Government Incentives for Green Building Projects

The buildings sector is considered as both a climate culprit and a climate solver. Buildings accounted for almost 30% of final energy use and 28% of energy-related CO2 emissions globally. Efficient buildings can also help improve the quality of life of millions of people with greater comfort and improved indoor and outdoor air quality. In India the buildings are recognized as Green Building through getting Green Building certification by GRIHA (Green Rating Integrated Habitat Assessment),IGBC(Indian Green Building Council) & LEED(USGBC) mainly. Apart from these there are also various Certifications like GEM ,EDGE & BREAM which are considered as also Green Building Certifications. Various States & Central Government agencies in India are now more focused about the Green Buildings for promoting Energy Conservation measures in Buildings  & for that each State  has already started to provide additional incentives for Green Building Certified Projects in their respective States.

Various type of incentives which are announced & applied in different States are attached below:

Incentives Type:

  • Additional FAR/FSI(Floor Area Ratio/Floor Space Index).
  • Fees Reimbursement.
  • Rebate on Property Tax.
  • Reduction in Electricity tariff/Sell extra generated power to Govt.
  • Financial Support/Subsidy on Investment cost.
  • Financial Support by Granting Loans.
  • Cash/Appreciation Awards.

Let’s have a glance of incentives of different States in a mentioned table:

States Incentives Offered
Punjab Addiional 5% FAR free of charge (from Dept.of Local Government) Addiional 5% FAR free of charge,100% exemption of Building scrutiny fee ( from Dept. of Urban Devlopmment)
Rajasthan Additional 7.5%,10% & 15% FAR alongwith free of charge.
West Bengal Additional 10% FAR provided.
Uttar Pradesh Additional 5% FAR provided.
Haryana Additional 9%,12% & 15% FAR for Silver,Gold & Platinum respectively.
Himachal Pradesh Additional 10% FAR provided.
Greater Noida Additional 5% FAR excluding additional 15% FAR for services,free of cost provided.
Jharkhand Additional FAR 3%,5% & 7% for Silver,Gold & Platinum respectively.
Andhra Pradesh Offering 25% subsidy on total cost of Project( from Industries & Commerce Dept.)(for MSME ,Large industries) & 20% reduction on permit fees(from Urban Devlopment)
Tamilnadu offers a 25% subsidy on the cost of setting up environmental protection infrastructure, subject to a limit of Rs. 1Cr. For Industrial Projects.
Gujrat Offers reimbursement of 50% certification fee to hotels,resorts etc.(from Gujrat Tourism)Incentives upto 50% of consultation charges for Industrial Buildings.
Maharasthra Additional FAR of 3%,5% &7% for Green Buildings for Silver,Gold,Platinum respectively.

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