which may in part be set off by incentives is also mentioned.
Table 1: Resource savings and incremental costs incurred by rated green buildings; Source: (10)
Certification Type Commercial Residential
Energy Water Solid Waste Waste Water Cost Energy Water Solid Waste Waste Water Cost
Savings (%) savings (%) reduction (%) reduction (%) Increment (%) Savings (%) savings (%) reduction (%) reduction (%) Increment (%)
Green Case 10 40-46 46 28-43 0.7-2.5 35 36-41 46 52-67 0.7-2.2
GRIHA 1 star 36 69-100 51 67-76 2.5-6.6 43 47-72 51 58-81 2.6-3.8
GRIHA 3 Star 54 69-100 55 72-86 6.5-11.9 57 57-83 55 66-88 4.8-5.2
GRIHA 5 Star 61 75-100 60 86-92 9.7-14.8 64 68-90 60 85-88 6.5-7.7
IGBC Silver 36 43-83 46 52-66 3.4-8.1 39 76-97 51 98-100 2.3-5.8
IGBC Gold 53 76-100 46 83-91 5.7-11.9 54 77-97 55 95-96 6.6-9.9
IGBC Platinum 56 76-100 51 83-91 9.1-15.1 59 77-94 60 95-97 6.7-7.7

Furthermore (14), 10 million square metres of GRIHA 5 star certified project can save enough
electricity to power about 1,00,000 urban homes, save enough water to meet needs of 22,000 urban
homes, provide 6MW PV installation to enhance supply and provides monitored data to ensure and
strengthen compliance.

12()
Can low-carbon urban development be pro-poor? The case of Kolkata, India. Colenbrander, Sarah and
Gouldson, Andy, et al. 2017, Environment and Urbanisation, pp. 139-158.
13()
The Energy and Resource Institute. Formulation of Policy Incentives for Promoting Green Buildings in Tamil
Nadu. TERI. [Online] 2016. https://www.teriin.org/sites/default/files/2018-03/2014BG08%20CMDA.pdf.
14()
GRIHA Council. Awareness programme: MCCIA-GEF initiative on GRIHA. Pune : GRIHA Council, 2013.

14
As per the Efficient (EFF) scenario modelled by The Energy and Resources Institute (TERI), 2018,
efficient space conditioning, efficient urban and rural lighting, and efficient refrigeration in the
residential sector has potential to reduce energy intensity by up to 10% by 2031 (Figure 2). Using the
same EFF scenario, higher penetration of GRIHA rated buildings in the commercial sector has a
potential of up to 15% reduction in energy intensity by 2031 (Figure 2).

Figure 2: Reference (REF) and Efficient(EEF) scenarios for reduction in energy intensity by commercial and residential
buildings; Source: (8)

Green building rating systems in India provide implementation mechanisms for national (Figure 3),
state and local level policies (Table 2) to achieve resource efficiency in the built environment. (15), (16),
(17)
They also facilitate monitoring and quantification of building performance (18), which in turn
supports data capture, management and public availability of data (19) towards reporting of India’s
INDCs.

15()
Smartnet. Smartnet Solutions Exchange for Urban Transformation of India. ClimateSmart Cities Assessment
Framework 2.0. [Online] 30 August 2020. https://smartnet.niua.org/csc/assets/pdf/key-documents/indicators/
energy-and-green-building.pdf.
16()
Ministry of New and Renewable Energy, Government of India. Lok Sabha Questions. Lok Sabha Question
and Answer Portal. [Online] 13 December 2018.
http://164.100.24.220/loksabhaquestions/annex/16/AU688.pdf.
17()
Kochhar, Priyanka. The ‘State of Play’ of sustainable buildings in India. Paris : UNEP DTIE
Sustainable Consumption & Production Branch, 2010.
18()
See reference 7
19()
Bureau of Energy Efficiency and Alliance for an Energy Efficient Economy. Bureau of Energy Efficiency.
[Online] 30 August 2020. https://beeindia.gov.in/sites/default/files/State-Efficiency-Index-
2019%20%281%29.pdf.

14
Figure 3:Green building policy framework instituted by the Government of India; Source: Priyanka Kochhar

Various ministries including the Ministry of Power (including Energy Efficiency Services Limited (EESL)
and Bureau of Energy Efficiency (BEE)), the Ministry of New and Renewable Energy, the Ministry of
Housing and Urban Poverty Alleviation (including the Central Public Works Department (CPWD),
Bureau of Indian Standards (BIS)), and the Ministry of Environment, Forests and Climate Change
have played a crucial role in designing policies and incentives for projects to incorporate resource
efficiency through green building rating systems, in turn meeting India’s INDCs (Figure 3).

At the State and Municipal level (Table 2), 17 States and Union Territories (out of a total of 28 States
and 8 Union Territories (20) have incentivised (by providing financial incentives, additional ground
coverage, additional Floor Area Ratio (FAR)/Floor Space Index (FSI)/ Building Area Ratio(BAR)), or
issued direction for mandatory compliance with various green building rating systems to achieve
goals set at the national level, which facilitate and contribute to achieving the INDCs.

While Graham and Rawal (21) state that green building rating systems in India are not yet key to
achieving the emission reduction potential in India, they conclude by recommending that achieving
the potential through effective implementation would be important towards the national effort.
Smith & Pathak, 2018 have identified green building rating systems as effective tools to being about
urban transformation at the level of urban local bodies (ULBs) by implementing relevant
components of the Smart Cities Mission(22) and the Atal Mission for Rejuvenation and Urban
Transformation (AMRUT)(23).

20()
Government of India. States and Union Territories. Know India. [Online] https://knowindia.gov.in/states-
uts/.
21()
See reference 7
22()
Ministry of Urban Development, Government of India. Smart Cities Mission Statement & Guidelines. Smart
Cities Mission. [Online] May 2015.
http://164.100.161.224/upload/uploadfiles/files/SmartCityGuidelines(1).pdf.
23()
—. The Mission. AMRUT. [Online] June 2015. http://amrut.gov.in/content/innerpage/the-mission.php.

14
Smart City proposals that include green building rating systems (24) commit to resource efficiency for
the new and existing built environment, while ‘green building’ incentives in AMRUT facilitate
resource efficiency through ‘water and energy audits’ for existing infrastructure. States that have
incentivised green rating of building as part of their State Annual Action Plans (SAAPs), submitted to
the Government of India as part of AMRUT, have indicated timelines as part of implementation steps
as well(25).
Table 2: GRIHA linked incentives at State and Municipal levels to achieve national goals and international commitments;
Source: Compiled by Priyanka Kochhar from information available at (26) and other State/ Municipal body websites

24()
Urban Sustainability in India: Green Buildings, AMRUT Yojana, and Smart Cities. Smith, Russell M and
Pathak, Prasad. 2018, Springer Nature Singapore Pte Ltd., pp. 163-190.
25()
Ministry of Housing and Urban Affairs, Government of India. SAAP. Atal Mission for Rejuvination and Urban
Transformation. [Online] http://amrut.gov.in/upload/uploadfiles/files/Form%20SAAP(1).pdf.
26()
GRIHA India. GRIHA Incentives. GRIHA India. [Online] https://www.grihaindia.org/griha-incentive.

