Builders can seek tax rebates: Urban department notifies ‘green building’ policy

The Indian Green Building Council (IGBC) defines a green building as the one, which uses less water, optimises energy efficiency, conserves natural resources, generates less waste and provides for healthier spaces for occupants as compared to a conventional building.

| Mumbai | Updated: November 7, 2018 6:38:46 am
Builders can seek tax rebates: Urban department notifies ‘green building’ policy Officials said following green policy norms may add to the builders’ cost. (File)

THE STATE urban development department on Tuesday notified its ‘green building’ policy, under which, builders and housing societies obtaining the green building certificate can seek rebates on taxes and development charges.

According to the policy, builders can avail rebate of up to 10 per cent on development charges and societies or homebuyers can get a rebate on property tax up to 10 per cent. The department has invited public suggestions and objection for the same.

The Indian Green Building Council (IGBC) defines a green building as the one, which uses less water, optimises energy efficiency, conserves natural resources, generates less waste and provides for healthier spaces for occupants as compared to a conventional building. In 2012, the government had introduced a scheme, under which, buildings with green certification were given priority for environmental clearnace that would often take over a year to be obtained.

However, the scheme received a lukewarm response. Builders had earlier demanded perks in terms of increased FSI against green certification. However, the government is yet to take a decision in this regard with some of its departments opposed to the move.

The government is planning to sign a memorandum of understanding with TERI-GRIHA (Green Rating for Integrated Habitat Assessment) and GBCI-LEED (Leadership in energy and Environmental Design). GBCI is A Green Business Certification Inc. If builders want green building certification, they would have to submit their plans to this organisation and meet the criteria of a green building. At the time of getting the Occupation Certificate, (OC) builders will have to meet the condition what they had made with TERI-GRIHA and GBCI-LEED.

Officials said following green policy norms may add to the builders’ cost. As the government does want to put the additional burden on homebuyers, it has proposed incentives in the form of rebate on property tax and development charges, officials said.

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