June 2016

SUSTAINABLE CONSTRUCTION PRACTICES IN INDIA A Vestian Report in association with Assetz

SUSTAINABLE SUSTAINABLE CONSTRUCTION CONSTRUCTION PRACTICES PRACTICES IN IN INDIA INDIA

INDEX

5

Executive Summary

Page 3

Introduction

Page 4

The Concept of Green Buildings

Page 5

Policy Initiatives for Green Buildings in India

Page 7

Green Building Rating

Page 8

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

Page 22

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SUSTAINABLE CONSTRUCTION PRACTICES IN INDIA

Executive Summary We live in a modern, consumerist and largely urban world

share of green buildings at 20% followed by Pune, Bangalore

consuming more energy and resources than we can

and Chennai at 10%, 9% and 9% respectively. There are a

replenish. Increasing global population, urbanization, rising

large number of green certified buildings in Tier III cities also.

income level and the resultant increase in consumption has

Demand from occupiers with green mandates, global

resulted in unprecedented environmental damage shifting

investors as well as National Environmental Regulations and

the global focus towards sustainable development.

policies are the key drivers for green commercial spaces. Commercial spaces account for 56% of the certified green

Buildings worldwide consume 30% of the planet’s energy

spaces in India. Green certified residential buildings account

and 40% of its resources generating about 40% of the waste

for only 13.22% of the certified green buildings in India and

and emitting 35% of the green house gases (GHG). The

are yet to gain prominence due to a lack of a structured post

Indian Real Estate sector is growing at a CAGR of 11.2%

construction performance monitoring system highlighting

resulting in an enormous demand for energy, water and

the benefits of going green. Social responsibility and

other resources. However, an overall energy shortage in the

reduced operating costs are the key drivers for green hotels

country has made it imperative for developers and space

in India.

occupiers to consider constructing and occupying green buildings.

Initial construction cost for green buildings are higher by 2%-12% while the benefits are significant in terms of reduced

A green building is defined as one which uses less water,

energy and water consumption, waste generation and

optimizes energy efficiency, conserves natural resources,

carbon emission bringing down the operating expenses by

generates less waste and provides healthier living spaces for

30%. These buildings also achieve rental premium of 2% and

its occupants throughout its life cycle.

are occupied by Fortune 500 tenants.

Governments across the world have initiated policies to

Globally, the outlook for green buildings is positive with the

address country specific barriers to the propagation of green

implementation

buildings. Globally, green rating is emerging as a popular

innovations are expected in green building design and

tool to drive the construction sector to adopt sustainable

materials over the next 3-5 years. The green building market

practices, often preceding regulatory mandates and helps

in India is in a nascent stage but by 2025 green building

defining standards. In India, IGBC and GRIHA are the two

standards are expected to be incorporated in the building

popular green rating systems. These rating systems have

codes making them the new standard for the construction

been conceived to suit the climatic conditions and aligned

industry. The Smart City initiative is also likely have a positive

with national priorities. Based on the area of projects

impact on the green building movement combining smart

registered, IGBC accounts for close to 99% of the market.

technology and green construction practices. On the

of

Paris

Agreement.

Unprecedented

implementation side, for green buildings to be truly India has the second largest registered green footprint in the

successful in India, it is imperative to establish a strong post

world next only to USA. Mumbai accounts for the largest

construction monitoring system.

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SUSTAINABLE CONSTRUCTION PRACTICES IN INDIA

Introduction We live in a modern, consumerist and largely urban world1 consuming more energy and resources than we can replen-

Environmental

ish. Historically, man’s need for technological and economic advancement has resulted in environmental degradation.

A Viable Natural Environment

Today, increasing global population, urbanization, rising Sustainable Economic Development

Sustainable Natural & Build Environment

Nurtuirng Community

Sustainable Social Environment

adding a lot of pressure on precious natural resources. The concept of sustainable development was first defined by

Sustainable Development Social

income level and resultant increase in consumption are

the United Nations in the 1987 Brundtland Commission Economic

Report as “developments that meet the needs of the

Sufficient Economy

generations to meet their own needs”.

present without compromising the ability of the future

Sustainability and sustainable development focus on balancing the fine line between our competing needs our Source: conceptdraw.com

need to move forward technologically and economically, and the need to protect the environment in which we live2.