14
S.no State Year Type of incentive Municipal Body Notes
Urban local bodies shall provide following incentives to projects that follow “Andhra Pradesh Energy Conservation Building Code (APECBC) and
Municipal Administration and are GRIHA/IGBC/ LEED India rated buildings: (a)20% Reduction on permit fees. (b)Payment of impact fee and development charges to be paid
2017 Financial incentives
Urban Development Department in four equal instalments before the completion period of the construction as given in the building permit order. (c)If the property is sold within
three years, one-time reduction of 20% on duty on transfer of property.
1 Andhra Pradesh Industrial Development Policy 2015-2020 promotes adoption of sustainable green measures across industries. The State Government will
provide 25% subsidy of total fixed capital investment of the project (excluding cost of land, land development, preliminary and pre-operative
Industries and Commerce
2015 Financial incentives expenses and consultancy fees) for the industries that obtain GRIHA rating with a ceiling of INR 50 crore. 25% subsidy on total fixed capital
Department
investment of the project (excluding cost of land, land development, preliminary and preoperative expenses and consultancy fees) for buildings
which obtain green rating from GRIHA/LEED/IGBC. This incentive is applicable for MSME and large industries.
Delhi Development Authority to provide free of cost 1% to 5% extra ground coverage and FAR for GRIHA projects of more than 3000 sqm plot
Ground coverage and FAR
2 Delhi 2013 Delhi size. In case of non compliance of above after obtaining occupancy certificate, penalty at market rate to be levied for incentive FAR by land
incentive
owning agency.
3 Chandigarh 2015 Mandatory compliance Chandigarh Administration Chandigarh Administration has adopted CWPD guidelines for placing minimum three star GRIHA rating in all public building in future
TCP Board in its 163rd meeting held on Monday evening approved Green Building concept, which will come into force from January 1, 2019.
Department of Town & Country
4 Goa 2019 Mandatory compliance Government has decided to tie up with Indian Green Building Council (IGBC) and The Energy and Resources Institute (TERI) to set up guidelines.
Planning
Government buildings, commercial projects and hotels with built up area of more than 2000 sq metres will compulsory have to go green.
The Gujarat Comprehensive Development Control Regulations-2017 shall apply to the land development and building construction in the
Urban Development and Urban
2017 Additional FAR/ FSI incentive entire state. The Competent Authority shall offer some incentives in the rate of chargeable FSI for rating certified green buildings as 5%
Housing Department
discount in the total payable amount (the owner shall have to apply for GRIHA rating certification prior to commencement of the project).
Scheme for assistance to encouraging green practice and environmental audit to MSME. Industrial buildings of more than 2000 sqm built up
5 Gujarat 2015 Financial incentives Industry and Mines Department
area with green rating under GRIHA/IGBC/LEED can get up to 50% of consulting charges or 2.5 lacs, whichever is less.
Comprehensive Development Plan 2021 lists out the various regulations for procedure, planning and performance to regulate buildings. The
Ahmedabad Urban Development
2015 Additional FAR/ FSI incentive Competent Authority shall offer some incentives in the rate of chargeable FSI for rating certified Green buildings as 5% discount in the total
Authority
payable amount (the owner shall have to apply for GRIHA rating certification prior to commencement of the project).
Haryana Renewable Energy The city has issued G.O as regards to construction of Green buildings in compliance with approved National Rating Systems like GRIHA
2019 Mandatory compliance
Development Agency particularly in Government/PSUs buildings.
6 Haryana The Haryana Building code 2017 incentivizes GRIHA/IGBC/LEED rated projects. Buildings with 1star to 5 star GRIHA shall be eligible for 3%, 6%,
Department of Town and Country
2017 Additional FAR/ FSI incentive 9%, 12% and 15% additional FAR respectively, and buildings with Silver, Gold or Platinum by LEED/IGBC shall be eligible for 9%, 12% and 15%
Planning
additional FAR. The applicant has to pay only Infrastructure Development Charges on additional FAR granted as incentive.
Town and Country Planning
7 Himachal Pradesh 2017 Additional FAR/ FSI incentive Additional 10% FAR for projects which are granted Gold / Platinum rating by IGBC and Four Star/ Five Star by GRIHA Council.
Department
Urban Development and Housing Depending on the level of rating achieved, GRIHA/IGBC rated projects of all building uses (except plotted residential) shall be awarded
8 Jharkhand 2017 Additional FAR/ FSI incentive
Department additional FAR up to 7%.
GRIHA/ LEED mandatory for all government projects, and private projects (other than residential buildings with plinth area less than 500Sq.m)
9 Kerala 2011 Mandatory compliance Public Works Department
to go for GRIHA certification. Small residential buildings may get rated by SVA GRIHA or IGBC Green Homes.
2.5% to 7.5% rebate in development charges for developers with projects availing 3 Star, 4 Star, 5 Star GRIHA rating or Silver, Gold, Platinum
2018 Financial incentives Urban Development Department
LEED rating from GBCI. The consumers will be eligible for a property tax rebate between 5% to 10% for the same levels of green ratings.
Pune Municipal Corporation (PMC) and Pune Metropolitan Region Development Authority (PMRDA), Government of Maharashtra provide
2017 Additional FAR/ FSI incentive Urban Development Department additional FAR of 3%, 5% and 7% for Green Buildings rated as Silver, Gold and Platinum respectively by IGBC/GBCI, Three Star, Four Star, Five
Star by GRIHA Council, 30-30-30/40-40-40/50-50-50 by EDGE respectively.
LEED/GRIHA or any other (i.e. including EDGE) to be followed for all new and existing (requiring major repairs) government buildings
10 Maharashtra 2016 Mandatory compliance Public Works Department
constructed by PWD Maharashtra.
GRIHA/SVA GRIHA/IGBC rated project developers will get 5%,10%, 15% discount on the premium charges (payable to the corporation) as per
2015 Financial incentives Pune Municipal Corporation
3Star/ Silver, 4Star/ Gold, 5Star/ Platinum rating awarded by the GRIHA Council/IGBC.
Incentives launched under MNRE scheme on "energy efficient solar/green buildings". As per the scheme, depending on the level of GRIHA/ SVA
Pimpri Chinchwad Municipal
2011 Financial incentives GRIHA rating, the project developer to avail discount in Premium between 10% to 50%. Additionally, occupants to avail property tax (between
Corporation
5% to 10%) benefit based on the final rating.
LEED/GRIHA/IGBC have been incentivized as per applicable State Government policy
In pursuance of the National Sustainable Habitat Mission on Energy Efficiency in Building, the Authority shall encourage for adoption of
Bhuvneshwar Development Leadership in Energy and Environmental Design (LEED) / Green Rating for Integrated Habitat Assessment (GRIHA), Indian Green Building
11 Odisha 2018 Incentive as per State policy
Authority (BDA) Council (IGBC) and Energy Conservation Building Code (ECBC) (for Odisha ECBC Code and Guidelines -2011 refer Annexure-VI) rating
certification for new and existing buildings. The incentive for the same would be based on applicable State Government policy as applicable
from time to time.
2018 Mandatory compliance Department of Local Government Integration of GRIHA/ LEED/ IGBC within “Punjab Municipal Building Bye-Laws 2018". Incentives applicable as per notification issued in 2016
An additional 5% Floor Area Ratio (FAR) free of charge for projects which are rated Gold or above by IGBC/ Gold or Platinum by LEED/Four Star
2016 Additional FAR/ FSI incentive Department of Local Government
or above by GRIHA shall be eligible for 5% additional free of cost FAR incentive.
Wherever client department specifically requires, the building shall be planned and designed as a green building as per the standards of TERI-
2016 Mandatory compliance Public Works Department
12 Punjab GRIHA Rating or Indian Green Building Council Rating system and the additional cost shall be included in the estimates.
An additional 5% free of charge FAR shall be permissible to buildings with relevant certificates from GRIHA. In case the promoter fails to
Department of Housing and Urban submit maintenance certificate after a period of every five years from the Competent Authority, the defaulter can be penalized at the rate of
2013 Additional FAR/ FSI incentive
Development 200 percent
of additional floor area ratio permitted.
Projects achieving Platinum equivalent will be eligible for 15% free of cost extra BAR (Building Area Ratio), Gold equivalent for 10% free of cost
extra BAR, and Silver equivalent for 7.5% free of cost extra BAR. If green building norms are not met, and the above BAR is built, then a
2019 Additional FAR/ FSI incentive Urban Development Department
"betterment tax" will be applicable on the extra BAR. During approval, development tax will be deposited for the extra BAR, which will be
reimbursed on submission of IGBC/ GRIHA/ LEED rating documents.
13 Rajasthan Criteria for selection of partner in development of affordable housing projects in joint development agreement gives additional weightage to
developers who have completed/ ongoing projects with IGBC/ GRIHA. Additional FAR of 5% shall be provided in case of green building
2015 Additional FAR/ FSI incentive Department of Urban Development & Housing, Department of Local Self Government
construction as per the provision of prevailing building byelaws subject to obtaining certification from the authorised agencies such as IGBC,
LEEDS etc.
2014 Additional FAR/ FSI incentive Jaipur Development Authority Buildings with plot area more than 5000 sqm will be eligible for an additional 5% FAR free of charge if they get 4 or 5 star rating from GRIHA
All the Government and semi-Government structures in the State (Residential, Non-residential, Healthcare, Institutional, Industrial,
14 Sikkim 2015 Mandatory compliance Building and Housing Department Recreational etc) including those belonging to autonomous bodies like Boards, Corporation, Companies and Public Sector Undertaking (PSU)
shall conform to minimum 3 Stars GRIHA rating for propagating sustainable development in the State
Greater Noida Industrial
2016 Additional FAR/ FSI incentive Additional 5% FAR free of charge for projects which are rated as Gold or above by IGBC/LEED.
Development Authority
Uttar Pradesh Housing and Urban
2015 Additional FAR/ FSI incentive Free of cost additional 5% FAR for projects complying with 4 or 5 Star GRIHA rating
Planning Department
15 Uttar Pradesh Housing and Urban Planning Additional 5% FAR free of charge for projects which are rated as Gold or above by IGBC or LEED (new and existing buildings undergoing
2015 Additional FAR/ FSI incentive
Department retrofitting). Applicable to buildings on site more than 5000 sq. m.
Noida and Greater Noida have incentivized GRIHA/LEED projects on plots of minimum 5000 sqm with free cost 5% additional FAR (on existing
NOIDA and Greater NOIDA local
2011 Additional FAR/ FSI incentive FAR - so if the exiting FAR is 2.5% then its 5% of the 2.5% and not 5% total) for those complying with 4 or 5 Star GRIHA Rating/ Gold or
bodies, Uttar Pradesh
Platinum LEED Rating.
Mussoorie Dehradun Development Private buildings which comply to rating systems and which successfully secure ratings from GRIHA / LEED / IGBC / BEE shall be eligible to
2017 Additional FAR/ FSI incentive
Authority receive extra F.A.R free of cost in the range of 10%, 20% and 30% for Silver/ Gold/ Platinum LEED Rating or 3 Star/ 4 Star/ 5 Star GRIHA Rating.
16 Uttarakhand
All Government / State Government / Semi-Government buildings including those belonging to autonomous bodies like boards, corporations,
Mussoorie Dehradun Development
2017 Mandatory compliance public sector undertakings shall confirm to minimum 4-star GRIHA rating OR GOLD IGBC LEED to propagate green building construction. The
Authority
concerned Architect shall submit affidavit for the implementation of the above provision.
Department of Urban Development 10% additional Floor Area Ratio F.A.R. for "Green Building" as per provision LEED 'Gold' or higher level of LEED certification. Completion
2018 Additional FAR/ FSI incentive
& Municipal Affairs certificate for building linked to final certificate from GBCI
New Kolkata Development
17 West Bengal 2016 Additional FAR/ FSI incentive Additional 10% FAR for projects Precertified/ Provisionally Certified as Gold or above by IGBC/ Four Star or above by GRIHA.
Authority
10% additional FAR for green buildings which have been granted 4 star rating or higher under GRIHA rating system or Precertified/
2015 Additional FAR/ FSI incentive Department of Municipal Affairs
Provisionally Certified as Gold or above by IGBC.

