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National Housing Bank (NHB) and French Development Agency (AFD) Expand Competitive Funding to Green and Affordable Housing Projects


National Housing Bank (NHB) and French Development Agency (AFD) Expand Competitive Funding to Green and Affordable Housing Projects

SUNREF Housing Programme India

NEW DELHI, Nov. 15, 2019 /PRNewswire/ -- The India's apex housing finance institution National Housing Bank (NHB), together with the French Development Agency (AFD) and the European Union (EU), today announced their commitment to expand allocation of resources in order to promote green and affordable housing projects, through the SUNREF India Housing Programme.

Under this programme, housing finance companies, banks and home buyers will have access to competitive funding opportunities to finance green and affordable housing projects. The programme will also provide stakeholders with training opportunities on various technical aspects (norms, planning and project design regarding green and affordable components).

A comprehensive approach based on NHB's experience.

The Programme includes a credit line of 100 million euros granted by AFD in order to provide the stakeholders with adequately priced resources in forms of loans. It also includes a subsidy of 12 million euros from the EU's Asia Investment Facility (AIF) that embraces a technical component (worth 3 million euros), and an investment incentive (worth 9 million euros) to reduce the loan cost for final borrowers. Out of the latter, up to 1 million euro will be used to support the cost incurred for housing projects' green label certifications.

Speaking at the occasion, Mr. S K Hota, Managing Director of National Housing Bank explained that "With nearly 70% of India's housing development lined up in the next decade itself, it is imperative that the environmental impact of construction is reduced. The SUNREF India programme not only encourages green housing through concessional funding but also supports the upgrade of technical knowledge and practices. I am confident our programme will serve as a catalyst in accelerating use of environment friendly strategies in housing."

Strong support from international partners.

According to Mr. Bruno Bosle, Country Director for AFD India: "The 100 million euro credit line will support NHB's refinancing operations to housing finance companies, banks or home buyers carrying eligible green building projects certified by local labels (IGBC and GRIHA). Doing so, it will encourage further adherence to green norms by housing projects. I am convinced that NHB's programme will be a major achievement for the Indian housing sector."

Elaborating on the technical assistance component of the programme, Ms. Henriette Faergemann, First Counsellor for the European Union to India, spoke about the comprehensive training plan which includes trainings, capacity building activities and awareness campaigns. Indeed, "EU is a committed partner of India and working extensively over the past years addressing issues like climate change, green housing, energy efficiency, waste management, to name a few. SUNREF India programme fits well with the EU priorities in India as well as EU's global priorities. With a EUR 12 million grant and technical assistance from the EU, we hope to support and reinforce the stakeholders understanding and expertise on green affordable housing through awareness campaigns, trainings and other capacity building initiatives."

High commitment to deliver environmental and social positive outcomes.

Green buildings deliver environmental, economic and social benefits for both, promoters and users. Indeed, the building sector has a large potential for significantly reducing greenhouse gas emissions compared to other major emitting sectors. Certified green buildings result in energy savings of 40 to 50% and water savings of 20 to 30% compared to conventional buildings in India.

By 2025, 12,000 households will benefit from SUNREF Housing Programme India, of which at least half of them will be from economically weaker sections of society.

About AFD

AFD is an inclusive public financial institution and the main actor in France's development policy. It makes commitments to projects that genuinely improve the everyday lives of people, in developing and emerging countries and in the French overseas territories.

AFD works in many sectors - energy, health, biodiversity, water, digital technologies, training - and supports the transition to a safer, more equitable and more sustainable world: a world in common. Its action is fully in line with the Sustainable Development Goals (SDGs).

Through its network of 85 agencies, AFD operates in 115 countries and is currently supporting over 4,000 development projects. In 2018, it earmarked EUR 11.4bn to finance these projects.

About SUNREF

SUNREF is one of the innovative tools developed by AFD to promote the emergence of "green" finance tailored to the needs of economic actors in countries in transition. It aims to allow local financial institutions to take action to fight against climate change.

SUNREF helps develop the practices of financial actors via financial support and technical assistance to facilitate access to green energy and promote the sustainable management of natural resources. The ultimate goal: ensure the development of a low-carbon economy and allow economic actors to adapt to this transformation.

About the European Union (EU):

The EU, which consists of 28 countries, has the world's largest economy and its third largest population, after China and India. Though richly diverse, the countries that make up the EU (its 'Member States') are all committed to the same basic values: peace, democracy, the rule of law and respect for human rights. They have set up common institutions so that decisions on matters of joint interest can be made democratically at the European level. By creating a frontier-free single market and a single currency (the euro) which has been adopted by 19 Member States, the EU has given a significant boost to trade and employment. It is also at the forefront of policies on sustainability.

EU-India relations: For over 50 years the EU and India have worked together to reduce poverty, prevent disasters, expand trade, and promote joint research in energy, health, agriculture and many other fields of mutual interest. More information at: http://eeas.europa.eu/delegations/india

About NHB

National Housing Bank (NHB) was set up on 9 July 1988 under the National Housing Bank Act, 1987. NHB has been established with an objective to operate as a principal agency to promote housing finance institutions both at local and regional levels and to provide financial and other support incidental to such institutions and for matters connected therewith.

PWR PWR

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)


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