1 www.environmentalscience.org, May 2016 2 ibid

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SUSTAINABLE CONSTRUCTION PRACTICES IN INDIA

The Concept of Green Buildings Buildings world wide consume

Starting in the 1930s, new building technologies began to transform the urban landscape. The advent of air-condition-

30% of Energy

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

25% of Water

as International Style “Glass Box” became the design icon of most American cities3, which was later emulated by cities around the world.

40% of Resources

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

and generate

between 10 and 40 per cent of the solid waste streams in most countries. The manufacture of many of the materials

40% of Waste

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

35% of GHG Emissions

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

Source: United Nations Environment Program, 2009

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 2016 6 http://www.ibef.org/industry/real-estate-india.aspx 7 Bassi, S., “Implementing Energy Efficiency in Buildings”, UNDP-GEF_BEE

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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”.

SUSTAINABLE CONSTRUCTION PRACTICES IN INDIA

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:

MINIMIZE WASTE & MAXIMIZE REUSE  Use of fewer and more durable

PROMOTE HEALTH & WELL BEING OF INHABITANTS  Designing for natural light, ventilation and exterior views

 Designing for acoustics and sound insulation  Ensuring comfort and well being of users

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

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

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

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

ENERGY CONSERVATION OBJECTIVES OF GREEN BUILDINGS

 

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

8 Source: IGBC, May 2016

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Policy Initiatives for Green Buildings in India 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 Table 1: Evolution of Green Building Movement Stage 1 Energy Efficient

Particulars

Buildings  Understanding the 

Focus Areas

 

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

Regulations

Type of Buildings

Stage 2

Stage 3

High-performance Environmentally Responsive Smart Green Buildings

 Buildings combine green and smart technologies

Net Zero Energy Buildings  Net zero energy



 Cities and states demand 

building performance disclosure Green buildings are the new standard for Class A buildings

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

Stage 4 Carbon Neutral Buildings & Eco-Districts  Carbon neutral buildings are buildings where not only the operating emissions are zero but the embodied energy is neutral

 Countries adopt reduced

 Government (mostly

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

state and local) set rigorous standards for green city initiative

 Residential & commercial

 Focus not only on new

 Currently these have

 Not just buildings are

 India and most emerging

 Developed economies in

 Governments around the

 There are very few

new construction

economies

Presence

construction but retrofitting existing buildings to greener standards

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

been achieved in individual houses and smaller commercial buildings. developed world are focusing on achieving marketable net zero energy residential and commercial buildings by 2025.

carbon neutral but entire neighborhoods, cities and regions achieve zero emissions. carbon neutral buildings around the world. Several pilot eco-districts have been selected in cities like Portland, Oregon and SanFrancisco in California, USA

Source: Vestian Research

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SUSTAINABLE CONSTRUCTION PRACTICES IN INDIA

Green Building Rating 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 rating systems around the world

Europe  European Environment Agency Rating

Canada  Leadership in Energy & Environmental Design - Canada (LEED-Canada)

Tiwan  Ecology, Energy Saving, Waste Reduction and Health (EEWH) (Taiwan)

South Korea United States  Leadership in Energy & Environmental Design (LEED-United States)  The Green Globe Rating System  Energy Star (United States Environment Protection Agency)

 Green Building Council (Korea)

Japan  Comprehensive Assessment System for Building Environment Efficiency (CASBEE)

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

United Kingdom  Building Research Environment Assessment Method Consultancy (BREEAM)

Philippines  Philippine Green Building Council

Singapore  BCA Green Mark

India  GRIHA  Indian Green Building Council (IGBC)

Australia  Green Star  Australia Greenhouse Building Rating (AGBR)

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

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SUSTAINABLE CONSTRUCTION PRACTICES IN INDIA

Green Building Rating Indian Green Building Council - LEED (Leadership in Energy and Environmental Design) IGBC, part of the CII with the support of all stake-holders has

IGBC has programmes that rate under the following categories:

launched 13 indegenous green building rating systems to suit five climatic zones of India and are aligned with national

• IGBC Green New Buildings

priorities. IGBC rating system is based on the performance of a

• IGBC Green Existing Buildings

building in five key areas namely: sustainable site development,

• IGBC Green Homes

energy efficiency, water savings, material selection and indoor

• IGBC Green Schools

environmental quality.

