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

New Delhi, December 24, 2020: 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. 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.”

Ravi Aggarwal, Co-founder and Group Managing Director, Signature Global, pioneers of affordable green projects in Gurgaon (Haryana) said, “All buildings in India should have green components. Developing green buildings in the country is important 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% FAR instead of 5 %in IGBC Gold rated projects. 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.”

He suggested, “The time taken by the authorities for an approval of a green building is normally 45-60days, which should be reduced to 15 days. This way the process will be cost and time effective.” The basic idea is to create an atmosphere where developers do not hesitate to go for the green building concept. “Funding for an IGBC project in the affordable category should be at low cost, RBI should take steps towards it by giving Affordable Housing an infrastructure status”, he added.

Speaking on the occasion, S K Hota, Managing Director, NHB emphasized 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, 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.”

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.”

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.

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.