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I tried starting a manufacturing unit in India

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Re: I tried starting a manufacturing unit in India

#71

Post by adamsvystun »

asdfasgasdgasdg wrote: post #4

It's interesting because you can see how theoretically any of these requirements would be a reasonable step before starting a manufacturing operations. I know in silicon valley for example many environmental problems were caused by insufficient oversight of manufacturing. However, the road to hell is paved with good intentions, as described in the article. I'm sorry to hear this is happening and I wish you good luck…

Default-yes might not be necessary. If you really wanted to make the current process efficient, you would be able to. Image if the whole process was online, and not you were responsible for collecting the NOCs, but the government internally. Ideally, the government should contact you only for the info that they don't already have. The problem is the incentive to create such a system is low (because of how it trickles down from electoral process).

Re: I tried starting a manufacturing unit in India

#72

Post by marcinzm »

flerchin wrote: post #36
rohan_shah wrote: post #5

Earlier quoted context omitted.

If I paid the amounts they wanted ~ 10,00,000 (10 lakh or 1 million) Rupees each, it would be done in 7-8 months.

I'm confused by why you wouldn't just pay. If I'm not misunderstanding google, we're talking $60 USD. Which is a pittance.

1,000,000 rupees comes out to $13k according to google. Since you need to bribe multiple entities (I'm guessing all the ones listed in the article) that probably comes out to $150+k total.

Re: I tried starting a manufacturing unit in India

#74

Post by as300 »

ipsi wrote: post #60
rohan_shah wrote: post #21

Earlier quoted context omitted.

Actually there are almost no pre defined industrial zones. There are very few and most of them are bought out. I can hire an lawyer or agent to this work, but the cost is very very high. I decided to do it myself to understand the depth of this mess.

Having now done all of this yourself, do you think the amount they charge is reasonable, given how incredibly painful it is to do this on your own?

seems like its reasonable only if you take corruption and cronyism as a given

Re: I tried starting a manufacturing unit in India

#75

Post by ramshanker »

I hate to say this, but what he went through is reality. :(

HOWEVER my friend, if there is a will there is a way. ;)

Is “bribe” the only way? It is one, but not the only one. Maybe you can rent space, maybe you can buy a land already classified as “NA”. Maybe apply under several “Special Economic Zones”.

I still would have preferred if I could start on my own land.

Re: I tried starting a manufacturing unit in India

#76

Post by kamaal »

sushshshsh wrote: post #43
epx wrote: post #31

As a famous Brazilian writer said: "Underdevelopment is not improvised; it takes centuries to perfect."

It's almost as if the process is designed to prevent new competitors from being able to compete ^.^ Now, I wonder who exactly were the people involved who lobbied for and paid money for these things to happen.

>>process is designed to prevent new competitors from being able to compete ^.^

No, the process is designed to limit fraud and prevent fly-by-night companies from squatting resources for the real businesses.

One can argue that the government must place trust in citizens, but then in India time and again we see even reasonably sized businesses defaulting on loans, and squatting land resources. You also need a lot of regulation and inspection, to ensure people are not drinking fertilizers with Cola. Such situations are actually common than one thinks.

The problem here really isn't law or law maker. The public in India in general is corrupt, and even honest sounding people become corrupt when offered an opportunity. There's only that much you can do when there's that much lies and corruption, you can have laws to limit them, but then these kinds of side effects show up.

Re: I tried starting a manufacturing unit in India

#77

Post by sbmthakur »

LockAndLol wrote: post #48
rohan_shah wrote: post #2

Author of the article here. Do ask me if you have any questions.

Have you considered contacting a local newspaper and going onto social media about this? It seems like the only ways to move this forward would be ("easiest" to most difficult): - forcing their hand with public shaming - forcing their hand with legal measures (looks like you're doing that) - changing things by getting officials into office that _want_ to change things P.S respect for hanging there this long already!

It may not be a good idea considering that those seeking bribes could be connected to goons. There have bee attacks on whistleblowers in rural Maharashtra in the past.

Re: I tried starting a manufacturing unit in India

#78

Post by ipnon »

praveen9920 wrote: post #34
blntechie wrote: post #24

I think what the OP went through is pretty much re-zoning of an agricultural land to commercial/industrial land which probably will run into similar roadblocks in Western world too? Of course, not saying it will take this long but have heard about similar bureaucracy. Small town governments in USA at least are very strict with their zoning codes and based on things what I have heard, changing the zone sometimes requi…

It is not just about red tape, it is about corruption. Govt. Employees in India join the Govt job only for "alternative" revenue ( bribes ). This process is usually handled by "agents" who knows how much these govt employees expect and provide "easy" services to whoever wants to get shit done. To take an example a simple thing like driving license takes couple of months to get if one is planning not to involve an age…

It must become simple for a bribery captured in evidence to be prosecuted. This is anarchy otherwise.

Re: I tried starting a manufacturing unit in India

#79

Post by duxup »

blntechie wrote: post #24

I think what the OP went through is pretty much re-zoning of an agricultural land to commercial/industrial land which probably will run into similar roadblocks in Western world too? Of course, not saying it will take this long but have heard about similar bureaucracy. Small town governments in USA at least are very strict with their zoning codes and based on things what I have heard, changing the zone sometimes requi…

I think in the US it GREATLY depends on what is going in that location.

"Light industrial", at least in my area is a pretty easy thing to rezone by the local authorities. At least it is in my area in suburbia in the twin cities MN.

Granted that doesn't mean a town couldn't just say 'no'. On the other hand there's plenty of land already potentially rezoned land you can buy and it's no big deal.

Now bigger scale industrial is a whole other story. Nobody wants a smelting plant company to just show up at the city council meeting and announce they bought a bunch of farm land on the edge of the town...

Re: I tried starting a manufacturing unit in India

#80

Post by manquer »

pratik661 wrote: post #52
calvinbhai wrote: post #38

Earlier quoted context omitted.

This is something that’s hard for someone like me to know (living outside India and no experience in setting up a business in India) Does it make a difference if same party is in power in center and state? The general consensus I see is that it doesn’t make such a big difference (everyone compares to Gujarat which is reaping the benefits of good admin over last 20 years). Current states have a lot of rot to remove an…

I'm not too familiar with India either, but I figured that if the same party were in power in Maharasthra, then they would be able to apply pressure to the civil servants who were witholding their signatures (perhaps in exchange for non traceable Electoral Bond purchases) Also, India has a unique federal structure where states can override central laws.

Override union laws ? Do you have examples of that ? You mean ignore them ? Ignoring laws , orders has happened and either the union government has not sued the state for various reasons or cases are still sitting in court.

There are some powers in the shared list , where the state can specify its own rules etc.

Over time it’s trending towards union control for example removing VAT and replacing with GST etc

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