As per the ‘city challenge’ reports submitted, 25 out of 100 cities have included green building
certification as a means to achieve select essential features, which requires “At least 80% buildings
(in redevelopment and green-field) ought to be energy efficient and green buildings” (27). 22 State
Annual Action Plans (SAAPs) submitted as a part of AMRUT attempt to “award incentives for green
buildings (e.g. rebate in property tax or charges connected to building permission/development

27()
See reference 22

14
charges)” (28). Additionally, 6 States including Andaman and Nicobar Islands, Andhra Pradesh,
Chattisgarh, Himachal Pradesh, Jharkhand and Uttar Pradesh have already issued directions to
incentivise green rated buildings, as reported in their respective SAAPs.

Use of green rating systems as implementation tools for AMRUT and Smart Cities Mission facilitates
a bottom up approach, and thereby enables greater transparency and efficiency between the states
and municipal bodies.

15 States and Union Territories including Andhra Pradesh, Chandigarh, Chattisgarh, Gujarat,
Haryana, Karnataka, Kerala, Maharashtra, Manipur, Delhi, Punjab, Telangana, Uttar Pradesh,
Uttaranchal and West Bengal have endorsed green building rating systems as part of their revised or
updated building byelaws (29).

GRIHA as an implementation tool for climate change adaptation and resilience measures

In addition to being a tool that addresses climate change mitigation through evaluation of
environmental performance of a building through its lifecycle, GRIHA rating addresses and alleviates
risks from the possibility of extreme heat, water scarcity, and flooding. GRIHA criteria embed climate
change adaptation measures through design, construction and operational phases of building
projects(30). Almost 50% of the points awarded in the GRIHA rating have potential to contribute
towards climate change adaptation and resilience, as described below:

Measures for adaptation to extreme heat

 Low impact design: Natural ventilation/ low-energy cooling systems.


