Simplified Laws Guide to Taxation and Legal Concern Want to know the meaning? It’s simple. Converting Green field (Agricultural Land) into a Project (Industrial Project). It is converting farmer’s land into business tycoon’s paradise. It is converting jungle into a concrete jungle. This is the answer coming right from the heart. But, sorry, this is not the right answer!
Greenfield project is one which is constructed anew; without demolishing the existing structure or renovating the existing facility or revamping the existing plant. For example, starting a new power plant in an area where there is no prior set up or facility of power plants. In contrast, those facilities which are renovated or remodeled or upgraded are called Brownfield Projects.
In India, the Greenfield Projects are also referred to those projects where Foreign Direct Investments are made. These require huge capital inflow to set up the facility and such facility is set up in an area yet to be developed. Normally, the developing countries encourage Greenfield projects as these projects are expected to create a large number of job opportunities and development of infrastructure in the neighborhood. The classic example of Greenfield project is Bangalore International Airport Limited (currently called as ‘Kempegowda International Airport) acquiring 5000 acres of fertile land!
Thought for the day
Don’t judge each day by the harvest you reap, but by the seeds that you plant.
