is there any permission needed to build

The entire layout should be approved by a competent Development Authority and the use of the land should be converted.  Unless the layout is approved, further constructions are not permitted.  Even when lay out is approved, individual owners should take prior approval by submitting blue print in advance.  There are several consultants that undertake such activities on a turn-key basis and you can approach those agencies to reduce your burden and not risk any investment of hard-earned money into a field you are not fully acquainted with.

Permissions of the State Government as well as Local Municipal authorities are needed to establish a township in India.