sustainable construction practices in india market reports... · a vestian report in association...

A Vestian Report in association with Assetz

SUSTAINABLE CONSTRUCTION PRACTICES IN INDIA

June 2016


Vestian-Assetz report5

INDEX

The Concept of Green Buildings Page 5

Executive Summary Page 3

Introduction Page 4

Green Building Rating Page 8

Policy Initiatives for Green Buildings in India Page 7

Market Overview for Green Buildings Page 10

Industry Survey Results Page 14

Cost Benefit Analysis for Green Buildings Page 15

Tax Incentives for Green Buildings Page 16

Way Forward Page 17

Emerging Trends Page 18

Case Studies 2


Vestian-Assetz Report 2

Executive Summary

We live in a modern, consumerist and largely urban world consuming more energy and resources than we can replenish. Increasing global population, urbanization, rising income level and the resultant increase in consumption has resulted in unprecedented environmental damage shifting the global focus towards sustainable development. Buildings worldwide consume 30% of the planet’s energy and 40% of its resources generating about 40% of the waste and emitting 35% of the green house gases (GHG). The Indian Real Estate sector is growing at a CAGR of 11.2% resulting in an enormous demand for energy, water and other resources. However, an overall energy shortage in the country has made it imperative for developers and space occupiers to consider constructing and occupying green buildings.

A green building is defined as one which uses less water, optimizes energy efficiency, conserves natural resources, generates less waste and provides healthier living spaces for its occupants throughout its life cycle.

Governments across the world have initiated policies to address country specific barriers to the propagation of green buildings. Globally, green rating is emerging as a popular tool to drive the construction sector to adopt sustainable practices, often preceding regulatory mandates and helps defining standards. In India, IGBC and GRIHA are the two popular green rating systems. These rating systems have been conceived to suit the climatic conditions and aligned with national priorities. Based on the area of projects registered, IGBC accounts for close to 99% of the market.

India has the second largest registered green footprint in the world next only to USA. Mumbai accounts for the largest


Vestian-Assetz Report3

share of green buildings at 20% followed by Pune, Bangalore and Chennai at 10%, 9% and 9% respectively. There are a large number of green certified buildings in Tier III cities also.Demand from occupiers with green mandates, global investors as well as National Environmental Regulations and policies are the key drivers for green commercial spaces. Commercial spaces account for 56% of the certified green spaces in India. Green certified residential buildings account for only 13.22% of the certified green buildings in India and are yet to gain prominence due to a lack of a structured post construction performance monitoring system highlighting the benefits of going green. Social responsibility and reduced operating costs are the key drivers for green hotels in India. Initial construction cost for green buildings are higher by 2%-12% while the benefits are significant in terms of reduced energy and water consumption, waste generation and carbon emission bringing down the operating expenses by 30%. These buildings also achieve rental premium of 2% and are occupied by Fortune 500 tenants.

Globally, the outlook for green buildings is positive with the implementation of Paris Agreement. Unprecedented innovations are expected in green building design and materials over the next 3-5 years. The green building market in India is in a nascent stage but by 2025 green building standards are expected to be incorporated in the building codes making them the new standard for the construction industry. The Smart City initiative is also likely have a positive impact on the green building movement combining smart technology and green construction practices. On the implementation side, for green buildings to be truly successful in India, it is imperative to establish a strong post construction monitoring system.

Introduction

We live in a modern, consumerist and largely urban world1 consuming more energy and resources than we can replen-ish. Historically, man’s need for technological and economic advancement has resulted in environmental degradation. Today, increasing global population, urbanization, rising income level and resultant increase in consumption are adding a lot of pressure on precious natural resources. The concept of sustainable development was first defined by the United Nations in the 1987 Brundtland Commission Report as “developments that meet the needs of the present without compromising the ability of the future generations to meet their own needs”.

Sustainability and sustainable development focus on balancing the fine line between our competing needs our need to move forward technologically and economically, and the need to protect the environment in which we live2.

Environmental

SustainableDevelopment

Social

A Viable Natural Environment

SustainableNatural & Build

Environment

NurtuirngCommunity

Economic

Sufficient Economy

SustainableEconomic

Development

SustainableSocial

Environment



1 www.environmentalscience.org, May 20162 ibid

Source: conceptdraw.com

Starting in the 1930s, new building technologies began to transform the urban landscape. The advent of air-condition-ing, elevators, low wattage fluorescent lighting, structural steel and reflective glass made possible enclosed glass and steel structures that could be heated and cooled with massive HVAC systems due to the availability of cheap fossil fuels in the developed economies. Soon this design, known as International Style “Glass Box” became the design icon of most American cities3, which was later emulated by cities around the world.

It is broadly estimated that buildings worldwide consume about 40% of the planet’s material resources and 30% of its energy. The construction of buildings is reported to consume 3 billion tonnes of raw materials per year and generates between 10 and 40 per cent of the solid waste streams in most countries. The manufacture of many of the materials used in buildings require the consumption of large amounts of energy derived from the fossil fuels and the displacement of mega-tonnes of earth during the course of mining4.

