Industrial Estates | Meaning | Features | Objectives | Types

To promote industrial development, the Government of India has initiated several measures and provided various incentives. Setting up of industrial estates is one such measure. The government launched the programme of setting up Industrial Estates in 1955. The State government is responsible for planning, developing and maintaining the industrial estates. The Central government provides the required financial assistance for the setting up of industrial estates. Financial assistance of the Central government in the form of loans, grants and subsidies are provided to the State government.

What is an Industrial Estate?

An industrial estate is a place where necessary infrastructural facilities are made available to entrepreneurs. Industrial parks, industrial zone, industrial area, industrial township are some of the other terms used to denote industrial estates.

Features of Industrial Estates

The following are the salient features of industrial estates:

1. Separate plots and sheds: The entire land area allocated to the estate is divided into different plots and sheds. These plots and sheds are then allocated to the entrepreneurs at economical costs.

2. Cluster: An industrial estate is a planned cluster of units. For e.g. Tirupur is a planned cluster of knitwear and hosiery, Ludhiana is a planned cluster for machine tools, Surat for diamonds etc.

3. Regional development: Industrial estates promote regional development. They have been instrumental in developing backward areas in the country. They provide employment opportunities to many of the unemployed youth in the regions in which they are located. For e.g. Ambattur Industrial Estate in sub-urban Chennai has ensured
development of areas in and around Ambattur.

4. Common infrastructure: Infrastructure such as roads, electricity, water, telecommunications, postal facilities, banks etc. are provided in the industrial estate. All enterprises located in the industrial estate can access the infrastructural facilities located in the area.

5. Promote industrialization: Industrial estates promote industrialization and economic development. They provide the necessary facilities for setting up of industries. Since the required infrastructure is made available, entrepreneurs feel encouraged to set up industrial enterprises.

6. Different sizes: Industrial estates can be promoted in different sizes based on the land availability, requirements and potential for development.

7. Developed in all areas: Industrial estates can be developed in all areas such as urban, suburban and rural areas. They can be developed in developed as well as in under developed areas.

8. Promotion through any agency: Industrial estates can be set up by the government, co-operatives or by the private agencies. It can also be set up by public-private partnership.

Objectives of Industrial Estates

The following are the objectives of setting up industrial estates:

1. Ensuring well planned and structured industrial development.

2. To provide the necessary infrastructure.

3. To provide common facilities to a number of industries.

4. To promote development of clusters.

5. To enable small units to source products from one another.

6. To enable dispersal of industries.

7. To promote balanced regional development.

8. To ensure development of backward areas.

9. To provide a climate for smooth functioning of industrial enterprises.

Types of industrial estates

The following are the types of industrial estates:

1. Composite industrial estates: They comprise of a wide variety of industries. Most of the industrial estates are of this type. For e.g. in Ambattur Industrial Estate and Guindy Industrial Estate, Chennai, enterprises manufacturing different types of products are located.

2. Special purpose: They comprise of enterprises engaged in a specific industry such as hosiery and knitwear (Tiruppur), machine tools (Ludhiana), handicrafts, etc.,

3. Ancillary industrial estates: Ancillary industrial estates comprise of firms which manufacture ancillary products. They are found in industries such as automobiles, electronics, leather goods etc.

4. Flatted industrial estates: They comprise multi-storeyed building where light weight goods are produced with the help of machine tools.

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