When should infrastructure development be completed?

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1. Before Offering Land for Sale or Lease

Infrastructure development should ideally be completed prior to marketing or selling industrial land. A fully serviced plot is more attractive to buyers and:

  • Demonstrates readiness for immediate use
  • Increases buyer confidence and reduces perceived risk
  • Commands a higher price per square foot due to plug-and-play advantages

Key infrastructure components such as roads, power lines, water supply, sewage, and stormwater drainage must be in place to enhance saleability.

2. Before Construction Approvals and Project Launch

For landowners or developers planning to construct industrial facilities, infrastructure should be completed before applying for construction and operational approvals, including:

  • Building plan sanction
  • Factory license
  • Pollution Control Board clearance

Authorities require basic services like access roads, electricity, water, and waste systems to approve industrial activity. Lack of infrastructure can delay or even deny regulatory permits.

3. In Line with Industrial Policy or Allotment Conditions

In government-developed industrial parks, infrastructure development is often governed by:

  • State industrial development corporation guidelines
  • Land allotment conditions that mandate timely development
  • Compliance with investment and employment milestones

Development must be completed as per stipulated project implementation timelines, or the allotment may be revoked or penalized.

4. Before Occupancy or Operational Commencement

For operational readiness, infrastructure must be in place before factory commissioning or occupancy of industrial units. This includes:

  • Power connections and transformer installation
  • Water and sewage lines
  • Road access and parking facilities
  • Telecom and data services

Infrastructure readiness ensures seamless setup, prevents delays, and supports production schedules.

5. Before Seeking Financial Assistance or Investment

Investors and lenders evaluate the site’s infrastructure as a core criterion for:

  • Sanctioning loans and credit facilities
  • Approving venture capital or FDI participation
  • Issuing term sheets and project viability reports

Completed infrastructure development enhances project feasibility, strengthens investment proposals, and accelerates funding processes.

6. Before Employee Onboarding and Workforce Planning

If the facility involves on-site staff, infrastructure such as:

  • Restrooms and sanitation
  • Street lighting and security
  • Fire safety and emergency access

must be in place before recruiting or onboarding employees. It ensures safety, comfort, and compliance with labor and workplace norms.

7. In Sync with Master Plan Development Stages

In large industrial estates or private layouts, infrastructure development is typically phased in alignment with the master development plan. Each phase should be:

  • Completed before plot handover or lease activation
  • Certified by relevant authorities for quality and compliance
  • Coordinated with utility service providers for timely connection

This staged development ensures scalability while maintaining project integrity and market reputation.

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