How Delhi's Go-Green Move Will Trigger Construction Activity

The Chief Minister Arvind Kejriwal-led government in Delhi came out with a policy, announcing incentives and tax sops to promote green constructions in the national capital. Under the new policy, the government plans to make it mandatory for government and public institutions to install solar panels on their rooftops.

The Delhi Development Authority (DDA) has come out with draft regulations in this regard and proposes to extend special incentives such as higher floor area ratio (FAR) and a rebate in property tax, subject to compliance. 

It is to be noted that the main purpose of a green building is to reduce the water and energy cost and consumption. On an average, a green building can reduce about 40 per cent of energy and 25 per cent of water consumption. While reducing the cost of construction, a green building also helps keep the environment clean. 

According to DDA officials, the new move is expected to revive the saturated real estate market of Delhi. According to them, real estate developers in the national capital region (NCR) have been waiting for a move by the government that would trigger real estate activity in the national capital. The incentives like extra FAR will help the real estate developers to add more units and bridge the gap in the demand and supply. This initiative would give a boost to the development of affordable housing projects in Delhi, a real estate market where property prices have hit the roof and have gone out of the reach of the common man. 

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