The Maharashtra government proposes to amend the Development Control Rules for the introduction of green building regulations initially in Mumbai and later in Tier-two cities of the state.
Under these regulations, it will be mandatory for new buildings to use green technologies for recycling dry waste and drainage water, vermiculture for treatment of wet waste, solar energy and above all rainwater harvesting.
The government proposes to provide incentives in the form of rationalisation in property tax and electricity tariff, and reduction in state taxes like VAT and Octroi on green technologies. The government's move comes at a time when Mumbai is reeling under acute water shortage and is expected to face power deficit soon.
Similar initiatives have been taken by Delhi, West Bengal, Karnataka, Kerala and Rajasthan. However, said sources in the realty sector, Maharashtra will be the first to put these incentives in a regulatory framework.
"The department of urban development, housing and environment will hold a meeting on January 4 to look into various aspects of green building regulations and the implementation procedures in Mumbai and later in Tier-two cities,” a senior state government official, who did not want to be quoted, told Business Standard on Saturday. “Already, the BrihanMumbai Municipal Corporation through a notification has asked developers of new buildings to go for rainwater harvesting. The objective of the proposed green building regulations is to make all efforts to minimise the impact of climate change. However, while doing so, it should not affect the government's target of affordable housing in Mumbai and the rest of Maharashtra."
Green technologies can often push up the construction costs. But the relaxation in property tax would bring down the cost of green technologies in new buildings. "At present, property tax in Greater Mumbai and its suburbs varies from Rs 4.50 per sq ft to Rs 12 sq ft.
In Tier-two cities, property tax is comparatively low which ranges from Rs 1.25 to Rs 2 per sq ft. The relaxation in property tax will be a major incentive,” said a member of the Maharashtra Chamber of Housing Industry, speaking on the condition of anonymity. He added that solar energy technology is quite costly and thus the government may consider a subsidy on it.
The government official admitted that at present these green technologies are quite costly and ultimately the burden will be borne by the customers. For example, the cost of biodegradable plastic manufacturing machine at present is Rs 5 lakh. The government may consider providing certain concessions in duties in order to reduce its cost.
