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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

#141

Post by vikramkr »

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…

You won't face these overt bribes - there's a difference between red tape and the requirement for bribes

Re: I tried starting a manufacturing unit in India

#142

Post by vikramkr »

jacknews wrote: post #51

Try building a factory on farmland in, say UK. This doesn't seem to have anything to do with 'starting a manufacturing unit', but everything to do with completely legitimate government land-use planning / zoning rules, etc, albeit a seemingly inefficient process. The author should have performed due diligence on that process before embarking.

your local government officials in the UK will refuse to sign off on documents without receiving bribes?

Re: I tried starting a manufacturing unit in India

#143

Post by vikramkr »

jacknews wrote: post #118
cinbun8 wrote: post #59

Earlier quoted context omitted.

You're missing the point. He's not saying he's against any of the documentation. It shouldn't be this hard, re-zoning or not.

re-zoning should be somewhat complex in most cases, as there are many factors to consider. You can't just construct a steel mill next to a conservation beauty spot, simply because you 'bought' the land. Ideally.

unfortunately, its not complex in this case, as it's pretty clear that it would be simple to get this done if the author was willing to pay bribes. Systems like these are only complex for the people that don't want to behave unethically.

Re: I tried starting a manufacturing unit in India

#144

Post by vikramkr »

danans wrote: post #81
rohan_shah wrote: post #2

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

Your article seems to imply that the process is inordinately difficult in India, but I'd challenge you to locate a country/jurisdiction that wouldn't put you through a rigorous process to convert a plot of agriculturally zoned land into a factory. Maybe Shenzhen? But that's hardly agricultural anymore from what I've heard. I imagine you'll find few, and I suspect the infrastructure will be very poor in those places.…

I got the impression that the complaint was more about the bribes and all than the regulations meant to protect the land

Re: I tried starting a manufacturing unit in India

#145

Post by vikramkr »

jhallenworld wrote: post #7
rohan_shah wrote: post #2

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

Can you bring media with you when they ask for bribes? Perhaps local news would be interested in publishing it.

Thats about as newsworthy as a story reporting that humans breathe air - it's very common knowledge in India

Re: I tried starting a manufacturing unit in India

#146

Post by vikramkr »

DenisM wrote: post #122
de6u99er wrote: post #105

This sounds worse than Eastern Europe. My wife once had interactions with Polish authorities and the first official told her immediately what amount of bribe money will be necessary to get it done quickly, contrary to everybody involved sitting it out as long as possible. When she asked why the bribe is so high, the government employee explained to her whom of his colleagues he has to pay himself to get it done quick…

> you would have already received your approval if you were willing to pay a bribe There is a law that prohibits American citizens from bribing foreign officials: https://en.wikipedia.org/wiki/Foreign_Corrupt_Practices_Act

Bribery is illegal in India too.

Re: I tried starting a manufacturing unit in India

#147

Post by newen »

epx wrote: post #127
kamaal wrote: post #76

Earlier quoted context omitted.

>>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 r…

Bureaucracy is a lazy way to do this.

Right, the free market is a much more efficient way to do this after a couple of thousand people die from drinking adulterated fruit juice.

Re: I tried starting a manufacturing unit in India

#149

Post by csomar »

Okay, I'll assume either negligence or innocence for the OP; but one important point is: Is there a lack of industrial zoned land in that region? Why didn't you buy or lease an industrial area to build whatever you are going to build.

Where I live, industrial lands run at 5-10 times the price of an agricultural land. So someone might justify going through the lengthy process (and bribe officials along the way) because he is going to profit at the end of it. At the detriment of people living or running their farms nearby.

My guess is that many people here are sympathetic because they didn't have their lives ruined by someone opening up a manufacturing unit next to their homes.

Re: I tried starting a manufacturing unit in India

#150

Post by [deleted] »

IkmoIkmo wrote: post #129
steffan wrote: post #29

Earlier quoted context omitted.

One thing to note to, is that any American citizen would be unable to set up manufacturing this way because it is explicitly illegal for U.S. citizens to pay bribes to foreign governments. [Foreign Corrupt Practices Act - FCPA] https://www.investopedia.com/terms/f/foreign-corrupt-practic... (Although given this account from presumably an Indian citizen, I can't imagine in any way recommending a non-local attempting t…

eh... you make it sound as if it's not explicitly illegal for Indian citizens to bribe other Indians.

[deleted]
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