CREDAI Members Undertake Green Projects of over 32M Sq. ft. with IGBC under ‘Green Crusaders’ Program

CREDAI has also laid out a suggestive nationalized policy plan that can help create a thriving green development eco-system in India.

On the occasion of World Environment Day, Apex body of Real Estate Developers, CREDAI, announced that its member developers have undertaken more than 55 green projects, totalling 32 million square feet with the Indian Green Building Council (IGBC), under CREDAI’s ‘Green Crusaders’ Program. These projects are part of CREDAI’s commitment towards developing 4000 green projects by 2030.

CREDAI has also put together a suggestive policy framework that can help achieve a thriving eco-system to drive both demand and supply of Green Development projects in India. Identifying successful state level policies that have enabled green development in local markets, CREDAI intends to advocate the replication of the same to build a standard national policy framework as Indian Real Estate marches towards an era of Green, sustainability-led development:

Increase in FSI/ FAR – Different State policies have allowed for higher FSI/ FAR for developers in the case of Green certified projects. Allowing a higher FSI will incentivize developers which will also lead to higher value creation overall – resulting in a win-win situation. Several states across India have implemented these policies, including Punjab, Rajasthan, West Bengal, Uttar Pradesh, Haryana, Maharashtra, Andhra Pradesh, Gujarat, Kerala, and Uttarakhand.

Fast track/ Single Window Environmental Clearance – Facilitating a single window clearance will lead to lesser costs and compliances and enhance the turnaround time for building green projects. Addressing a major compliance roadblock will encourage developers to construct and increase the volume of green buildings across India. Numerous states across India, including Punjab, Rajasthan, West Bengal, Uttar Pradesh, Haryana, Maharashtra, Andhra Pradesh, Gujarat, Kerala, and Uttarakhand, have integrated these policies to facilitate a single window clearance.

Fee Waivers and Subsidies for MSME Developers - In certain states, there is also a provision to provide subsidies/ reimbursements on amount paid to the plant or on fixed capital investment. This should be replicated across the country as it will provide substantial financial benefits which will also have a positive impact on project costs and housing prices.

Concessional Interest Rates from Financial Institutions - Green building Projects should also be eligible for financial assistance in the form of concessional rates from all financial institutions, including Banks and NBFCs, to provide a more conducive financial eco-system that can enable and incentivize developers even more.

CREDAI National President Mr. Boman Irani, shares his thoughts “CREDAI is aggressively striving towards increasing awareness for further adoption of green building practices, which is line with our overarching objective of achieving Net Zero for Indian Real estate. I’m extremely happy that CREDAI members across the country are supporting this initiative & we are highly optimistic that it will lead to a transformative impact on the construction sector, fostering sustainability in the long run”.