 Design to mitigate urban heat island intensity: Surfaces are soft paved/ covered with high solar
reflective coating, shaded by trees, pergolas, and/or solar panels.
 Preservation and protection of landscape (native/naturalised tree planting ) during construction.
 Energy efficiency: Minimize overall heat gain and reduce energy demand for cooling.

Measures for adaptation to flooding

 Storm water management: 100% post-construction stormwater runoff management on site and
scheme to deliver harvested rainwater to users.

Measures for adaptation to water scarcity

 Efficient use of water during construction: Use of treated wastewater/captured rainwater in


construction activities; strategies to reduce use of water.
 Optimisation of building and landscape water demand: Installation of water efficient systems
such as low flush toilets; use of regionally appropriate, xerophyte plant species and efficient
landscape irrigation systems.
 Water reuse: Tertiary-level wastewater treatment for 100% of sewage generated on site;
artificial groundwater recharge and rainwater storage; maximum utilization of treated and
harvested water within the site to reduce the complete dependence on fresh water supply.

Measures to enable behaviour change by increased awareness levels

28()
See reference 25
29()
Town and Country Planning Organisation. Online RTI Status Form. RTI Online. [Online] 4 September 2020.
https://rtionline.gov.in/request/status.php.
30()
GRIHA Council. Adaptation and climate resilience features in the GRIHA rating. New Delhi, Delhi, India : s.n.,
11 September 2020.

14
 Create environmental awareness amongst the building occupants and invitees.

Other measures

 Site plan must conform to the development master plan, provisions of eco sensitive, coastal and
heritage zones, away from water bodies, and meeting “various hazard prone area regulations”.
 Strategies, independent of other criteria that make the project more sustainable.
 Quality of water available for use during the operational phase of the building meets national
standards.

Transforming financial transactions to facilitate green buildings

The green building rating systems have been instrumental in embedding and executing resource
efficiency in the building sector through transforming mechanisms for financial transactions. The
National Housing Bank (NHB), SIDBI and IIFL Home Loans have promoted the concept of green
residential buildings (i.e. rated through GRIHA, IGBC, LEED, EDGE) through various financial
structures and technical support programmes for developers, primary lending institutions (PLIs) and
home buyers. These initiatives are linked to green building rating systems so as to ensure effective
implementation on ground (31), (32). Though these programmes, namely the ‘Promotional Programme
for Energy Efficient New Residential Housing in India’ (33) financial incentives by SIDBI(34), (35), (36),
incentives by National Housing Bank and Agency Françoise de development (AFD) through SUNREF
India (37), and launch of 'Kutumb' platform for green affordable housing by IIFL Home Loans (38), the
financial institutions (FIs) have embedded implementation of energy efficiency measures with
various finance transaction mechanisms for specific stakeholder groups. The work done by the FIs
over the past two decades further lays the foundation for green climate fund instruments and green
bonds to benefit the PLIs and end users in future where not just individual components such as solar
water heaters and efficient equipment/ products get financed but real estate as a sector would
benefit by incorporating green building features in their design. (39)

Strengthening awareness, knowledge and skill

The green building certification agencies have further played a crucial role in equipping professionals
with knowledge and skills required for design, construction and operation of certified green
31()
Soni, Alankrita. Role of Financial Institutions in promoting green buildings. [interv.] Priyanka Kochhar. 20
March 2020.
32()
Kool, Amor. IIFL Kutumb initiative. [interv.] Priyanka Kochhar. 19 August 2020.
33()
National Housing Bank. Report on Trend and Progress of Housing in India 2014. National Housing Bank
website. [Online] 2014. https://www.nhb.org.in/Publications/T&P_English_FINAL.pdf.
34()
A Review on Green Building Movement in India. Manna, Dibas and Banerjee, Sulagno. 2019, International
Journal of Scientific and Technology Research, pp. 1980-1986.
35()
Economic Policy Forum. Promoting sustainable and inclusive growth in emerging economies: Green
Buildings. Economic Policy Forum. [Online] 2016.
https://economic-policy-forum.org/wp-content/uploads/2016/02/Sustainable-and-Inclusive-Growth-Green-
Buildings.pdf.
36()
Yes Bank TERI BCSD. YES BANK – TERI BCSD Survey of Green Real Estate Sector 2014. Yes Bank.
[Online] 2014. https://www.yesbank.in/pdf/researchandinitiatives_awardsandrecognition_pdf3.
37()
Bank, Sunref India-National Housing. Sunref India affordable green housing : GRIHA incentive. GrihaIndia.
[Online] https://www.grihaindia.org/sites/default/files/pdf/Griha-incentives/sunref-general.pdf.
38()
Loan, IIFL Home. Kutumb – Green Affordable Housing. IIFL Home Loan. [Online] 2019.
https://www.iifl.com/kutumb/.

39()
See reference 32

14
buildings (40), (41), (42). By conducting nation-wide training programmes and workshops, and developing
a cadre of professionals equipped with green building credentials (including GRIHA Certified
Professionals, GRIHA Evaluators (43), LEED Green Associate, LEED AP with specialty, LEED Fellows (44),
Indian Green Building Council Accredited Professional (45), EDGE Experts and Auditors (46), and GEM
Certified Professional (47) the certification agencies provide for inclusion of qualified professionals as
part of various project tender requirements. For example, the Request for Proposal for
“Comprehensive Consultancy Services for North Zone Office Building Design” (48), requires that “The
bidder should having at least one of the team members as GRIHA/ LEED Accredited Professional” (49).
Similarly, the Expression of Interest for “Empanelment of Consultants for Comprehensive
Engineering Services” requires “The consultants shall have at least one LEED AP or IGBC AP or GRIHA
Trainer or GRIHA Evaluator in their team.” (50)

In the notification issued for ‘integration of environmental condition in building bye-laws’ (51),
MoEFCC has notified empanelment of Qualified Building Environment Auditors (QBEAs) for the
purpose of certification regarding incorporation of environmental conditions in buildings, where
Indian Green Building Council has been identified as one of the agencies for the “process of
accreditation, training, and renewal”(52) of QBEAs.

