The largest pure-play mortgage player HDFC has disbursed over 14,000 crores of retails loans to home buyers in 310 certified green building projects as of December 23, 2020. The bank announced a tie-up with the Indian Green Building Council (IGBC) to promote green housing and thereby creating awareness about green buildings.
In the webinar Amrit Abhijat, the joint secretary in the Union housing & urban development ministry addressed the gathering and expressed his confidence that the initiative will go a long way in promoting green housing along with specifically designed lending policies. HDFC stated that much as 75 per cent of its lease rental discounting portfolio has green ratings. The move from HDFC bank also aims to promote the financing of green buildings.
Fast-track environmental clearance is offered by the government to green projects pre-certified/ provisionally certified by the IGBC and thus pushing green building. Based on the green rating of the project some states have also allowed additional FAR (floor area ratio) to green housing projects to the tune of 1-10 per cent. Few states are allowing property tax rebate on the green rating.
The managing director of National Housing Bank (NHB), S K Hota expressed that there was a need for popularising and promoting green housing among the low and middle-income segments. There should be an effort for making an adequate number of affordable green housing stocks. NHB can provide cheaper refinance to green buildings and it can be promoted by the cheaper fund. Around 1.25 trillion investments could be absorbed by green housing between 2018 and 2030 according to International Finance Corporation (IFC)
The managing director of HDFC, Renu Sud Karnad stated that there was huge growth for the bank in the housing sector category due to stable property prices, lower stamp duty and historically lowest interest rates. Presently IGBC has over 7 billion sqft of green building footprint across various geographies spread over the country. In 2003 it was 20,000 sqft, two years after the council was formed.
