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I tried starting a manufacturing unit in India

superr.in

91–100 of 190 posts

Re: I tried starting a manufacturing unit in India

#91
post #78

Earlier quoted context omitted.

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.

It's very hard to capture.

All they do is - keep silence. If you understand the cues and pay up yourself, your work will be done otherwise you can keep waiting forever.

Re: I tried starting a manufacturing unit in India

#92
post #78

Earlier quoted context omitted.

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.

> evidence to be prosecuted

Just be sure to bribe the police, the judge etc.

Re: I tried starting a manufacturing unit in India

#93
post #82

I wonder about the larger context here. Generally speaking in developed counties you can't just buy any given farmland and rezone it ... at will, just because you want to. That's not an automatic thing. Nobody wants a smelting plant to just show up next to their town and pop up because someone wanted to build a smelting plant .... or something with massive truck traffic ... that now goes through small neighborhoods /…

The land in the write-up is located beside a highway and trucks don't need to go through any town to get to the unit. Nor a I trying to build a heavy industry like a smelting plant. I am currently planning to build a warehouse shed which could be later converted into very light manufacturing plant for animal feed pellets or something similar. Also, there are very few areas zoned as Industrial land. Also, this isn't a…

I wonder if India has a system where land is farmland or unused ... but is staged to be used as light industrial in the future?

At least in the US that's a thing where local communities zone areas for future / potential use ... but it isn't that zone at the moment because it is being used for something else. At least in the US those are fairly plentiful.

Re: I tried starting a manufacturing unit in India

#94

I believe one can get land for manufacturing in MIDC area much more easily -> https://services.midcindia.org/Services/VacantPlotsDetails.a... by getting allotment directly from government or buying resell.

My land is beside a MIDC (Sangli Miraj Kupwad MIDC) which has been completely sold out. And I want to build it in Sangli because of the cheap raw material available in Sangli itself.

Re: I tried starting a manufacturing unit in India

#95

Earlier quoted context omitted.

Most people are willing to pay bribes, so this is not an issue for them

But is this scalable? A lot of big manufacturing moving now like Foxconn etc is just assembly. What they should want in the long run is to have the whole ecosystem in place. India has lagged a lot in terms of its peer economies in other parts of Asia which almost started at the same place in the last century. I know they did liberalisation later than most, but they haven't catched up well even after that.

[deleted]

Re: I tried starting a manufacturing unit in India

#96

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…

>Small town governments in USA at least are very strict with their zoning codes Even cities in the US. I live in a "historic District" in cambridge ma in a big ugly brick building with 35 units. 3 of us wanted to change windows, as they're original 1940s and terrible. So we go to get a permit. The permit department sees "exterior change" looks at the address, and sends it to the historical commission. They won't sign…

Cambridge is not representative of reality outside of Cambridge.

Re: I tried starting a manufacturing unit in India

#97

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.

No no no. Electoral bond purchase won't get you you anywhere.

Before the electoral bonds, all political funding happened through cash. Which was more non traceable than the current electoral bonds.

But yes the ideology of the party matters.

Central government is pro business and they have proved it in Gujarat by making it a lot easier to NA land in Gujarat.

State Government (esp. INC) is communist and anti-free-market anti-business party which seeks to create as many hurdles as possible.

Re: I tried starting a manufacturing unit in India

#98
post #78

Earlier quoted context omitted.

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.

Most of the time, they don’t ask for money explicitly at all but they will put procedural roadblocks so one pick up the cue and bribe them. Like Priority Shipping for a bad analogy. Pay to fasten and smoothen your experience kind of thing.

Of course it’s illegal.

Re: I tried starting a manufacturing unit in India

#99
post #79

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 indust…

There are hardly any lands zoned as "industrial use" in India and all land is agricultural land by default because of the high fertility of land everywhere.

Re: I tried starting a manufacturing unit in India

#100

Earlier quoted context omitted.

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!

I have thought about it many times. But the problem is everyone knows about this and majority of people think of this is good because they have been brainwashed by communistic ideology and they think that business people are bad and evil and hence they should be controlled and suppressed by all possible means.

That mindset seems to be pretty common across the developing world, unfortunately.
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