Q.1014: Government incentives -

Loans to setup new factory in

India

Question: Dear Sir/Madam, We are looking to set up a factory/company in India, either in the state of (Tamil Nadu/ Kerala/Mysore). Our aim is to increase opportunity for low-income women, and their families, in the South of India. We would like to put forward some questions in a relationship wth opening this factory. a. The cost of opening a facility in this area. b. What incentives will the bank give us on taking over a “sick industrial unit”? c. What incentives if any local government can provide us to bring our business to the community, You will be so much appreciated Kelly Francis Answer: Your question is unclear! You need to come up with a better plan to get answers to your questions. No one can tell you what the cost of opening a new facility will be without knowing the type of business you intend to pursue or the precise location where you plan to set up your factory. Tamil Nadu and Kerala are two vast states in India. Unless you have a viable business plan and proof of monetary investment, no state government in India or for that matter any financial institution in India will offer bank loans or help for new business ventures. State Governments will provide help based on how beneficial your investment is going to be to their state. Banks will provide loans based on your monetary investment in the business, plus your business background. Once you have a business plan, contact the Indian consulate or state government commercial section and you will be able to get more information on benefits and incentives offered in India for new business ventures. You may find an article titled ‘ How to set up a new business’ in India helpful. To read us the link provided: http://nriinformation.com/articles2/govt_grants.h tm