The Indian Economy has grown at an average of 6.6% over the last 5 years, and is expected to grow at an average rate of 7.5% over the next 5 years5. The Indian Real Estate sector is expected to reach USD 180 billion in 2020 and is growing at a CAGR of 11.2%6. Every year this sector adds close to 0.5 billion sqft of residential and commercial space resulting in an enormous demand for energy, water and other resources. India is already facing an overall energy shortage of 9.8% and a peak shortage of 16.6%7, making it imperative for developers and space occupiers to consider constructing and occupying “Green Buildings”.

The Concept of Green Buildings

3 White Paper on Sustainability – A Report on the Green Building Movement, 2003, published by Building Design and Construction, USA.4 Chaterjee, A.K., 2009, “Sustainable Construction and Green Buildings on the foundation of Building Ecology”, Indian Concrete Journal, Page 27.5 http://data.worldbank.org/country/india, referred May 20166 http://www.ibef.org/industry/real-estate-india.aspx7 Bassi, S., “Implementing Energy Efficiency in Buildings”, UNDP-GEF_BEE



40% of Resources

25% of Water

30% of Energy

40% of Waste

35% of GHG Emissions

Buildings world wide consume

and generate

Source: United Nations Environment Program, 2009

A green building is defined as one which uses less water, optimises energy efficiency, conserves natural resources, generates less waste and provides healthier space for occupants compared to conventional buildings8. It is an environmentally sustainable building, designed constructed and operated to minimize total environmental impacts.

A green building aims to lower environmental impacts, maximize social and economic value over a building life cycle through site selection, design, construction, operation, maintenance, renovation and demolition.

The key objectives are:

8 Source: IGBC, May 2016

CREATE RESILIENT & FLEXIBLE STRUCTURES Designing spaces that are flexible to changing uses over long term in order to avoid demolition and rebuilding Designing resilient structures that will safeguard people in the events of natural calamities

ENERGY CONSERVATION Minimising energy use through design Integrating renewable and low carbon technologies to supply the building’s energy needs

CONNECTING PEOPLE Ensuring proximity to physical and social infrastructure in order to reduce burden on personal transport, encouraging use of public transport and eco-friendly ways like cycling Exploring potential of smart technologies and ICT, such as smart electricity grids, FTTH to connect with the world

WATER CONSERVATION Minimise water use, harvest waste water and improve efficiency and management of drinking & waste water Consider impact of built-environment on storm water and drainage infrastructure

MINIMIZE WASTE & MAXIMIZE REUSE Use of fewer and more durable material for construction Generating less waste during the lifecycle by engaging building users in reuse and recycling Designing for demolition waste recovery and reuse KEEPING LANDSCAPE

GREEN Preserving natural vegetation Reuse of brownfield land Ringing agriculture into cities

PROMOTE HEALTH & WELLBEING OF INHABITANTS Designing for natural light, ventilation and exterior views Designing for acoustics and sound insulation Ensuring comfort and well being of users

OBJECTIVES OFGREEN BUILDINGS



Governments around the world have initiated policies to address country specific barriers to the propagation of green buildings. Several government programmes have been initiated to advance building efficiencies in India over the last two decades.

2001: Energy Conservation Act (ECA) 2001

2001: Establishment of Indian Green Building Council (IGBC), part of Confederation of Indian Industry (CII)

2002: Formation of Bureau of Energy Efficiency (BEE) under ECA 2001.

2005: Bureau of Indian Standards published the National Building Code

2006: Planning Commission, under the direction of the Prime Minister of India, issued the integrated Energy policy draft

2006: Ministry of Environment and Forests (MoEF) makes and Environment Impact Assessment (EIA) mandatory for all

buildings with a built up area of 20,000 sqm.

2007: BEE formulated the Energy Conservation Building Code (ECBC)

2007: Green Rating for Integrated Habitat Assessment (GRIHA) was adopted as the national rating system for green

buildings in India.

2008: National Action Plan on Climate Change was launched; Integrated Energy Policy 2008 approved by the cabinet

2014: Announcement of Smart Cities programme

2015: India signs UN Climate Change Paris Agreement

2016: First 20 Smart Cities announced

2016: States of Andhra Pradesh and Telangana adopting mandatory compliance measures for building efficiency

Policy Initiatives for Green Buildings in IndiaSUSTAINABLE CONSTRUCTION PRACTICES IN INDIA


Particulars

Focus Areas

Regulations

Type of Buildings

Presence

Energy Efficient Buildings

Stage 1 Stage 2 Stage 3 Stage 4

High-performance Environmentally

Responsive Smart Green Buildings

Net Zero Energy Buildings

Carbon Neutral Buildings & Eco-Districts

Understanding the environmental impact of buildings Improving efficiency and operational performance over time Regulations to reduce energy and water usage and waste generation Building a business case for green buildings

Voluntary rating system Establishing Green Building Codes

Residential & commercial new construction

Focus not only on new construction but retrofitting existing buildings to greener standards

Currently these have been achieved in individual houses and smaller commercial buildings.

Not just buildings are carbon neutral but entire neighborhoods, cities and regions achieve zero emissions.

