What entitlements must be secured before construction or financing?

Before commencing construction or securing financing for an industrial land development project, several entitlements must be obtained to ensure the project is legally viable, financially attractive, and compliant with all regulatory frameworks. These entitlements are typically non-negotiable prerequisites for developers, lenders, and government agencies. Below are five key categories of entitlements that must be secured before breaking ground or raising capital:

1. Land Ownership and Title Clearance

• Full verification and documentation of clear title, possession rights, and mutation records.
  
• Encumbrance-free status confirmed through legal due diligence, including revenue records, court searches, and municipal archives.
  
• For JV structures, the execution of the land transfer or contribution agreement is required, duly stamped and registered.
  
• Essential for establishing legal authority to develop and for use as collateral in financing.

2. Change of Land Use (CLU) and Zoning Approval

• If the land is not already zoned for industrial use, CLU permission must be obtained from the local planning authority or the Directorate of Town and Country Planning.
  
• Zoning confirmation ensures compliance with master plans, regional development frameworks, and plot use restrictions.
  
• Also includes confirmation of Floor Area Ratio (FAR), permissible coverage, and access requirements.
  
• Required before any layout sanction, infrastructure investment, or architectural design can proceed.

3. Layout Plan Sanction and Building Plan Approval

• Submission and approval of a master layout plan that includes roads, utilities, common facilities, and plot demarcation.
  
• For vertical construction, separate building plan approvals must be secured from the competent authority (industrial township, local municipality, or state board).
  
• Site-specific studies (like traffic impact assessments or stormwater plans) may be required in some jurisdictions.
  
• Mandatory to proceed with construction and for legal occupancy certification later.

4. Environmental Clearances and Consent to Establish

• For brownfield or large-scale industrial projects, environmental impact assessments (EIA) and clearance from State Pollution Control Boards (SPCB) are required.
  
• Must obtain a Consent to Establish (CTE) under the Water Act, Air Act, and Hazardous Waste Rules.
  
• Includes site remediation plans if contamination is present, along with groundwater management protocols.
  
• Failure to secure this entitles penalties, shutdown notices, and project delays.

5. Utility and Infrastructure Approvals

• Pre-approvals or no-objection certificates (NOCs) from departments such as:
  
  • Electricity Board (for load sanction and substation setup)
    
  • Water and Sewerage Board (for industrial water usage and effluent connections)
    
  • Fire Department (for preliminary fire NOC, based on site layout)
    
  • Urban Local Body or Industrial Development Authority (for drainage, road linkages, and encroachment clearances)
    
• Critical for raising construction finance and ensuring readiness for occupancy or leasing.