In addition to skill development amongst students through design competitions such as the GRIHA
Trophy at NASA(53) the green building rating systems have been integrated into the formal curriculum
of architectural schools across the country (54) to ensure students are equipped with theoretical and
practical knowledge about green building concepts to make meaningful contribution as
professionals.
40()
See reference 16
41()
Ministry of New and Renewable Energy, Government of India. Ministry of New and Renewable Energy,
Government of India. Annual Report. [Online] 31 March 2020.
https://mnre.gov.in/img/documents/uploads/0ce0bba7b9f24b32aed4d89265d6b067.pdf.
42()
Lok Sabha Secretariat. LSS Committee Energy. Standing Committee on Energ (2017-18). [Online] March
2018. http://164.100.60.131/lsscommittee/Energy/16_Energy_32.pdf.
43()
GRIHA India. The GRIHA Community. GRIHA India. [Online] https://www.grihaindia.org/griha-community.
44()
U.S.Green Building Council. LEED professional credentials. U.S.Green Building Council. [Online]
https://www.usgbc.org/credentials.
45()
Indian Green Building Council. IGBC Accredited Professional Examination. Indian Green Building Council.
[Online] https://igbc.in/igbc/redirectHtml.htm?redVal=showIgbcApnosign.
46()
Green Business Certification Inc. EDGE Experts & Auditors. Excellence in Design for Greater
Efficiencies. [Online] https://edge.gbci.org/auditors.
47()
The Associated Chambers of Commerce and Industry of India. GEM CP. Green Assocham. [Online]
https://www.green-assocham.com/cms.php?id=19&menu_id=26&title=gem-cp.
48()
Bhubaneswar Municipal Corporation. Request for Proposal (RFP) for Comprehensive Consultancy
Services for North Zone Office Building Design. Bhubaneswar Municipal Corporation. [Online] 8
December 2017. http://portal2.bmc.gov.in/Files/Keyprojects_22122017122721PM.pdf.
49()
See reference 48
50()
HITES. HLL Infra Tech Services Limited ‘HITES’. HITES (A Fully Owned Subsidiary of HLL Lifecare Limited, a
Government of India Undertaking). [Online] May 2017. http://hllhites.com/uploads/tenders/_882113102.pdf.
51()
Ministry of Environment Forests and Climate Change. Notification on Integration of Environmental
Conditions in Building and Construction Sector. Ministry of Environment Forests and Climate Change. [Online] 9
December 2016. http://moef.gov.in/wp-content/uploads/2017/07/Building-and-Construction.pdf.
52()
See reference 51
53()
National Association of Students of Architecture. Trophies. National Association of Students of Architecture.
[Online] 2013. https://nasaindia.co/trophy/griha#collapse-two-link1_11_one1.
54()
Council of Architecture. Architectural Education. Council of Architecture. [Online] 11 August 2020.
https://www.coa.gov.in/showfile.php?lang=1&level=1&sublinkid=748&lid=599.

14
Implementation of LEED Lab as part of the Bachelor’s degree in Architecture (B.Arch) curriculum at a
prominent Central University of India enables students to assess the performance of an existing
building facility, with the goal of certifying the building with LEED for Building Operations and
Maintenance (LEED O+M) process themselves. (55)

3. Methods
This section describes the research approach used to collate and analyse information to provide
recommendations for States and municipal bodies to adopt and incentivise green building rating
systems at the local level.

3.1 Data collection

Extensive literature review for in depth understanding of linkages between climate change, building
sector and India’s INDCs conducted. All 100 Smart City proposals reviewed to evaluate if cities have
included green building rating systems as a tool to achieve essential features (i.e. at least 80%
buildings in redevelopment and green-field should be energy efficient and green buildings) in area
development plans (56). The latest State Annual Action Plans (SAAPs) reviewed to evaluate if
proposed/completed reforms for conducting energy and water audits include incentives for green
buildings (e.g. rebate in property tax or charges connected to building permission/development
charges).(57) Information on green building incentives which is available online and through
notifications, studied in detail.

Structured questionnaires developed for collecting data to fill information gaps. A Right to
Information (RTI) query filed with the Town and Country Planning Department, Government of India
to collect information on which States have integrated green rating systems in their building bye
laws. Structured interviews conducted to identify challenges being faced by stakeholders awarding
and availing incentives in States and municipal corporations with the highest number of policies and
projects registered/ green rated.

3.2 Data analysis

Based on the above data collection, and interaction with certification agencies and municipal bodies,
projects that have availed green building incentives have been identified and documented to enable
replication of good practices for other municipal bodies to adopt.

4. Results
In light of the extensive literature review, it may be inferred that robust implementation of existing
green building policies and formulation of new interventions in the building sector at the national,
state and municipal levels, will continue to play an important role in achieving India’s INDCs. (58)

Furthermore, incentives for green rated projects provide an institutional framework at the State and
municipal levels to implement policies, including the CSCAF developed for 100 Smart Cities, and
enable cities to achieve the objective of being ‘Climate Smart’.

55()
Jamia Millia Islamia. Press Releases. Jamia Millia Islamia A Central University. [Online] 6 August
2019. https://www.jmi.ac.in/upload/publication/pr2_English_2019August6pdf.pdf.
56()
See reference 22
57()
See reference 25
58()
Mainstreaming climate change adaptation in Indian cities. Sharma, Divya and Tomar, Sanjay. 2010,
Environment and Urbanization, pp. 451-465.

14
Uttar Pradesh (with 9 policies), followed by Gujarat (with 7 policies), Maharashtra and Punjab (with 6
policies each), and Andhra Pradesh and West Bengal (with 5 policies each) are States (Table 3) that
utilise green building rating systems, especially GRIHA to implement climate change mitigation,
adaptation and resilience policies.(59)
Table 3: Green building rated projects driving policy implementation at State and Municipal levels; Source: Priyanka
Kochhar
Provision for green Endorsement of green
Incentives/mandate building incentives in Green rating in rating in byelaws/ other
S.no. States and Union Territories for green rating AMRUT SAAPs Smart City proposals documents Total
1 Andaman and Nicobar Islands 1 1 2
2 Andhra Pradesh 2 1 1 1 5
3 Arunachal Pradesh 1 1 1 3
4 Assam 1 1
5 Bihar 1 1 2
6 Chandigarh 1 1 1 3
7 Chhattisgarh 1 2 1 4
8 Dadra and Nagar Haveli and Daman and Diu 1 1 2
9 Delhi 1 1 1 3
10 Goa 1 1
11 Gujarat 3 1 2 1 7
12 Haryana 1 1 1 3
13 Himachal Pradesh 1 1 1 3
14 Jammu and Kashmir 1 1 2
15 Jharkhand 1 1 1 3
16 Karnataka 1 1 2
17 Kerala 1 1 1 3
18 Ladakh
19 Lakshadweep 1 1
20 Madhya Pradesh 2 2
21 Maharashtra 3 1 2 6
22 Manipur 1 1
23 Meghalaya 1 1
24 Mizoram 1 1
25 Nagaland 1 1 2
26 Odisha 1 1
27 Puducherry
28 Punjab 3 1 1 1 6
29 Rajasthan 3 1 4
30 Sikkim 1 1 2
31 Tamil Nadu 1 2 3
32 Telangana 1 1 2
33 Tripura 1 1 1 3
34 Uttar Pradesh 4 1 3 1 9
35 Uttarakhand 2 1 1 4
36 West Bengal 3 1 1 5

NOIDA in Uttar Pradesh with over 100 green buildings (60), Pimpri Chinchwad Municipal Corporation
(PCMC) with over 60 GRIHA projects (61) and the State of Haryana with over 30 green buildings (62) are
eligible to receive the green rating linked additional FAR incentive. GRIHA (63) drives compliance with
relevant policies in Haryana (i.e. 12% of total GRIHA projects), Uttar Pradesh (7% of GRIHA projects)
and Maharashtra (40% of total GRIHA projects). Subsequently, the State of Haryana, NOIDA in Uttar
Pradesh and PCMC in Maharashtra have been identified as further case studies to understand the
institutional mechanisms in place.