India and most emerging economies

Developed economies in Europe such as Germany, UK and the scandinavian countries and countries in Asia Pacific such as Japan and Australia

Governments around the developed world are focusing on achieving marketable net zero energy residential and commercial buildings by 2025.

There are very few carbon neutral buildings around the world. Several pilot eco-districts have been selected in cities like Portland, Oregon and SanFrancisco in California, USA

Cities and states demand building performance disclosure Green buildings are the new standard for Class A buildings

Countries adopt reduced carbon emission goals and to achieve this research on all aspects from building design to materials and renewable energy sources are being carried out

Government (mostly state and local) set rigorous standards for green city initiative

Net zero energy buildings- where the amount of energy used by the building is equivalent to the amount of energy created on site or elsewhere Incorporating renewable energy, green construction and green transportation

Carbon neutral buildings are buildings where not only the operating emissions are zero but the embodied energy is neutral

Buildings combine green and smart technologies

Source: Vestian Research

Table 1: Evolution of Green Building Movement

9 Green Building Rating: Overrated, 2011, published by Centre for Science and Environment, New Delhi.

Globally green rating is emerging as a popular tool to drive the construction sector to adopt sustainable practices. Ratings are largely voluntary schemes that are expected to stimulate market and consumer interest in green buildings and have often preceded regulatory mandates and helped in defining standards. Unlike regulations -- that are often impeded by structural and institutional barriers, rating is a legitimate way of changing practice and influencing change9. A wide range of rating systems have evolved around the world based on local climates and geographical conditions.

In India, IGBC and GRIHA are the two popular voluntary green building rating systems.

Green Building Rating

Green rating systems around the world

United States

United Kingdom

Leadership in Energy & Environmental Design (LEED-United States)

The Green Globe Rating System

Energy Star (United States Environment Protection Agency)

Building Research Environment Assessment Method Consultancy (BREEAM)

India GRIHA

Indian Green Building Council (IGBC)

Canada

Europe

Leadership in Energy & Environmental

Design - Canada (LEED-Canada)

European Environment Agency Rating

Australia Green Star

Australia Greenhouse Building Rating (AGBR)

Hong Kong Building Environment Assessment Method - Hong Kong (HK-BEAM)

Singapore BCA Green Mark

Philippines Philippine Green Building Council

Japan Comprehensive Assessment System for Building Environment

Efficiency (CASBEE)

South Korea Green Building Council (Korea)

Tiwan Ecology, Energy Saving, Waste

Reduction and Health (EEWH)

(Taiwan)



Indian Green Building Council - LEED (Leadership in Energy and Environmental Design)

IGBC, part of the CII with the support of all stake-holders has launched 13 indegenous green building rating systems to suit five climatic zones of India and are aligned with national priorities. IGBC rating system is based on the performance of a building in five key areas namely: sustainable site development, energy efficiency, water savings, material selection and indoor environmental quality.

Green Rating for Integrated Habitat Assessment (GRIHA)

This rating method was conceived by The Energy Research Institute (TERI) and jointly developed by the Ministry of New and Renewable Energy (MNRE) as the national rating system for green buildings in India. It is a 100 point system with a set of 34 criteria of which some are mandatory. Minimum qualifying score is 50 and rating is 1-5 stars with 1 star for every 10 points above 50.

• GRIHA Pre-certification (for fast track environmental clearance)• SVA (Small, Versatile, Affordable) GRIHA• GRIHA for large developments• GRIHA Prakruti (Rating for Schools)

Green Building Rating

Table 1: LEED India Certification Levels

Certification Level

Certified

Silver

Gold

Platinum

Super Platinum

Owner-occupied Buildings

50 - 59

60 - 69

70 - 79

80 - 89

90 - 100

Tenant-occupied Buildings

50 - 59

60 - 69

70 - 79

80 - 89

90 - 100

Recognition

Good Practicies

Best Practicies

Outstanding Performance

National Excellence

Global Leadership

Table 2: GRIHA Certification Levels

Points Scored Rating

50-60 One Star

61-70 Two Star

71-80 Three Star

81-90 Four Star

91-100 Five Star



IGBC has programmes that rate under the following categories:

• IGBC Green New Buildings• IGBC Green Existing Buildings• IGBC Green Homes• IGBC Green Schools• IGBC Green Factory Buildings• IGBC Green SEZs• IGBC Green Landscape• IGBC Green Interiors• IGBC Green Residential Societies• IGBC Green Campus• IGBC Green MRTS• IGBC Green Townships• IGBC Green Cities

Green Building Footprint in India• Both IGBC and GRIHA provide green building certification

in India. However, the market share of GRIHA is only 1%

of the total green building market in India.

• According to the IGBC, the total registered green footprint

of India (3.59 billion sqft) is the second largest in the world

next only to USA which has 13.8 billion sqft of LEED

certified spaces.

• The market size for green buildings in India is expected to

grow to 10 billion sqft in 2022 from the current 3.59

billion sqft. (Note: Area mentioned is registered area and

not certified area). Between 2013 and 2016, the market

size is growing at a rate (CAGR) of 30%.

• Only 7.1% of the projects registered are certified.

