HDFC Ltd Signs MOU with CII’s Indian Green Building Council (IGBC) to Promote Green Building Initiatives

HDFC Ltd, India’s premier housing finance company signed a Memorandum of Understanding (MOU) with the Indian Green Building Council (IGBC) to promote green buildings in the country. HDFC intends to work with IGBC to create awareness and promote financing of green buildings in the country.

Under the MOU, HDFC and IGBC will promote green housing by jointly organising training and awareness programmes to facilitate capacity building across the country. 

Mr. Amrit Abhijat, IAS, Joint Secretary, Ministry of Housing & Urban Affairs said, “It is a unique initiative to promote green buildings which is the need of the hour and I am glad to know that a financial institution like HDFC has devised specific policies to promote green buildings.”

Speaking on the occasion, Mr. S K Hota, Managing Director, NHB emphasised the need for promoting and popularising green labelled housing amongst the low and middle income segments. He also stressed on making adequate green labelled affordable housing stock available as an option to home buyers in all marketing platforms.   

Speaking on the occasion, Ms. Renu Sud Karnad, Managing Director, HDFC Ltd said, “We are witnessing a huge growth in the housing sector with the government’s focus on ’Housing for All by 2022’. With the lowest ever interest rates on home loans, stable property prices and concessions on stamp duty rates by some states, the demand for housing is likely to increase. As the sector is growing rapidly, preserving the environment is of utmost importance. We need more energy efficient, smart, green buildings. This MOU will enable us to promote more financing of green buildings in India. As stakeholders, we all have a role to play in reducing our carbon footprint and safeguarding the environment.” 

Mr V Suresh, Chairman, IGBC, said “NHB & HDFC service to the nation in supporting development of building habitats of all forms is unparalleled especially in Housing Sector. IGBC is committed to contribute in the sustainable development of built environment in the country. The contribution of Financial Institutions like NHB, HDFC, etc in this green journey has been phenomenal. Today’s formal engagement with HDFC will help advance the National green building movement.”

Mr Ravi Aggarwal, Cofounder and Group Managing Director – Signature Global, who are developing affordable green projects in Gurgaon (Haryana) said, “All buildings in India should have green components. Developing green buildings in the country is highly recommended as pollution is on the rise here. Encouraging more and more developers to go for green building concept is the need of the hour. The government should incentivize developers by offering 10% additional FAR in return. We are developing 7 IGBC gold rated residential projects at the moment which contribute to the environment in every possible way and promise to offer better lives to its residents.”

HDFC as of Dec 23, 2020 has disbursed over 14,000 Cr worth retails loans to home buyers in 310 certified green building projects across the country.  Further 75% of our lease rental discounting portfolio has green ratings.

The government is also pushing the green building movement in India by offering fast-track environmental clearance for green building projects which are pre-certified/ provisionally certified by IGBC. Additional FAR (Floor Area Ratio) is also been given in some states to such projects ranging from 1-10% depending upon the rating of project. Property Tax rebate is also being given to property owners in few states based on the rating of the project.

A Green building, or sustainable design, is the practice of increasing the efficiency with which buildings and their sites use energy, water, and materials, and of reducing impacts on human health and the environment for the entire lifecycle of a building.  Green-building concepts extend beyond the walls of buildings and include site planning, community and land-use planning issues as well. A ‘green’ building, in its design, construction or operation, reduces or eliminates negative impacts, and can create positive impacts, on our climate and natural environment. Green buildings preserve precious natural resources and improve our quality of life.