Property Taxes
Annual property tax is levied by the local municipal or panchayat body, based on the land’s assessed value and usage classification. Industrial properties usually carry a higher rate than residential ones.
- Typically ranges from one to two percent of the assessed value
- For land valued at three crore, annual tax may be around three lakh to six lakh
- May include additional service charges like waste, fire, or drainage fees
Land Insurance
Land insurance covers risks such as fire, theft, or natural disasters for any built-up structure or ongoing construction. While optional, it’s often required for financed properties or large developments.
- Estimated premium ranges from one to two lakh per year for basic coverage
- Can increase based on structure type, machinery, or extended liability coverage
- Discounts may apply for multi-year policies or secured premises
Security and Maintenance
Security costs vary based on whether manned guards, fencing, or surveillance are in place. Basic upkeep also includes cleaning, vegetation control, and minor repairs.
- Security personnel and systems: one lakh to three lakh annually
- General maintenance and landscaping: fifty thousand to one lakh
- Additional costs for lighting, fencing, or temporary office facilities
Total Estimated Annual Holding Cost
For an industrial plot valued around three crore:
- Property tax: three to six lakh
- Insurance: one to two lakh
- Security and upkeep: one to three lakh
- Total estimated annual cost: five lakh to eleven lakh