The Hindu Business Line : Going green makes economic sense too

The cost of constructing a green building is around 8 per cent higher than that of a non-green one, but the breakeven period is as low as 2-3 years through savings on energy costs.

Divya Trivedi

Betting big on the profitability of ‘green buildings’, the promoter of Kensville Golf Club, Savvy Infrastructure Ltd, is investing around Rs 400 crore in developing both commercial and residential projects over the next two years.

“As a philosophy, we have been using green materials for our buildings but now we have committed ourselves to going green in all our constructions. Currently, we are working on a commercial project worth Rs 300 crore — Shapath V — coming up on 20,000 sq.yards. It will be a mix of ownership and lease and will also house the Intercontinental Crowne Plaza Hotel,” Mr Sameer Sinha, Director, told Business Line.

The company is aiming for a LEED certification in Gold by the Indian Green Building Council for Shapath V, which is located in an upcoming business area of Ahmedabad.

The building will meet all the specifications of a ‘green building’ and will have a positive impact on the long-term return on investments for the company, he said.

The cost of constructing a green building is around 8 per cent higher than that of a non-green building, but the breakeven period is as low as 2-3 years through savings on energy costs, etc, said Mr Sinha. The average annual cost of ownership of a green house can be 30-40 per cent lower than a non-green one and it makes more sense economically due to its high marketability and rentals, he added.

“Certain parameters such as operational efficiency and human wellbeing index are taken into consideration, which are visible only when one starts using the building,” he said.

The Rs 600-crore Savvy has just begun construction on Solaris — a 400-apartment residential complex. The total size of the project is Rs 100 crore and it is expected to be ready in two years’ time, according to Mr Sinha. It will be the first ‘green’ residential building complex in the city.

Incentivising

Though developers in other cities have done a lot of work in the environmental-friendly green building space, Gujarat is still lagging behind with just 13 buildings lined up for certification this year.

Stamp duty exemptions and additional FSI are some of the incentives that Maharashtra and Andhra Pradesh provide for green buildings that need to be provided in Gujarat as well, said Mr Jaxay Shah, President, Confederation of Real Estate Developers Association of India, Gujarat.

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