59()
See reference 30
60()
Goyal, Mukesh. How many projects have availed the green building incentive in Noida. [interv.] Priyanka
Kochhar. 1 September 2020.
61()
Karmarkar, Ketki. How many projects in PCMC have availed the GRIHA incentive. [interv.] Priyanka Kochhar.
1 September 2020.
62()
Singh, Hitender. How many projects have availed the green building rating linked incentive in Haryana.
[interv.] Priyanka Kochhar. 1 September 2020.
63()
See reference 30

14
Select GRIHA projects in the above mentioned regions were identified for supporting information on
the implementation mechanisms. Developers, including Goel Ganga Developers and Sanjeevani
Developers in Pune, and the DAH group in NOIDA were interviewed to gain information on the role
of incentives in offsetting any additional costs incurred by the developers in design and construction
of green buildings. Occupants of GRIHA rated Ganga Skies project were interviewed to understand
the impact of property tax rebates, while living in a green building.

4.1 Green building rating linked financial incentives by Municipal Corporation

GRIHA linked incentives by Pimpri Chinchwad Municipal Corporation (PCMC)

In 2011, PCMC launched GRIHA linked Points scored Rating Discount in Premium Discount in Property tax
GRIHA SVAGRIHA
incentives under a scheme on "energy For the first
51-60 * 10% - 5%
efficient solar/green buildings" by the 25 GRIHA
61-70 ** 20% projects - 8%
Ministry of New and Renewable
71-80 *** 30% 5% 10%
Energy. (64) As per the incentive scheme 81-90 **** 40% 8% 12%
(Table 4), and depending on the level 91-100 ***** 50% 10% 15%

of GRIHA/ SVA GRIHA rating, the Table 4: Discount in Premium and Property Tax rebate for
project developer is eligible to avail GRIHA projects in PCMC; Source (50)
10% to 50% discount in Premium,
and occupants are eligible to avail
property tax (between 5% to 10%) benefit based on the final rating (65). Furthermore, and as per
office memorandum by the Ministry of Environment and Forests, Government of India (66) a GRIHA
pre certified project would be eligible for “out of turn priority attention by the Expert Appraisal
Committee (EAC)/ State Level Expert Appraisal Committee (SLEAC)” (67).

Operationalisation of GRIHA rating linked priority consideration by EAC/ SLEAC

 Register the project at www.grihaindia.org


 Submit a proposed development plan for the registered project with recent date stamped
site photographs
 GRIHA Council to review feasibility
 Successful payment of registration fees to access the GRIHA Online Panel
 Project team to upload compliance documents through the online panel
 Submitted documents evaluated by GRIHA Council
 GRIHA Council to revert with comments on the submitted documents within two weeks
 Revised documents to be submitted by the clients within two weeks of receiving comments
 Documents evaluated by pre-certification committee
 In case of compliance, pre-certification is awarded along with detailed compliance report
 In case of non-compliance, a report with necessary corrective actions is shared

64()
See reference 42
65()
Pimpri Chinchwad Municipal Corporation. Green Building Initiative. Pimpri Chinchwad Municipal
Corporation. [Online] 20 1 2011. https://www.pcmcindia.gov.in/green_bld_griha_incentive.php.
66()
The Inception and Evolution of EIA and Environmental Clearance Process – Laying Emphasis on Sustainable
Development and Construction. Tathagat, Devarshi and Dod, Ramesh D. 2015, Int. Journal of Engineering
Research and Applications , pp. 22-28.
67()
Ministry of Environment and Forests, Government of India. Ministry of Environment and Forests,
Government of India. GRIHA India. [Online] 7 June 2011.
https://www.grihaindia.org/sites/default/files/pdf/Griha-incentives/green-rating.pdf.

14
 GRIHA registration of project is mandatory after precertification
 GRIHA rating to be pursued as per GRIHA Council procedure

Operationalisation of GRIHA rating linked incentives at PCMC for project developers

Process to avail GRIHA incentives in PCMC (68) is appended below:

 Register project at www.grihaindia.org


 Payment of registration fee and access to GRIHA Online Panel
 One-day GRIHA workshop for project team by GRIHA Council
 First due diligence site visit conducted by GRIHA Council (when project construction is at
plinth level) and report (with feedback) uploaded online for project team
 Compliance report submitted by project team within 15 days
 Second due diligence site visit conducted by GRIHA Council at completion of superstructure
and second report uploaded online for project team.
 Compliance report submitted by project team within 15 days
 Project team to upload GRIHA documentation for all criteria
 Primary evaluation by GRIHA Council on completeness of the documentation
 Third and final due diligence site visit conducted by GRIHA Council
 GRIHA evaluation committee reviews GRIHA documentation for award of provisional points
 Project evaluation report uploaded online. Project team may submit additional documents
within 30 days
 GRIHA provisional rating and certificate issued by GRIHA Council
 Post occupancy audit conducted by BEE certified auditor
 Award of final GRIHA rating after building is fully commissioned and is operational for at
least 12 months
 Developer to submit GRIHA rating certificate to PCMC for release of rebate on Premium.
Environment Cell of PCMC notifies tax department to issue applicable rebate in Premium.
 Tax department to release rebate on property tax for occupants of the property for three
consecutive years; after which the building to be re-audited for energy, water, and waste
(report to be prepared by BEE-certified energy auditor), every three years to avail the
property tax benefit.

Impact of incentives on PCMC

Based on information from PCMC (69), about 60 projects registered up to 2019 are eligible to avail the
incentives. It had been inferred (70) that on an annual basis, if the PCMC revenue from Premium is Rs.
100 crores (71), then the revenue invested for 3-Star GRIHA projects by way of rebates would be
approximately Rs. 4 crores. In turn, there is likely to be 35% reduction in quantity of potable water
required, 35% reduction in amount of waste water generated and 15% of treated waste water is
likely to be used for various applications in new buildings, thereby reducing the pressure of providing
services and maintaining infrastructure.

In case of property tax rebate for typical case (72), where the end user pays an annual base tax of Rs.
6000/- for a flat of 1000sq ft., a rebate of Rs. 600/- per annum would be available for 3 Star GRIHA
68()
GRIHA Council. Operationalisation of GRIHA with Pimpri Chinchwad Municipal Corporation (PCMC). Pune :
GRIHA Council, 2011.
69()
See reference 61
70()
See reference 68
71()
73.42 Indian Rupee= 1USD (as on 14 Sep 2020)
72()
See reference 68

14
project. Similarly, for a property of 50,000 sq.ft (about 50 flats), a tax rebate of Rs.30,000/year and
for a property of 4, 00,000 sq.ft, (about 400 flats) a tax rebate of Rs.2,40,000/year would be
applicable. In turn, the project would benefit by way of rain water harvesting, solid waste
management and availability of solar thermal systems on site.

Case study 1: 3-Star Ganga Skies residential project, Pimpri Chinchwad

The 3 Star GRIHA rated residential project (56,000 sq m built up area) availed 30% rebate in
Premium. The occupants were entitled a 5% rebate in property tax. In addition, the project could
achieve 8% reduction in the capital cost by integrating green building principles at the right stages of
the design, planning and implementation. (73)

Photograph 1: Ganga Skies project, Pimpri Chinchwad, Maharashtra; Source:14

The environmental benefits accrued by the project as part of GRIHA rating (74) are listed below:

 30% reduction in energy consumption compared to GRIHA benchmark.


