KUTUMB – The need and the solution

Written by Amor Kool- Amor Kool is a Panel Member of National Building Code of India and Technical Committee Member to Bureau of Indian Standards and BEE ECBC. He's currently working as Environmental and Social Governance Lead at IIFL Home Finance Ltd. 

There is a missing link of financial inclusion in affordability and sustainability. The development in line with the sustainability or green building requirement will ensure the quality of life through accessibility, ventilation, daylighting and flexibility in design. However, this approach may increase the cost of construction and can be quantified as an incremental cost for the green building. It is critical to establish, that the incremental cost is calculated against the contemporary practice of construction. In order to meet the sustainability requirements, an affordable housing design should be carefully worked out, that implies that a good architect or designer is required in addition to a better contractor is also needed to execute the designs. The incremental cost majorly applies to the soft cost of design and construction, as the consultancy charges will be higher than the contemporary designers. In its two introductory chapters in Ahmedabad and Indore, Kutumb connected affordable housing developers to industry expert Ar. Ashok B. Lall, who is known for sustainable and low-cost green building designs. This knowledge sharing with the developers was a revelation. Wherein, the methodology to reduce the cost of the project has been established making sure, that project meets the green building requirement.

The biggest takeaway from both of the events is the awareness among developers that by using low-cost techniques a sustainable and affordable housing can be developed. The event also connected the developers with rating agency which ensures that their soft cost of achieving green building rating remains minimal, and they get hand-holding in terms of approach towards acknowledging their project worldwide through these ratings. While following certain compliance system, it is apparent to increase the cost of project marginally. For that purpose, the financial institutions gave their assurance, in terms of offering a various financial mechanism to manage the additional cost they may occur.

The financial inclusion completes the chain, which is as of today broken. Kutumb has become a platform wherein all the stakeholders can communicate and resolve their potential issues. As a financial institution, IIFL is proud of creating an environment, which is neutral, unbiased and driven by knowledge.