• 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

Table 1: LEED India Certification Levels Certification Level

Owner-occupied Buildings

Tenant-occupied Buildings

Recognition

Certified

50 - 59

50 - 59

Good Practicies

Silver

60 - 69

60 - 69

Best Practicies

Gold

70 - 79

70 - 79

Outstanding Performance

Platinum

80 - 89

80 - 89

National Excellence

Super Platinum

90 - 100

90 - 100

Global Leadership

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) 9

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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

SUSTAINABLE CONSTRUCTION PRACTICES IN INDIA

Market Overview For Green Buildings10

Figure 1: Projects registered under IGBC in India

12

Green Building Footprint in India

of the total green building market in India. • According to the IGBC, the total registered green footprint

In billion sqft

• Both IGBC and GRIHA provide green building certification in India. However, the market share of GRIHA is only 1%

10

10 8 CAGR - 30%

6

3.59

4

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

2

next only to USA which has 13.8 billion sqft of LEED

0

1.52

2013

certified spaces.

2016 2016

2013

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

2022 (projected) 2022 (projected) Source: IGBC, 2016

grow to 10 billion sqft in 2022 from the current 3.59 billion sqft. (Note: Area mentioned is registered area and

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

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

GRIHA 1%

size is growing at a rate (CAGR) of 30%. • Only 7.1% of the projects registered are certified.

IGBC 99%

Source: Vestian Research, 2016 * Based on registered area

Figure 3: City Wise Distribution of Certified Green Buildings

City Wise Distribution •

In terms of city level distribution, Mumbai has the

Mumbai

Others

maximum number of green buildings registered followed

21%

20%

by Pune and Bangalore. • Green rating is not just restricted to projects in Tier I and

Gurgaon

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

4% Ahmedabad d

Indore, Nagpur and Coimbatore as well. Most buildings

Kolkata

going for green rating in Tier III cities include hotels, public and institutional buildings.

City Wise Distribution

4%

4%

10%

Bangalore Bang

New Delhi elhi

9% 9

5%

Hyderabad y erabad yd 7%

Noida 7%

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

Pune

Chennaii Ch 9%

Source: IGBC, 2016

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Demand from occupiers and global investors for green spaces & national environmental regulations and policies are the key drivers for green commercial spaces. • 56% of the buildings certified by IGBC are commercial

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

buildings. Corporate tenants both Multi-National Corporations (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

Others 17%

Retail 2% Health Care 2%

Educational Building 5%

spaces around the world expect standards similar to

IGBC Green Certified Projects

ity Hospitality 6% dential Residential 3% 13%

buildings in the developed world, thereby pushing the sustainability standards for commercial buildings in developing nations.

Commercial 56%

The Energy Conservation Act 2002, has mandated Source: IGBC, 2016

buildings to operate more efficiently. Environmental

* Based on number of certified projects

Impact Assessments are mandatory for all buildings above 20,000 sqm.

Figure 5: Green Certified Commercial office space in Bangalore

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.

160

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

140

In most developing nations, where green building certified green buildings are owned by corporate owner occupants and government agencies . However, in 11

Bangalore, strong demand from corporate occupiers and

120 Area in million sqft

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

100 80 60 40

investors has resulted in a positive response from proper-

20

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

0

green certified office buildings in the city are developed by third party developers. The share of captive corporate owner occupants is only 11%.

Captive

Non Captive Total Commercial Stock

Green Certified

Source: Vetsian Research, 2016

Key occupiers prefering sustainable office spaces include Microsoft, Google, Cisco, Honeywell, Shell & Texas Instruments. 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.

