Property Taxes
Annual taxes are levied by the local municipality or panchayat based on land usage, location, and assessed value.
- Typical rate: 1% to 2% of the assessed land value per year
- For land valued at ₹3 crore, annual tax ranges from ₹3 lakh to ₹6 lakh
- Additional levies may apply for infrastructure or development fees
Insurance Premiums
Maintaining insurance on the land or built-up infrastructure is essential to protect against fire, natural disasters, or third-party claims.
- Annual insurance cost: ₹1 lakh to ₹2 lakh depending on coverage and development
- Premiums increase if buildings, equipment, or liability coverage is included
- Construction phase insurance is different from operational phase insurance
Security and Maintenance
Security guards, fencing upkeep, and basic site maintenance are ongoing expenses, especially for undeveloped or partially occupied sites.
- Security and upkeep: ₹1 lakh to ₹3 lakh per year for guards, surveillance, or fencing repairs
- Includes weed control, drainage clearance, and basic utility checks
- May increase if the site is remote or has valuable infrastructure
Total Estimated Holding Cost
For a 1 to 2-acre industrial plot:
- Annual holding cost ranges from ₹5 lakh to ₹10 lakh, depending on development level, location, and protection needs
- Larger or more developed plots may require higher security and insurance investment