City Wise Distribution• In terms of city level distribution, Mumbai has the

maximum number of green buildings registered followed

by Pune and Bangalore.

• Green rating is not just restricted to projects in Tier I and

II cities, there are certified buildings in Tier III cities like

Indore, Nagpur and Coimbatore as well. Most buildings

going for green rating in Tier III cities include hotels,

public and institutional buildings.

Market Overview ForGreen Buildings10

10 Based on IGBC Statistics as it represents 99% of the green building market in India.

Figure 1: Projects registered under IGBC in India

Figure 2: Market Share of IGBC and GRIHA, 2016*

Figure 3: City Wise Distribution of Certified Green Buildings

12

10

8

6

4

2

0

1.52

2013

In b

illio

n sq

ft

2013

2016 2022 (projected)

3.59

CAGR - 30%

10

2016 2022 (projected)

IGBC 99%

GRIHA 1%

Mumbai20%

Pune10%

Bangalore9%

Chennai9%Noida

7%

Hyderabad7%

New Delhi5%

Kolkata4%

Gurgaon4%

Others21%

4%Ahmedabad

20%

Bang9

Ch iydydy erabad

elhi

21%

dCity Wise

Distribution



Source: IGBC, 2016

Source: IGBC, 2016

Source: Vestian Research, 2016

* Based on registered area

• 56% of the buildings certified by IGBC are commercial

buildings. Corporate tenants both Multi-National Corpo-

rations (MNC) and Indian business houses are seeking

sustainable spaces to meet their global environmental

policies. Other than cutting operating costs, this move

also helps them retain employees, differentiate their

products, improve their image to customers and satisfy

share holder demands11.

Global property investors who invest in large commercial

spaces around the world expect standards similar to

buildings in the developed world, thereby pushing the

sustainability standards for commercial buildings in devel-

oping nations.

The Energy Conservation Act 2002, has mandated

buildings to operate more efficiently. Environmental

Impact Assessments are mandatory for all buildings

above 20,000 sqm.

Although third party office development in Bangalore has

picked up only in the last 2-3 decades, Green Building

Certification is a more recent phenomenon post 2003.

Only 10% of the total office stock is green certified12.

In most developing nations, where green building

initiative is still in a nascent stage, the greater share of

certified green buildings are owned by corporate owner

occupants and government agencies11. However, in

Bangalore, strong demand from corporate occupiers and

investors has resulted in a positive response from proper-

ty markets proven by the fact that more than 89% of the

green certified office buildings in the city are developed

by third party developers. The share of captive corporate

owner occupants is only 11%.

Key occupiers prefering sustainable office spaces include

Microsoft, Google, Cisco, Honeywell, Shell & Texas Instru-

ments. Indian companies that prefer green spaces include

Godrej, Tata, ITC, Mahindra, Kotak, Wipro and Infosys.

Notable green certified office buildings in Bangalore are

Embassy Tech Village, Pritech Park, Cessna Business Park,

RMZ Eco World on Outer Ring Road, Ascendas ITPB,

Prestige Shantiniketan, and Tata Xylem in Whitefield.

11 Nelson A. J., Globalization and Global Trends in Green Real Estate Investment, RREEF Research, 200812 Vestian Research, 2016

Figure 4: Distribution of IGBC Green Certified projects under various uses*

Figure 5: Green Certified Commercial office space in Bangalore



Demand from occupiers and global investors for green spaces & national environmental regulations and policies are the key drivers for green commercial spaces.

0

20

40

60

80

100

120

140

160

Non Captive

Are

a in

mill

ion

sqft

Captive

Total Commercial Stock Green Certified

Source: IGBC, 2016

Source: Vetsian Research, 2016

* Based on number of certified projects

Source: IGBC, 2016

Commercial 56%

Residential13%

Hospitality6%

Health Care 2%

Retail 2% Others17%

Educational Building 5%

Commercial

dential3%

ity

IGBC Green Certified Projects

• In India, out of the projects certified, only 13.22% are

residential projects. This percentage is expected to

increase significantly over the next 3-5 years on account

of the number of projects registered with IGBC and are

currently in the process of certification.

• Government regulations in India have mostly concentrat-

ed on commercial buildings till date, as they are the

largest consumers of energy due to the use of HVAC

systems and 24 hour power back up. Residential proper-

ties, except for 2% of the stock which falls in the

luxury/ultra luxury segment, in most parts of the country

do not use centralized heating and cooling systems.

• However, with the development of high-rise residential

buildings and large residential townships, energy usage

in residential buildings is also increasing.

• Environmental Impact Assessment has been made

mandatory for all projects with a built-up area of more

than 20,000 sqm; as a result several high rise residential

and township projects have taken the necessary steps

towards energy and water conservation as well as waste

management. These steps are sufficient for these

projects to get an IGBC Silver or Gold rating. However,

developers are not going for green certification as it

involves cost and timeline increase.

• The first residential building to be certified green by IGBC

in Bangalore was in the year 2012. Between 2012 and

2015 only 3%-5% of the residential projects launched

each year are IGBC certified or Pre-certified.