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11 Nelson A. J., Globalization and Global Trends in Green Real Estate Investment, RREEF Research, 2008 12 Vestian Research, 2016

SUSTAINABLE CONSTRUCTION PRACTICES IN INDIA

Green certified residential developments are yet to gain prominence due to a lack of a structured post construction performance monitoring system highlighting the benefits of going green. •

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

the absence of a performance monitoring system, sever-

residential projects. This percentage is expected to

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

increase significantly over the next 3-5 years on account

actually implement the green initiatives on ground.

of the number of projects registered with IGBC and are currently in the process of certification.

•

The Hospitality sector has been one of the first sectors to incorporate green construction practices and energy &

• Government regulations in India have mostly concentrat-

water conservation principles in India. The Orchid Hotel

ed on commercial buildings till date, as they are the

in Mumbai was the first Ecotel certified hotel established

largest consumers of energy due to the use of HVAC

in 1997.

systems and 24 hour power back up. Residential properties, except for 2% of the stock which falls in the

Figure 6: Rating Process and Timeline

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

Registration with IGBC

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

Preliminary Submission Third Party assessors will review and revert with queries

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

30 days for evaluation Time taken to revert with supporting documents depends on the developer

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

Final Submission

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

30 days for evaluation

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-

Pre-certification

mance monitoring system post construction for an official assessment of the intended and actual benefits of green certified buildings.

Status update once in 6 months during construction

operating costs accrue to the buyers rather than the developers. Therefore, several state governments are trying to incentivise the development of green buildings

Final Certification Post evaluation of the project after construction completion

by providing additional FSI to developers. However, in Vestian-Assetz Report

Source: IGBC, 2016

• Moreover, in residential buildings the benefits of reduced

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SUSTAINABLE CONSTRUCTION PRACTICES IN INDIA

Social responsibility and reduced operating costs are the key drivers for green hotels in India. 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 premium 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.

Table 1: Sustainability programs adopted by various hotel operators Name of Hotel Operator

Sustainability Programme

Marriott Hotels

LEED Volume programme

Alila Hotels & Resorts Pvt Ltd

Earth Check affiliation and benchmarking

Starwood Hotels

Global citizenship and make a green choice

Movenpick Hotels & Resorts

Green Globe certification

Taj Group

EARTH (Environment Awareness and Renewal at Taj Hotels)

ITC Group

WelcomEnviron

Accor Hotels

Planet 21

InterContinental Hotels Group

IHG Green Engage System Source: Vestian Research, 2016

• Others Other than commercial, residential and hotel buildings, Government buildings, convention centres, airports, schools, institutional buildings hospitals, metros, factories and townships are also going for green certification.

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Industry Survey Results13 Figure 5 : Green share of building project activity 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

37% 3

years and emerging economies like Brazil, India, Saudi

Green Share

Arabia and South Africa will be engines of green growth in the next three years. •

63% %

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

Green Share

Non Green Share

the respondents already involved in green buildings. This is expected to strengthen further over the next three

Figure 5: Levels of Green Building Activity

years. •

New commercial and new high rise residential are

5%

the key sector with highest anticipated activity. •

4%

Environmental regulation is the key triggers for new

20%

green buildings in India as against client demand which

16%

is the key trigger globally. •

Social reasons for building green included creating a

29%

domestic economy. •

14%

Levels

52%

sense of community and supporting growth of

5%

31% 24 24%

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.

•

Inner circle represents 2015 values Outer circle represents 2018 projection

According to survey respondents, the payback period was reported to be 4-5 years which is lower than the

Exploring (no green involvement)

1% to 15% green projects

16% to 30% green projects

31% to 60% green projects

More than 60% green projects

global average suggesting that construction costs are lower than other countries in the survey.

Figure 6: Top triggers driving future building activities in India

Table 1: LEED India Certification Levels 60%

New Green Building Decreased operating costs over one year Decreased operating costs over five years

10%

Green Retrofit 11%

52% 50% 40%

investments (years)

28%

20%

15%

16%

4

5

24% 25%

22%

20%

23%

15%

10% 0%

Payback time for green

35%

30%

5% Environment Regulations

Healthier Neighborhood

Right things to do

India

Employee Recruitment

Lower Operating Cost

Global

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.

