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Table 2.18: Financial Incentives Given by SBI for Green Home Loan
Product feature Values for SBI Green Home Loan
Margin 5% less than the margin stipulated for ordinary SBI home loan, subject to the
condition that the margin does not go below 15% under any condition
Interest rate 0.25% concession (Instead of 0.10% being offered presently); maximum
cumulative interest rate concession will be within the ceiling prescribed from time
to time (presently 0.25%)
Note: Concession shall not be applicable on the 8% interest rate under the SBI Happy Home Loan
Offer, nor the 8.5% and 9.25% rates under the SBI Special Loan Offer
Source: GRIHA (2012)
The Ministry of Environment and Forests (MoEF) in 2011 has given
special consideration to pre-certified LEED India and GRIHA projects
by having a separate queue for clearance. This is supposedly with the
assurance that green rating agencies have carried out the due diligence
of these project designs and will be accountable for the environmental
performance of such projects. However, pre-certification is only a pledge
and there is no legal provision for requiring the project proponents to
achieve the level of rating promised in the pre-certification application.
2.3.5 Demand Side Management 3.2
The Energy Conservation Act, 2001, provides the legal framework,
institutional, and regulatory mechanism for energy efficiency initiatives,
in India, at both the national and sub-national levels. The Act led to the
formation of the Bureau of Energy Efficiency (BEE) to implement the
provisions of the Act in the form of new policies on energy conservation
and energy efficiency. The State Energy Conservation Fund (SECF)
which is required to be constituted at the sub-national level was set up
under section 16 of the Energy Conservation Act with the objective of
promoting energy conservation and energy efficiency within the state.
SECF was established in the Eleventh Five-Year Plan with an outlay
of INR 66 crore and is continuing in the Twelfth Five-Year Plan with
a budget outlay of INR 50 crore. Till date, 26 states have constituted
SECF, out of which 16 have also provided matching contribution and
an amount of INR 82 crore has been disbursed under the SECF scheme
(MoP 2015).
Despite being technically and economically viable, certain Demand
Side Management (DSM) programmes do not get implemented due
to lack of adequate finance. Power utility companies in India are often
reluctant to undertake DSM measures because of the uncertain nature
of the outcomes and the difficulty in arranging necessary funding.
Chapter 2 Innovative Financing for Low Carbon Development 289
Product feature Values for SBI Green Home Loan
Margin 5% less than the margin stipulated for ordinary SBI home loan, subject to the
condition that the margin does not go below 15% under any condition
Interest rate 0.25% concession (Instead of 0.10% being offered presently); maximum
cumulative interest rate concession will be within the ceiling prescribed from time
to time (presently 0.25%)
Note: Concession shall not be applicable on the 8% interest rate under the SBI Happy Home Loan
Offer, nor the 8.5% and 9.25% rates under the SBI Special Loan Offer
Source: GRIHA (2012)
The Ministry of Environment and Forests (MoEF) in 2011 has given
special consideration to pre-certified LEED India and GRIHA projects
by having a separate queue for clearance. This is supposedly with the
assurance that green rating agencies have carried out the due diligence
of these project designs and will be accountable for the environmental
performance of such projects. However, pre-certification is only a pledge
and there is no legal provision for requiring the project proponents to
achieve the level of rating promised in the pre-certification application.
2.3.5 Demand Side Management 3.2
The Energy Conservation Act, 2001, provides the legal framework,
institutional, and regulatory mechanism for energy efficiency initiatives,
in India, at both the national and sub-national levels. The Act led to the
formation of the Bureau of Energy Efficiency (BEE) to implement the
provisions of the Act in the form of new policies on energy conservation
and energy efficiency. The State Energy Conservation Fund (SECF)
which is required to be constituted at the sub-national level was set up
under section 16 of the Energy Conservation Act with the objective of
promoting energy conservation and energy efficiency within the state.
SECF was established in the Eleventh Five-Year Plan with an outlay
of INR 66 crore and is continuing in the Twelfth Five-Year Plan with
a budget outlay of INR 50 crore. Till date, 26 states have constituted
SECF, out of which 16 have also provided matching contribution and
an amount of INR 82 crore has been disbursed under the SECF scheme
(MoP 2015).
Despite being technically and economically viable, certain Demand
Side Management (DSM) programmes do not get implemented due
to lack of adequate finance. Power utility companies in India are often
reluctant to undertake DSM measures because of the uncertain nature
of the outcomes and the difficulty in arranging necessary funding.
Chapter 2 Innovative Financing for Low Carbon Development 289