• Developers are willing to go for certification only if they

are assured of a premium on sale price for green projects

and buyers are reluctant to pay a premium for green

buildings due to the lack of evidences for savings in

operational costs in the absence of a structured perfor-

mance monitoring system post construction for an

official assessment of the intended and actual benefits of

green certified buildings.

• Moreover, in residential buildings the benefits of reduced

operating costs accrue to the buyers rather than the

developers. Therefore, several state governments are

trying to incentivise the development of green buildings

by providing additional FSI to developers. However, in

Figure 6: Rating Process and Timeline



Green certified residential developments are yet to gain prominence dueto a lack of a structured post construction performance monitoringsystem highlighting the benefits of going green.

Registration with IGBC

Final Submission

Pre-certification

Preliminary SubmissionThird Party assessors will review

and revert with queries


Final Certification Post evaluation of the project after construction completion

30 days for evaluationTime taken to revert with supportingdocuments depends on the developer

30 days for evaluation

Status update once in 6 monthsduring construction

Sour

ce: I

GBC

, 201

6

the absence of a performance monitoring system, sever-

al projects may make use of the additional FAR and fail to

actually implement the green initiatives on ground.

• The Hospitality sector has been one of the first sectors to

incorporate green construction practices and energy &

water conservation principles in India. The Orchid Hotel

in Mumbai was the first Ecotel certified hotel established

in 1997.



Social responsibility and reduced operating costs are the key driversfor green hotels in India.

Source: Vestian Research, 2016

Corporate Social Responsibility (CSR) and reduction in operating costs have been key drivers for the implementation of green

initiatives in hotel properties. The entry of international brands with high sustainability standards has made green initiatives

mandatory in order to have a competitive advantage. Not only are new hotels adopting green standards, retrofitting is widely

used in existing hotels to bring down operation costs.

The high costs involved in designing and retrofitting hotel properties to green standards makes it economically viable for premi-

um and luxury properties. Almost all the major hotel groups in India (both national and international brands) have announced

green initiatives and have ensured that all their luxury properties adopt green measures.

The Hospitality sector goes not only for LEED and GRIHA rating, but for other rating systems such as ECOTEL, Earth Check and

Green Globe Certification.

• Others

Other than commercial, residential and hotel buildings, Government buildings, convention centres, airports, schools, institu-

tional buildings hospitals, metros, factories and townships are also going for green certification.

Name of Hotel Operator Sustainability Programme

Marriott Hotels LEED Volume programme

Alila Hotels & Resorts Pvt Ltd Earth Check a�liation and benchmarking

Starwood Hotels Global citizenship and make a green choice

Movenpick Hotels & Resorts Green Globe certi�cation

Taj Group EARTH (Environment Awareness and Renewal at Taj Hotels)

ITC Group WelcomEnviron

Accor Hotels Planet 21

InterContinental Hotels Group IHG Green Engage System

Table 1: Sustainability programs adopted by various hotel operators

Key highlights of green building activity and trends in India, according to a survey conducted by Dodge Data & Analytics in 2015 with building industry professionals, are as follows:

• Global green building footprint doubles every three years and emerging economies like Brazil, India, Saudi Arabia and South Africa will be engines of green growth in the next three years.

• Globally, the key environmental reason for building green is to reduce energy consumption.

India Highlights

• In India, the green market is strong currently with 37% of the respondents already involved in green buildings. This is expected to strengthen further over the next three years.

• New commercial and new high rise residential are the key sector with highest anticipated activity.

• Environmental regulation is the key triggers for new green buildings in India as against client demand which is the key trigger globally.

• Social reasons for building green included creating a sense of community and supporting growth of domestic economy.

• Encouraging sustainable business practice was the key environmental reason for building green in India

• Lack of awareness and concerns about corruption are the key bottlenecks preventing the growth of green market.

• According to survey respondents, the payback period was reported to be 4-5 years which is lower than the global average suggesting that construction costs are lower than other countries in the survey.

Industry Survey Results13

13 These results are based on a survey conducted by Dodge Data & Analytics with over 1000 building industry professionals in 13 countries and published as World Green Building Trends, 2016.

Figure 5 : Green share of building project activity

Figure 5: Levels of Green Building Activity

Figure 6: Top triggers driving future building activities in India

Table 1: LEED India Certification Levels

New GreenBuilding

10%

15%

4

11%

16%

5

Green Retrofit

Decreased operating costs over one year

Decreased operating costs over five years

Payback time for greeninvestments (years)

37%

63%

Green Share Non Green Share

3

%

Green Share

Exploring (no green involvement) 1% to 15% green projects16% to 30% green projects 31% to 60% green projectsMore than 60% green projects

4%

16%

31%29%

20%

5%5%

14%

24%

52%

16%

31%29%

20%

24

Levels

52%

28%24% 22% 20%

35%

15%

25%

5%

23%

0%

10%

20%

30%

40%

50%

60%

EnvironmentRegulations

HealthierNeighborhood

Right things to do

EmployeeRecruitment

Lower OperatingCost

India Global



Inner circle represents 2015 values Outer circle represents 2018 projection

Cost Benefit Analysis for Green Buildings

Construction cost premium

Savings in energy consumption

2%-12%

25%-30%

Savings in water consumption20%-30%

Less waste generation50%

Reduced carbon emission35%

Rental premiums achieved in commercial buildings1.9%-2%

Reduction in building’s operating expenses30%

Increase in office space utilization

Almost 100% of the buildings occupied by Fortune 500 clients

40%

Cost

Ben

efit

sSUSTAINABLE CONSTRUCTION PRACTICES IN INDIA


Source: IGBC, 2016

Tax Incentives for Green Buildings

Governmentof India

State Government/Local Bodies

Financial Institutions

Fast track environmental clearance for IGBC and GRIHA pre-certified projects.

