How to Set-Up an Enterprise

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Infrastructure - Land & Building, Water and Power Supply

Land and Construction of Building

After deciding the location and site three important factors to be kept in mind before purchasing/ leasing the land are :

  • Availability of basic amenities like power, water,
  • Connectivity to nearest rail, road or port and
  • Price of the land.

Purchase/ lease the land judiciously, because once you have committed, most probably you will be working there for next 10 year or so.

Once an industrial plot for the unit is secured, then the next job is that of finding a suitable architect to design the outlay of area and factory. Design of factory building has to be in consonance with the type of industry. Have an appropriate plant layout. If you are setting business in home, plan the area which is to be used as your production centre or office judiciously. You may like to take help of a professional to ensure that the area is utilised optimally.

An architect's estimate of building construction is essential for loan applications. Further, architect's certificate for money spent on building is needed for disbursement of loan.


The state government offers incentives like land and building tax concessions, providing land at cheaper rates through the state government agencies to new and existing entrepreneurs.

Getting the Utility Connections

Among the utilities, of prime importance are power and water. Other utilities that might be required are steam, compressed air, fuel. Assess your requirement of such utilities, make arrangement to get these and ascertain the cost of consuming these.

Water Supply : Check out what is source of your water supply is it river, canal, tube well or something else, how far is it from your land, quality of water (PH, hardness), does it meet you specific requirements, rate/ water charges applicable, common storage facility, who is the operating authority (Public Works Department, Estate-Corporation, Municipality).

Power Supply : Nearest substation from where you will get power, power tariff rate, feeder type (industrial/rural) availability, quality of power, duration etc. In many cases getting power connection causes delay in setting up of plant. Therefore it is imperative to commence work on these aspects with diligent follow up. Power connections are generally of either LT (Low Tension) or HT (High tension) type. If connected load is up to 75 HP, LT connection is provided. For connected loads of 130 HP or higher only HT connection is provided.

A formal application needs to be made in a specific form to the state electricity board. An electrical inspector is deputed for evaluation of application to factory site, after which the load is sanctioned. In areas of power shortage, it is advisable to augment the power supply with a captive generating set.

Water connection is also obtained likewise by applying in advance in formal forms. The water supply can be augmented by installation of tube well.


The State Government offers a number of concessions and incentives to industry like Concessions in water tariff, Power subsidy, Subsidy on Generating sets, Transport Subsidy, Incentive for Pollution control and quality equipment depending on the location, size of investment and category of the industry.