Financial Feasibility Analysis in Land Development: A Case Study of an Industrial Layout in Ballari, Karnataka

Based on the detailed engineering cost estimate and site-wise revenue analysis carried out for the proposed 12.88-acre industrial layout at Ballari, Karnataka, the following conclusions are drawn:   • The total development cost of the layout, comprising road work, RCC drains, compound wall, water supply, park development, electrical works and allied infrastructure, is estimated at ₹7,47,67,331.44. • The projected total income from the sale of 105 plots (corner, road-facing and odd-shaped sites) covering 2,04,978 ft² of saleable area is ₹32,02,24,800.00. • After accounting for land purchase cost (₹10,80,00,000.00), government fee (₹3,99,70,710.00) and interest cost (₹3,84,26,976.00), the project yields a net profit of ₹5,90,59,782.56, equivalent to a return of about 22.6% on total outlay. • The proposed land-use distribution (44.20% residential, 15% park and open space, 10% civic amenities and 30.8% roads) satisfies the minimum statutory requirements prescribed for layout development in Karnataka. • The study confirms that the project is financially feasible under the assumed cost and revenue assumptions; however, sensitivity to market fluctuations, construction cost escalation and regulatory approval timelines should be considered in subsequent investment decisions.

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