Introduction
India is a fastest growing economy; industrial development is the back bone of any state. A large number of investments by overseas corporate are taking shape. Some of the corporate have presence in India, and plan for major expansions in other states, while the others are entering the Indian market as new players.
State governments
The state governments provide a wide range of incentives to industrial land buyers, to keep their interest alive. The incentives and promotions start with discounts on industrial land price, state tax and infrastructure benefits. Companies acquiring bulk land, keeping future expansion plans, they have an edge over the other buyers in terms of discounted land price. Some state governments are virtually competing against each other to attract these lucrative investments into their states.
Industrial land in open markets
Overseas corporations, who plan to set up industrial project in India for the first time, start shopping for industrial land in the local open markets. Some of the stumbling blocks faced by them are lack of knowledge on the local industrial land rules and regulations, transparency, credibility, and ownership of the land. Some property brokers, engaged lack basic working skills and policies on industrial development. This makes identification and acquisition of land a difficult process. Sale prices for industrial land in the open markets have un wanted strings attached, making little sense to the buyers. Industrial land may vary in pricing structure and command a premium on two major factors that is the location of the land and availability of options in that market.
Transfer of ownership
Identifying and buying an industrial land for a mega project is one part, transferring the property to the new ownership is a back breaking process. (Especially, if the land is acquired for the open market) Overseas nationals find themselves in a maze of rules and regulations while transferring the property and getting started. The costs of transfer of land and registration need to be calculated as this adds on to the capital expenditure.
Broker assistance
It is important to engage a good knowledgeable commercial broker. All brokers do not specialise in industrial land. It is very important to gauge your representative you hire; he should have the expertise to assist you at every step. Before short listing a broker, collect enough information through your own sources, about the local regulatory laws, price structures, and the practices. Your broker should correspond to your findings. He should guide you on the procedure and help you identify suitable sites. The broker should be able to give an analysis report on the local neighbourhood, in depth details of each site visited.
A quick visit to the local transferring and registration authority, should give a better view of the sale proceeding. A verification of the land records and status, ownership details etc can be cross checked.
Source by Prabhmeet Singh
