Industrial Estate: Propelling Industrial Growth

The term industrial estate is similar to industrial park, industrial district, industrial zone, special economic zone and eco-zone etc. Setting up industrial estates would go a long way in fuelling industrial growth. Properly designed and implemented industrial estates can attract small and medium scale value added industries. Most of the states have around 200-300 industrial estates distributed all across the districts.

It targets high and value adding small and medium sized industries that do not have the capacity to develop their own infrastructure but have the capacity to pay rent for it.

Its advantages are attracting investments, generating employment, leverage raw material sources, skilled man power resources and proximity to end use resources.

Further they can be bifurcated as specialized estates and generalized estates.

Where generalized estates cater to all types of industries, specialized estates cater to software, plastics and textiles etc. Again they can be industrial units comprising of small and medium sized plots or pre-built factories.

A good location involves certain issues that need to be considered in setting up an industrial estate:

Locations, configuration and design
Institutional framework for private sector participation
Government policies and incentives
Review of current scenario of industrial estates in the state, in terms of the land area, employment generation and infrastructure etc.
Identifying potential for further development


An industrial estate is configured around three zones: Industrial, residential and the commercial zones;

Where an industrial zone caters to both domestic and export markets
Residential zone provides for housing facilities
Commercial zone comprises of support facilities like banks, post office, hospitals, shopping centers, clubs etc.


Conclusion: There is a need for specialized agency at the state level to lay down rules and guidelines.

A profit motive must be brought about by involvement of private sector, the location and design must be tailored to leverage the natural competitive advantage, better concessions in form of tax incentives and involvement of local government.

Promotion of industrial estates got a boost by the Government of India towards the end of the first five year plans (1952-57). The role of the Central Government in the upkeep and maintaining has been in that of laying down the guidelines for the State Governments. State Industrial Development Corporation sets up infrastructure facilities to promote industrial growth by setting up industrial parks, identifying and promoting industrial projects, handling the operations of industrial parkas and financial participation in terms of loan and direct equity participation.

There is a need for private participation in setting of industrial parks because of worsening fiscal health of the state and commercial unavailability. Private sector participation will ensure a more commercial approach to the entire exercise of setting up and managing industrial estates. This will lead to a better choice of location, design and location facilities, better collection of revenues, professional and innovative management, greater accountability and fund mobilization.

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