Town and Country Planning Minister, Vijai Sardesai, has time and again said that just because builders are getting extra floor-area-ratio (FAR) in Uttar-Pradesh, Punjab and Haryana to build green buildings does not mean that they should expect the same from the Goa government as well.
This brings us to a question: Is giving extra FAR the only way to encourage green buildings? We all need green buildings, which consume less power, less water and are more environmentally sensitive.
But, builders say that it takes more money to build a green building. Therefore, other states allow them higher FAR so that they can build more floors, which will help them in making a better return on their investment on a project.
Sardesai’s comments show that he is against giving extra FAR to builders for making green buildings. What other steps can the state government take to incentivise green buildings, then? We all know that the real estate sector pays a hefty tax to the government. Perhaps, the government can consider giving a rebate on taxes if a builder makes a green building.
Very few states impose an infrastructure tax on builders like Goa does. This is because providing infrastructure like power, water and roads is considered a basic duty of the state government. Perhaps, Goa government can consider giving a rebate on the infrastructure tax to the builders.
Builders have to pay even stamp duty and registration fee to the government. Concessions on these levies could also be considered to encourage green buildings. But, the question is: Will the state government do so?
Giving any kind of tax concession would mean loss of revenue for the government. Will the government take a cut on its revenue to encourage the concept of green buildings? The larger mindset in India is to tax the builders’ community. Will Goa government adopt a different mindset?
Ever since the roll out of Goods-and-Services-Tax (GST), the state government’s tax collections are struggling to grow. In such a situation, giving tax incentives for green buildings with immediate effect might just be extremely difficult. But, in the long run, tax incentives can be considered as a way to promote the cause of green buildings.
Sardesai is right in not paying heed to the demand of higher FAR. If today, the government gives higher FAR for green buildings, tomorrow some other section will demand higher FAR for another cause.
Traditionally, Goans have lived more in sync with nature than people in other states of India. Therefore, it will be in keeping with the tradition and history if more FAR is not given for green buildings. This is because more FAR will mean more floors and that will reduce Goa to a concrete jungle.
