What costs arise from bringing utilities to raw land?

Hello LandBank

Developing raw land involves extensive planning and capital investment to establish essential utilities such as water, electricity, sewage, gas, and communication lines. These utility connection and infrastructure development costs vary by location, distance from supply points, and land use type.

Below are the major cost components, organized by utility type and development stage.

1. Electricity Supply and Connection

a. Power Line Extension

  • Cost per meter depends on terrain and voltage (HT/LT line).
  • Involves poles, transformers, cables, and civil work.
  • May range from ₹500 to ₹3,000 per meter or more.

b. Transformer Installation

  • Required for industrial usage (typically 100 KVA and above).
  • Cost ranges from ₹2 lakh to ₹20 lakh, depending on load requirement.
  • Includes transformer, switchgear, and metering infrastructure.

c. Application and Deposits

  • Security deposit to the electricity board (refundable).
  • Connection approval and load sanctioning fees.

2. Water Supply

a. Pipeline Extension

  • Cost of laying water supply lines (₹300 to ₹1,500 per meter).
  • Increases if the distance to the municipal line or borewell is long.

b. Borewell Installation

  • Drilling, casing, and motor setup can cost ₹1 lakh to ₹5 lakh.
  • Depends on depth, rock strata, and water availability.

c. Water Storage and Distribution

  • Construction of overhead tanks, sumps, and pipelines.
  • Includes pumps, filtration units, and pressure control valves.

3. Sewage and Wastewater Management

a. Sewer Line Connection

  • If a nearby municipal drain exists, a connection fee and infrastructure are needed.
  • It may cost ₹300 to ₹1,000 per meter for sewer pipe laying.

b. Septic Tank or STP Installation

  • If no central drainage exists, on-site treatment is required.
  • Septic tanks cost ₹1 lakh to ₹3 lakh.
  • STPs (Sewage Treatment Plants) for industrial/commercial use can cost ₹10 lakh to ₹50 lakh+, depending on capacity.

4. Gas Supply (If Applicable)

a. Pipeline Connection Charges

  • Cost varies by proximity to the gas network.
  • Includes pipeline extension, regulators, and meters.

b. Industrial Gas Supply License

  • Application and inspection fees.
  • Typically ₹50,000 to ₹5 lakh, depending on the authority.

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