MNRE provides reimbusment of 90% of the registration -cum-rating fee for projects up to

5,000 sq m built up area with minium 3 star rating, and for projects >5,000 sq m built up

area with minimum 4-star rating.

Additional Floor Area Ratio (FAR) and/ or concessions on premium for FAR for buildings

with minimum green rating. Cities providing additional FAR include Noida, Kolkata and

Jaipur and the state of Punjab.

Developer can avail discount on building permission charges (Pune and Kolkata) and

rebate on property tax (Pune and Hyderabad).

Energy Conservation Building Code (ECBC) for commercial buildings has been notified in

Rajasthan, Odisha, Uttrakhand, Punjab, Karnataka, Andhra Pradesh and Puducherry.

Further, Uttar Pradesh, Kerala, Chhattisgarh, Gujarat, Bihar, Tamil Nadu, Haryana,

Lower margins, intrest rate and reduced processing fee and higher repayment tenure for

green rated buildings.

Financing for energy efficiency audits, retrofits and upgrades.

Equipment subsidy for solar water heater installation.

Provide financing to Energy Service Companies (ESCOs)

ICICI Bank, IDBI Bank, IL & FS, IREDA, SBI and Yes Bank are the key banks providing one or

more of the above financial assistance to green rated buildings14.



14 Constructing Change: Accelerating Energy Efficeiency in India’s Buildings Market, ASCI, NRDC, 2012

630 East

• Globally the outlook for green buildings is positive with the implementation of the Paris Agreement. India aims to scale up its renewable energy capacity 5 folds from 35 GW* in 2015 to 175 GW in 2022. In addition, India aims to achieve ~40% cumulative electric power installed capacity from non fossil fuel based sources by 203015.

• Globally, green buildings are moving towards net zero energy buildings. However, the green building market in India is still in a nascent stage. By 2025, green building standards are expected to be incorporated in the building codes across India and will be the new standard for construction industry. With the announcement of a 100 Smart Cities initiative, Indian Real Estate industry will work towards smart green homes combining technology and green construction practices.

• Key demand drivers will be occupiers with green mandates and government regulations.

• New buildings both commercial and high rise residential are likely to drive the green building market in India over the next 3-5 years. In cities like Mumbai however, retrofits will also gain significance.

• Green building activities will not be restricted to just Tier I and II cities but will be adopted in Tier III cities.

• World over, companies like Saint Gobain, Honeywell, Schneider, Philips have put forward ambitious commit-ments to decarbonize16. The green building materials market in India is expected to grow by 13% over the next 5 years according to Global Green Buildings Material Markets 2015-2019 report. The next few years are likely to witness unprecedented innovations in Green Building design and materials. With 2/3rd of the buildings that will exist in India by 2030 yet to be built, there is an enormous opportunity for the green building market in India.

• On the implementation side, for green buildings to be truly successful in India, it is imperative to establish a strong post construction monitoring system.

Way Forward



15 climateaction2020.unfccc.int/spm/chapter-ii/ - Referred in May 201616 World Green Building Trends, 2016* Gigawatt

Emerging Trends: Green Construction TechniquesGlass Fibre Reinforced Gypsum (GFRG) Panel Building System17

Technology• Glass Fibre Reinforced Gypsum (GFRG) panel (Rapid Wall

Panel) is made up of calcined gypsum plaster reinforced with glass fibres

• The panel is of 124 mm thickness, 12 m long and 3.0 m height

• Contains cavities that may be unfilled, partially filled or fully filled with reinforced concrete as per structural requirement

• GFRG panel can be used as in fills for load bearing as well as framed structures

• Micro beams and RCC screed can be used as floor/ roof slab

• Suitable for low rise to high rise structures

Advantages • Green Technology: Makes use of industrial waste

gypsum, does not need any plastering, uses less cement, sand, steel and water than conventional building materi-als.

• Reduced built up area: Panels being only 124 mm thick, building can achieve more efficiency compared to conventional buildings.

• Versatility: Panels can be used not only as walls but also as floors, roofs and staircase

• Speed of construction is relatively faster• Lightness of structures bringing safety against earth-

quake forces

Limitations • The shorter span of slab (floor/ roof ) should be restricted

to maximum of 5.0 m• The system is ideal if the same floor/ roof is replicated for

all floors in multi storeyed structure• The panels are not suitable for curved walls or domes. In

case it is essential, use masonry/ concrete for that partic-ular area.

