Green is the latest buzzword for the Indian real estate industry with many developers getting their buildings certified and rated. However, Brotin Banerjee, MD and CEO of Tata Housing Development Company Limited, tells Kirtika Suneja that the government should promote such projects and tax breaks to encourage the country?s environment initiatives. Excerpts:
Why have green buildings become so popular among developers and what differentiates you from them?
A developer enhances his budget to cater to the green norms in the hope of getting better returns and also because he is socially conscious of his carbon footprint. Though every developer is today talking about green developments, there are only a few who actually implement it. Tata Housing constructs only green buildings in both residential and commercial areas.
What parameters do you consider while constructing a green building?
Green building can involve many facets, but the main objectives include efficient use of land and energy, water conservation, improved indoor air quality, and resource conservation, primarily by using recycled and regional materials. The five main aspects currently adopted are design and architecture of a green building, water conservation, use of solar/wind energy, solar water heating and sewage, and garbage processing. Conventionally-built buildings use more energy than necessary. Designing and operating buildings from an energy efficient perspective can significantly reduce energy wastage, water usage and materials.
So what sort of savings accrue to the buyer and is there a premium attached with their pricing?
Besides a 10-15% saving on electricity and energy consumption, the recycling of water has a cascading effect. These are tangible results and can be measured over time. As for the costing, the platinum-certified buildings cost 5-7% more, while the gold certified ones cost 3-4% more than conventional buildings. As far as the pricing of green buildings in the luxury segment is concerned, we charge a premium of 10-15% compared with our competitors, but that is not only because of the sustainability factor but also due to location, architecture and the brand.
Which industry body are you associated with for green building ratings?
We get our projects approved by the Indian Green Buildings Council (IGBC) and 80% of the Tata Housing portfolio consists of residential buildings and all our projects, residential as well commercial, are sustainable green developments. For instance, Aquila Heights in Bangalore and Raisina Residency in Gurgaon are IGBC gold certified, while our Luxury villa project in Lonavala is platinum rated.
What is the market for green buildings in India and what sort of growth do you see in this market?
The market is estimated at more than $36 billion and with growing awareness about green buildings and higher demand for the same, the market for such eco-friendly structures is expected to reach an all-time high.
The Ministry of Environment and Forests has decided to give preference to green-certified buildings while giving environment clearances. Will this boost the sector?
This is a step in the right direction and the government should promote such projects and also offer tax breaks to encourage developers. In fact, the government should make it mandatory for all buildings to be green certified by making strict guidelines. It will be a win-win situation for everyone and give a fillip to the environment industry. Going ahead, this will lead to a drop in the capital costs of energy efficiency due to economies of scale.
