"GOOD NEWS FOR THE GREEN BUILDERS"
Tax breaks may be granted to Real estate developers constructing energy-efficient (green) buildings in the coming Budget. If the buildings meet the “green”
standard, a part of the builders’ construction cost would be set off against their income tax liability.
Establishment of a grading system for buildings by The Energy & Resources Institute (Teri) is already in the process . According to the proposal, the higher the rating, the greater will be the tax concessions for builders.
The proposal is being considered by the finance ministry. “The Energy Conservation Building Code is in the process of being implemented for new commercial, institutional and large-scale residential buildings. As soon as developers start abiding by the new code, they can avail of the tax breaks.
Green buildings save on operating costs by being energy and water efficient. For grading energy-efficient buildings, a group of experts evaluate the environmental performance of a building over its entire life-cycle by awarding points for meeting design and performance criteria.
The urban development ministry is also set to amend the National Building Code to include rating standards for energy-efficient buildings. The new building code is slated to be released in two months.