• The electrical/ plumbing system should be such that most of the pipes go through the cavities

Key Projects • Utility building for Konark Railways at Madgao, South

Goa• Residential building at RCF Mumbai

Figure 1: Glass Fibre Reinforced Gypsum

Figure 2: Placing the GFRG panels

Figure 3: For superstructure-beams are cast all around the floor

Figure 4: 30/40 house constructed in 28 days by GFRG Panels



17 Source: Compendium of prospective emering technologies for mass housing; MHUPA, GOI

Monolithic Concrete Construction System using Aluminium Form work18

Technology• All walls, floors, slabs, columns, beams, stairs together

with door and window opening are cast in place mono-lithically using concrete in one operation

• The specially custom designed modular framework made of light weight Aluminium

• Suitable for low rise to high rise structures• Thickness of the wall is generally 100 mm with the

centrally placed reinforcement hence adequate cover is likely to be maintained

Advantages• Durability• Economy of scale depends upon the volume of work and

number of repetition of the formwork. To achieve econo-my, minimum 100 repetitions are desirable.

• Rapid construction of multiple/ mass scale units of repet-itive type

• Flexible in design• Ease of fixing services: All electric and plumbing fixtures,

lines have to be pre-planned and placed appropriately before pouring concrete in RC walls & slabs. Post construction alternation is not desirable

• Acoustic: Average sound reduction for 100 mm concrete is ≥ 45db,refers reasonable acoustic insulation

Limitations• Thermal behaviour of structure: 100 mm thick RCC walls

and slab has high thermal transmittance hence proper heat insulation is recommended

• Time consumed for initiation of work like manufacturing of custom designed is more

• Post construction alterations are difficult• All the service lines are to be pre planned• For very small project of less than 500 units, this system

may not prove to be economical

Key Projects• Houses in Bangalore for Karnataka Slum Development

Board• Houses in Bangalore for BDA

Figure 1: Formwork made of light weight Aluminium

Figure 2: Floors, walls and stairs are cast in place monolithically

Figure 3: Suitable for low to high rise structures



18 Source: Compendium of prospective emering technologies for mass housing; MHUPA, GOI

Innovative heating, cooling and lighting systems adopted in

Green Certi�ed Buildings across India.

Solar Air Conditioninga

• The air in the building is controlled or conditioned by

passive solar, solar thermal energy conversion and

photovoltaic conversion in which sunlight is converted to

electricity.

• Key projects: Turbo Energy Limited (Chennai),

CII-Sohrabji Godrej Green Business Centre (Hyderabad)

Chilled Beamb

• Type of passive cooling system

• Chilled beam handles SENSIBLE and LATENT loads

separately

• Sensible load (fresh air is passed into the chilled beams)

• Pay back period for chilled beams is 3 years

• Key project: Grundfos Pumps, Chennai

Radiant Heating and Coolingc

• Concrete core tempering – using structural system

• Radiant cooling technology where a temperature-con-

trolled surface cools indoor temperatures by removing

sensible heat and more than half of the heat transfer

occurs through thermal radiation

• Reduce the operating costs by approx. 6-12%

• Key projects: Grundfos Pumps (Chennai) and Infosys

Pocharam Campus (Hyderabad)

Green and Solar Reflectance Index roofd

• A green roof is a roof of a building that is partially or

completely covered with vegetation and soil that is

planted over the water proofing membrane

• The buildings of roof covered with vegetation have

created artificially altered surfaces by high thermal

reflectance and high thermal emitting

• Key projects: Terrace garden at Hotel Leela Palace (Delhi)

and CII- Godrej GBC in Hyderabad



Electricity

Photovoltaic Panels

Sunlight

Vapor Compression ChillerComfortablyCool Building

Lighting controls: Occulux sensors, Daylight sensorse

• Digital occulux sensor would dim-up and dim down the

lights based on occupancy and daylight availability

• Use of day lighting and better lamps for more efficiency

and low height partitions (office buildings)

• Key projects: RMZ Millenia Business Park (Chennai),

Suzlon One Earth (Pune)

Wind Hybrid Solar Systemf

• Solar / wind hybrid system where solar and wind power

production is used together so that the reliability of the

system is enhanced.

• The size of battery storage can be reduced slightly as

there is less reliance on one method of power produc-

tion

• Key project: Suzlon One Earth

High Performance Envelopeg

• High performance envelope includes cavity walls which

has two skins of bricks with a hollow space in between

which helps in slowly drawing rainwater or even humidity

into the wall.

• Double glazing glasses used to reduce sound and heat

• Key projects: ITC Royal Gardenia (Bangalore) and Infosys

Limited (Mysore)



Old luminaire, T8 Modern luminaire, T5Modern luminaire, T5

DimmingDaylight sensor

Modern luminaire, T5Dimming

Daylight sensorPresence sensor

100%

-42%

- 71%

-82%

Presence sensor

Daylight sensor

Dimming

Ene

rgy

usag

e

a http://www.usgbc-ncc.org/storage/documents/Presentations/SVB/2011-7-12_solar_thermal_sargon_ishaya.pdfb http://docplayer.net/14205178-Green-building-innovative-technologies.htmlc http://dir.indiamart.com/impcat/radiant-heating-systems.htmld http://www.greenroofs.com/archives/energy_editor.htme http://www.auralight.com/wp-content/uploads/2012/10/LMS-brochure_LowRes_INT.pdff http://www.swelectes.com/solarhybrid_ups_solution.htmlg http://autospec.co.za/productmedia/isoboard/product/apps/cavitywall/cavity_wall.htm

Green Building Features:Architectural

• High performance glasses DGU’s (double glazing units)

used in façade system to achieve less thermal transmis-

sion and better acoustic properties.