 25% reduction in building water consumption
 40% reduction in landscape water consumption
 More than 50% of the living areas are day-lit
 More than 40% fly-ash used in the block work
 10kW renewable energy generated on site

Case study 2: 3 Star Devrai Phase II residential project, Kiwale, Pune

The 3 Star GRIHA rated residential project of 3,100 sqm built up area (75) availed 30% rebate in
premium. The occupants were entitled a 5% rebate in property tax, resulting in annual savings. (76), (77)
73()
Mahal, Namrata. Formulating guidelines for effective implementation of Green Building Scheme of the
Urban Local Bodies. Pune : Rachana Sansad Project Management Institute, 2016.

74()
See reference 14
75()
VK:e environmental . Complete, GRIHA, Projects, Pune, Residential. Devrai, Phase II. [Online] September
2019. http://vke-environmental.com/newsite2019/projects/location/pune/devrai-phase-ii/.
76()
GRIHA Council. Incentive release approval for GRIHA rated project by PCMC. News & Updates. [Online]
September 2019. https://www.grihaindia.org/incentive-release.
77()
NRI News. GRIHA Council organised "Paryavaran Rakshak" programme for occupants of Devraai Phase-II,
Pune. NRI News. [Online] 21 September 2019. https://nrinews24x7.com/griha-council-organised-paryavaran-

14
Photograph 2: Devrai project, Kiwale, Maharashtra;
Source: (78)

The environmental benefits accrued by the project as part of GRIHA rating are listed below 78:

 85% estimated reduction in energy consumption compared to GRIHA benchmark.


 76% of water savings in landscape usage due to installation of drip irrigation.
 More than 90% of interior day lit spaces.
 Solar hot water system to suffice 96% hot water requirement, thus reducing the
consumption of energy generated from non-renewable sources.
 3kWp solar photovoltaics installed for common area lighting.
 29% reduction in embodied energy in structural application

4.2 Green building rating linked additional FAR incentive by Development Authority

Green building rating linked incentives by NOIDA (New Okhla Industrial Development Authority)

In 2010, as part of the General Provisions for building projects, NOIDA included additional free FAR
for LEED certified projects constructed on plot size of more than 5000 sqm. (79), (80) Subsequent
amendments in 2012, and 2019 went on to include incentives for projects certified by GRIHA and
IGBC as well.

As per the incentive scheme, NOIDA awards free cost 5% additional FAR (on existing FAR - so if the
exiting FAR is 2.5% then its 5% of the 2.5% and not 5% total) for those complying with 4 or 5 Star
GRIHA Rating/ Gold or Platinum LEED/IGBC Rating.

Operationalisation of green building rating linked incentives at NOIDA for project developers

Process to avail green building linked incentives in NOIDA (81), (82) is appended below:

 Applicant submits LEED/ GRIHA/ IGBC precertification to seek 5% additional free of cost FAR
for green building, to Town Planning Department of NOIDA.

rakshak-programme-for-occupants-of-devraai-phase-ii-pune/.
78()
See reference 75
79()
GRIHA Council. NOIDA and Greater NOIDA embrace GRIHA. GRIHA incentives. [Online] 20 October 2012.
https://www.grihaindia.org/noida-and-greater-noida.
80()
See reference 60
81()
See reference 79
82()
See reference 60

14
 At the time of seeking completion certificate, the applicant to provide final LEED/ GRIHA/
IGBC rating certificate to NOIDA.
 The applicant to submit a rating certificate and a certificate of compliance every five years.
In case the client fails to do so, the Authority after one month's notice may charge the
compounding fees of the FAR given free of cost at the rate of 200% of the cost of
purchasable FAR.

Case study 1: GRIHA 4 Star NX-One project, Greater NOIDA

The GRIHA pre- certified


mixed use project of
approximately 3,38,402.6 sq
m built up area (83) and cost
of Rs. 800 crores (84) availed
5% additional free of cost
FAR of 11,745 sq m. The cost
of free of cost additional FAR
(85)
provided to the project
(calculated as per the
compounding fee letter of
NOIDA (86), using rate of
purchasing commercial/
residential FAR) is
approximately Rs. 76.8 Photograph 3: GRIHA 4 Star pre certified NX-One, Greater Noida, Uttar
Pradesh; Source: (58)
crores to the developer. The
projected incremental cost
(since the project is still under construction) incurred to meet requirements of GRIHA 4 Star
(including SRI tiles, fly ash bricks, double glazing, roof insulation, BEE rated ceiling fans, solar PV
power plant and automation for HVAC) are approximately Rs. 69.45 crores (87). Thus, the additional
cost incurred by the project is absorbed by the value of free FAR incentive for GRIHA projects
provided by Greater NOIDA.

Impact of incentives on NOIDA

Based on information from NOIDA (88), over 100 projects (i.e. approximately 80% of total eligible
projects (i.e. on plot size of more than 5000 sqm) that apply for building permission) have registered
between 2010-2020 with LEED/ GRIHA/ IGBC to avail the additional free of cost FAR incentive
awarded based on bye law provisions by the Authority. This initiative has encouraged private
developers to adopt green building practices, with not much impact on revenues of NOIDA. A large
number of group housing projects have applied for the incentive, but since the construction of about
90% projects is partly complete, the final sanction is awaited.

4.3 Green building rating linked additional FAR incentive by a State


83()
Sadarangani, K Shankar. NX-One, Noida. [interv.] Priyanka Kochhar. New Delhi, 12 September 2020.
84()
Uttar Pradesh Real Estate Regulatory Authority. View Projects. Uttar Pradesh Real Estate Regulatory
Authority. [Online] 14 September 2020. https://www.up-rera.in/viewprojects.
85()
See reference 60
86()
As per discussion with NOIDA Authority officials (See reference 60), compounding fee for projects in Greater
NOIDA is same as compounding fee for projects in NOIDA.
87()
See reference 83
88()
See reference 60

14
Green building rating linked incentives by State of Haryana

With an objective to synchronise provisions of Building Rules across the State, the Government of
Haryana issued the Haryana Building Code, 2017 (89), which incorporates (90) requirements of the
Model Building Byelaws. (91)

The Haryana Building Code, 2017, provides for green building measures and incentives (for new
buildings) where projects certified as green buildings are eligible for additional FAR incentives (Table
5). Furthermore, “In case the building is certified from GRIHA, there is no requirement for issue
environmental clearance.” (92) The applicant only has to pay the Infrastructure Development Charges
on additional FAR granted as incentive under Code 6.5 i.e. Green building measures and incentives,
and not the fee for availing extra FAR. (93)

Table 5: Details of green building rating and Additional Floor Area Ratio (FAR); Source: (61)

Additional FAR for all building uses (except plotted residential) 3%  6%  9% 12% 15%
GRIHA rating 1 star  2 stars  3 stars  4 stars 5 stars
IGBC/LEED rating  - - Silver Gold Platinum

Operationalisation of green building rating linked incentives in Haryana


Process to avail green building rating incentives in Haryana (94), (95) is appended below:
1. Applicant to submit provisional certificate from GRIHA or precertification from IGBC/ LEED at
the time of seeking approval of building plan, to the Competent Authority.
2. Applicant to submit final rating certificate from GRIHA/ IGBC/ LEED at the time of applying
for the Occupation Certificate of building.
3. Competent Authority verifies final level of rating achieved with the provisional/
precertification rating and issues Occupation Certificate, and approves claim of additional
FAR if final rating is same/ higher than the provisional rating.
4. In case the final rating achieved is lesser than the provisional rating, occupation certificate is
issued after compounding the additional FAR (i.e. difference of additional FAR from
provisional rating and final rating) acquired by the applicant, at ten times the rates of
External Development Charges (EDC) (96) applicable at the time of submission of occupation
certificate application.
5. The applicant to submit a rating certificate for the building from GRIHA/IGBC/LEED every 5
years. In case of non-compliance, the authority, after giving one month's notice may charge
compounding fee or may take appropriate action on case to case basis.