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Cost

Cost Benefit Analysis for Green Buildings 2%-12%

25%-30%

Savings in energy consumption

20%-30%

Savings in water consumption

50%

Less waste generation

35%

Reduced carbon emission

1.9%-2%

Benefits

Construction cost premium

Rental premiums achieved in commercial buildings

30%

Reduction in building’s operating expenses

40%

Increase in office space utilization Almost 100% of the buildings occupied by Fortune 500 clients Source: IGBC, 2016

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SUSTAINABLE CONSTRUCTION PRACTICES IN INDIA

Tax Incentives for Green Buildings Government of India



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.

State Government/ Local Bodies



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



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

rebate on property tax (Pune and Hyderabad). 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.

Financial Institutions



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.

630 East

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

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Way Forward •

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

•

New buildings both commercial and high rise residential

mandates and government regulations. 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

•

World over, companies like Saint Gobain, Honeywell,

I and II cities but will be adopted in Tier III cities. Schneider, Philips have put forward ambitious commitments 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. • 15 climateaction2020.unfccc.int/spm/chapter-ii/ - Referred in May 2016 16 World Green Building Trends, 2016 * Gigawatt

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

SUSTAINABLE CONSTRUCTION PRACTICES IN INDIA

Emerging Trends: Green Construction Techniques Glass Fibre Reinforced Gypsum (GFRG) Panel Building System17 Technology •

Glass Fibre Reinforced Gypsum (GFRG) panel (Rapid Wall

Figure 1: Glass Fibre Reinforced Gypsum

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

•

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

•

Suitable for low rise to high rise structures

as framed structures slab

Figure 2: Placing the GFRG panels

Advantages •

Green Technology: Makes use of industrial waste gypsum, does not need any plastering, uses less cement, sand, steel and water than conventional building materials.

•

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

•

Speed of construction is relatively faster

•

Lightness of structures bringing safety against earth-

as floors, roofs and staircase

Figure 3: For superstructurebeams are cast all around the floor

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 particular area.

•

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

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

Key Projects •

Utility building for Konark Railways at Madgao, South

•

Residential building at RCF Mumbai

Goa

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

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SUSTAINABLE CONSTRUCTION PRACTICES IN INDIA

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-

Figure 1: Formwork made of light weight Aluminium

lithically using concrete in one operation •

The specially custom designed modular framework

•

Suitable for low rise to high rise structures

•

Thickness of the wall is generally 100 mm with the

made of light weight Aluminium

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 economy, minimum 100 repetitions are desirable.

•

Rapid construction of multiple/ mass scale units of repet-

•

Flexible in design

•

Ease of fixing services: All electric and plumbing fixtures,

itive type

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

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

•

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

of custom designed is more

may not prove to be economical

Key Projects •

Houses in Bangalore for Karnataka Slum Development

•

Houses in Bangalore for BDA

Board

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

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Vestian-Assetz Report

Figure 3: Suitable for low to high rise structures

SUSTAINABLE CONSTRUCTION PRACTICES IN INDIA

Innovative heating, cooling and lighting systems adopted in Green Certified Buildings across India. Solar Air Conditioninga •

The air in the building is controlled or conditioned by passive solar, solar thermal energy conversion and

Sunlight

photovoltaic conversion in which sunlight is converted to

Photovoltaic Panels

electricity. •

Key

projects:

Turbo

Energy

Limited

(Chennai),

Electricity

CII-Sohrabji Godrej Green Business Centre (Hyderabad) Comfortably Cool Building

Vapor Compression Chiller

Chilled Beamb •

Type of passive cooling system

•

Chilled beam handles SENSIBLE and LATENT loads

•

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

•

Pay back period for chilled beams is 3 years

•

Key project: Grundfos Pumps, Chennai

separately

Radiant Heating and Coolingc •

Concrete core tempering – using structural system

•

Radiant cooling technology where a temperature-controlled 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