• Façade is treated in such a way that the shading devices

are provided to reduce the use of air conditioners.

• 85% of the external surface is glass which increases light

transmission.

• 4.05m floor to floor height to harvest maximum natural

light.

HVAC

• Heat recovery wheels to pre cool the fresh air.

• Combination of water cooled and air cooled chillers to

achieve better energy efficiency.

• High performance chillers to achieve better IKW rating.

• Use of thermal energy storage system to reduce the

power consumption by running the chillers at night.

• Basement ventilation system to maintain air quality in the

basement.

• BTU meters to monitor the energy consumption for

cooling at each floor level – minimizes the wastage of

chilled water.

Electrical

• Car charging points in the basement.

• High efficiency low loss dry type transformers.

• Individual energy meters for tenants to monitor the

consumption of power at each stage.

PHE

• Low flow sanitary fixtures (2/4 LPF) and (1LPF for urinals).

• Sewage treatment plant for reusing water for flushing.

• Roof top rain water harvesting and reuse for domestic

purpose.

• Rain water harvesting pit to recharge the ground water

and use of treated water for landscaping.

Recycling

• Organic waste converter and separate e-waste storage

facility – e-waste will be recycled by the government

authorized vendors.

• Sludge from STP is used as manure for green landscape

During Construction

• Top soil being removed and reused for landscaping.

• Sedimentation pit to avoid soil erosion in excavated

areas.

Case Study 1:Project Details:

Name of Project: Embassy Tech Village (Formerly known as Vrindavan Tech Village)

Development Managers: Assetz Property Group

Project Type: Office Building

Land Area: 106 acres

Built Up Area: 8.0 million sqft

Certi�cation: Platinum Rating

Embassy Tech Village



Green Building Features:Energy Efficient Methods

• Efficient centralised cooling system making use of

recycled water

• Solar concentrators produce steam for majority of hotels

cooking needs

• Remote wind farm which supplies more than sufficient

renewable electricity for the hotel

• LED and CFL lights with double glazed windows used for

interior and energy efficient fixtures provide external

lighting

• Green roof is another method used to cut down cooling

costs.

Landscape Features

• There is a lotus pavilion with a water body and green

vertical walls that reduce the need for air conditioning

Water Usage & Saving and Solid Waste Management

• Rainwater harvesting and grey water recycling system

used to flush toilets, for cooling towers and irrigation of

landscaping

• Black water treated on site

• Flushes used recycled water, taps & showers use less

water than usual

• Waster segregation and composting also taken care

Case Study 2:

Project Details:

Name of Project: ITC Royal Gardenia, Bangalore

Project Type: Hotel

Number of Keys: 292

Built Up Area: 7,24,595 sqft

Star Rating: 5 star

Certi�cation: Platinum Rating

ITC Royal Gardenia Bangalore



Green Building Features:Energy Efficient Methods

• Naturally lit homes with full length windows offer over

50% more daylight

• Optimum wind planning with 12-13 air changes per

room

• Energy Efficient Fittings like timer automated lighting,

solar power & CFL for common areas and LED for

outdoor lighting are used

Low Maintenance Landscape

• Over 30% soil cover retained

• Minimised surface heat reduction

• All Landscape maintained through recycled water

• Native and naturalised trees

• Water sensitive plant groups

Water Usage & Saving and Solid Waste Management

• Rain water drainage

• Recharge pits and porous block

• Water meter monitoring system

• Water efficient fixtures, dual flushing and dual plumbing

• Solid Waste Management: segregation at source into

organic and inorganic waste

• Organic waste to compost and is used in gardens/land-

scaping and can be sold to farmers

• Inorganic waste disposed through authorised reseller

Case Study 3:

Project Details:

Name of Project: Assetz 630 East, Bangalore

Project Type: Apartment

Land Area: 17.7 acres

Open Space: 60%

Number of Units: 1,608

Con�guration: 1, 2 & 3 BHK

Unit Size: 691 - 1,157 sq ft

Certi�cation: Pre-certified Gold

Master Plan, Assetz 630 East



Disclaimer:

This report contains information available to the public and has been relied upon by Vestian Global Workplace Services on the basis that it is accurate.

Neither Vestian nor Assetz Property Group (or its subsidiaries and affiliates) accept any responsibility if this should prove not to be the case. No warranty

or representation, expressed or implied is made to the accuracy or completeness of the information contained herein, and the same is submitted subject

to errors, omissions, change of price, rental or other conditions and withdrawal without notice. Images and artistic impressions of Assetz & other projects

showcased in this Report are for illustrative purposes only.

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