89()
Haryana Government . The Haryana Building Code 2017. Town and Country Planning Department, Haryana.
[Online] 30 June 2016. https://tcpharyana.gov.in/Policy/The%20Haryana%20Building%20Code-2017-
Amendment-08.05.2018-Chapter-1-6-7.pdf.
90()
See reference 29
91()
Ministry of Urban Development, Government of India. Model Building Bye Laws. Ministry of Urban
Development, Government of India. [Online] 2016. http://mohua.gov.in/upload/uploadfiles/files/MBBL.pdf.
92()
See reference 89
93()
Singh, Hitender. How to avail green building incentives in Haryana. [interv.] Priyanka Kochhar. 1 September
2020.
94()
See reference 89
95()
See reference 93
96()
TCP Haryana. Tentative EDC rate for different uses in various Urban Estates of Haryana calculated as per
decision taken by the Council of Ministers in its meeting held on 03.02.2016. TCP Haryana. [Online] 3 February
2016. https://tcpharyana.gov.in/Policy/Final%20EDC%20Rates%20Potential%20Zone%20Wise%20by
%20Cabinet%20Sub%20Committee.pdf.

14
5. Discussion and recommendations
States (especially where Smart City Mission schemes and AMRUT schemes are being actively
implemented) are able to ensure resource efficiency through green building rating systems (Table 2).
For example, Uttar Pradesh, Haryana and Maharashtra.

Green building certification agencies are equipped to support local bodies for data capture,
management and public availability of data. Availability of updated and correct data on sustainability
performance at a local level has traditionally been a challenge, which has been addressed in the case
of PCMC to some extent. Building a robust system for demand side resource consumption data
collection and analysis at local and State level will contribute significantly towards collating
information for India’s INDCs.

Use of existing green building rating tools enable effective implementation of resource efficiency
policies at the building and municipal levels, enable municipal bodies to measure and monitor
progress, and provide a feedback mechanism for modifications required (if any) in the rating
systems.

It is crucial for project proponents and municipal bodies to understand the cost impact of green
rated buildings over the life cycle of the project to design appropriate mechanisms for incentives.
Further study on building performance and cost analysis of GRIHA rated projects is required. The
study will also enable design of suitable incentives at State or municipal levels.

Recommendations for States and municipal bodies to institutionalise GRIHA rating and incentivise
projects are as follows:

1. Adoption of green building rating systems


 Develop relevant schemes including GRIHA rating. The schemes to clearly highlight the
priorities and intentions by ensuring it is embedded in an existing framework or issued via an
official government order.
 Adopt the Smart Cities Programme in its entirety, and incorporate criteria that “at least 80%
buildings (in redevelopment and greenfield) should be energy efficient and green buildings”.
States and Municipalities (especially where Smart City Mission schemes and AMRUT
schemes are being actively implemented) to ensure resource efficiency through adoption of
GRIHA rating.
 Mandate adoption of GRIHA for government projects. PWD Maharashtra has not only
instructed all new buildings to be compliant with the GRIHA rating system but has also
upgraded 300 buildings in the State in 2019, as per GRIHA Existing Building rating system.

2. Incentives and financial support


 Financial or other incentives for developers and occupants to be structured with an objective
to provide proportionate compensation for green building linked additional cost incurred by
the project. The incentive packages to be targeted, consistent and coordinated at all levels.
 Set up a timeframe and mechanism to convert policy incentives into mandatory regulations.
 Support initial investments for green building schemes, providing innovative financing
instruments to projects. For example, increased investment funds may be made available for
green building developers at lowered interest rates from allied banks and other financial
institutions.

3. Ease of processing incentives and benefits


 Disseminate information in print and electronic media to enhance outreach. Ensure all
information is made available through the official website that is updated regularly. Notices

14
should be displayed as a part of the main webpage and on bulletin boards within the office.
An internal mechanism for systematic maintenance of the website may be set up.
 The incentive model to clearly mention the project cycle, stage(s) at which the linked
incentives shall be released. The timelines, penalty clauses to be mentioned for timely
release of incentives to be ensured.
 Set up a dedicated Environment Cell and Review Committee comprising experts and/or a
GRIHA official with clearly stated responsibilities. This network of experts may act as a single
point contact for all green building related queries and provide liaison between various
departments for release of incentives. 

4. Awareness generation amongst all stakeholders


 Create awareness about the prolonged and long-term benefits of green construction by
developing resource material for the same.
 Invest in capacity building programmes for the public as well as the training of staff
responsible for implementation of green building schemes. Ensure its inclusion in the annual
budget and timeframe. 
 Maintain clarity and transparency in the incentives offered and processes followed to ensure
more uptake by the citizens.
 Conduct annual events and award local achievements in the green building field.
 Simultaneous efforts should be made in building markets for energy and resource efficient
technologies, skills and building materials.

6. Conclusion
The research paper has examined select institutional mechanisms for incentivising green rated
projects. It has studied project level implementation mechanisms to propose recommendations that
may be adopted by various municipal bodies. Currently, only 25/100 smart city proposals include
green building rating systems to achieve essential goals of Smart City Mission. Based on feedback
from certification agencies, project proponents, and government officials, there is lack of
information on institutional mechanism for municipal bodies to integrate green rating systems
within their existing framework. Green building rating systems shall ensure effective implementation
of resource efficiency on ground and support upcoming Smart Cities to requirements of the
ClimateSMART Cities Assessment Framework (CSCAF).

Implementation of the proposed recommendations provide a huge opportunity for the municipal
bodies to strengthen their initiatives in the green building domain, and report climate change
mitigation, adaptation and resilience measures to CSCAF using parameters of GRIHA rating.

The CSCAF that incorporates green building rating systems (including GRIHA) to assess performance
of municipal bodies will also benefit, and be able to report achievements of municipal bodies at
national and international levels only when the data is collated at the local level. Setting up eco-cells
with support from the GRIHA Council will be able to facilitate data collection and reporting, thereby
establishing the vertical connect while ensuring implementation on ground.

Development Authorities that are currently not eligible under the Smart City Mission, but are taking
initiatives on green buildings are encouraged to express their interest in being included in the Smart
City Mission. Similarly, identified Smart Cities that have adopted several green building measures are
also encouraged to report the same for effective and transparent implementation of national
policies and commitment to climate change mitigation, adaptation and resilience.

Further study on building performance and cost analyses of GRIHA rated projects is required to
facilitate appropriate design of incentives as per local institutional mechanisms.

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