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SUSTAINABLE CONSTRUCTION PRACTICES IN INDIA

Lighting controls: Occulux sensors, Daylight sensorse

Daylight sensor

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

Presence sensor Energy usage

•

Dimming

100%

-42% - 71%

and low height partitions (office buildings) •

-82%

Key projects: RMZ Millenia Business Park (Chennai), Suzlon One Earth (Pune)

Old luminaire, T8

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 production

•

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)

a b c d e f g

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

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Modern luminaire, T5

Modern luminaire, T5 Dimming Daylight sensor

Modern luminaire, T5 Dimming Daylight sensor Presence sensor

SUSTAINABLE CONSTRUCTION PRACTICES IN INDIA

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 Certification: Platinum Rating Green Building Features:

Electrical

Architectural

•

•

High performance glasses DGU’s (double glazing units)

•

High efficiency low loss dry type transformers.

used in façade system to achieve less thermal transmis-

•

Individual energy meters for tenants to monitor the

sion and better acoustic properties. • • •

Car charging points in the basement.

consumption of power at each stage.

Façade is treated in such a way that the shading devices are provided to reduce the use of air conditioners.

PHE

85% of the external surface is glass which increases light

•

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

transmission.

•

Sewage treatment plant for reusing water for flushing.

4.05m floor to floor height to harvest maximum natural

•

Roof top rain water harvesting and reuse for domestic

light.

purpose. •

HVAC

Rain water harvesting pit to recharge the ground water and use of treated water for landscaping.

•

Heat recovery wheels to pre cool the fresh air.

•

Combination of water cooled and air cooled chillers to

Recycling

achieve better energy efficiency.

•

Organic waste converter and separate e-waste storage

•

High performance chillers to achieve better IKW rating.

facility – e-waste will be recycled by the government

•

Use of thermal energy storage system to reduce the

authorized vendors.

power consumption by running the chillers at night. • •

•

Sludge from STP is used as manure for green landscape

Basement ventilation system to maintain air quality in the basement.

During Construction

BTU meters to monitor the energy consumption for

•

Top soil being removed and reused for landscaping.

cooling at each floor level – minimizes the wastage of

•

Sedimentation pit to avoid soil erosion in excavated

chilled water.

areas. Embassy Tech Village

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SUSTAINABLE CONSTRUCTION PRACTICES IN INDIA

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 Certification: Platinum Rating Green Building Features:

Landscape Features

Energy Efficient Methods

•

•

Efficient centralised cooling system making use of

There is a lotus pavilion with a water body and green vertical walls that reduce the need for air conditioning

recycled water • • •

Solar concentrators produce steam for majority of hotels

Water Usage & Saving and Solid Waste Management

cooking needs

•

Remote wind farm which supplies more than sufficient

used to flush toilets, for cooling towers and irrigation of

renewable electricity for the hotel

landscaping

LED and CFL lights with double glazed windows used for

•

Black water treated on site

interior and energy efficient fixtures provide external

•

Flushes used recycled water, taps & showers use less

•

Waster segregation and composting also taken care

lighting •

Rainwater harvesting and grey water recycling system

water than usual

Green roof is another method used to cut down cooling costs.

ITC Royal Gardenia Bangalore

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SUSTAINABLE CONSTRUCTION PRACTICES IN INDIA

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 Configuration: 1, 2 & 3 BHK Unit Size: 691 - 1,157 sq ft Certification: Pre-certified Gold Green Building Features:

Water Usage & Saving and Solid Waste Management

Energy Efficient Methods

•

Rain water drainage

Naturally lit homes with full length windows offer over

•

Recharge pits and porous block

50% more daylight

•

Water meter monitoring system

Optimum wind planning with 12-13 air changes per

•

Water efficient fixtures, dual flushing and dual plumbing

room

•

Solid Waste Management: segregation at source into

• • •

Energy Efficient Fittings like timer automated lighting, solar power & CFL for common areas and LED for

organic and inorganic waste •

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

•

Inorganic waste disposed through authorised reseller

outdoor lighting are used

scaping and can be sold to farmers

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

Master Plan, Assetz 630 East Vestian-Assetz Report

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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.