INDUSTRIAL ESTATES Industrial Estates Definition Types and Objectives

INDUSTRIAL ESTATES

• Industrial Estates: Definition, Types and Objectives • An industrial estate is a place where the required facilities and factory accommodation are provided by the government to the entrepreneurs to establish their industries there. In India, industrial estates have been utilised as an effective tool for the promotion and growth of small-scale industries. They have also been used as an effective tool to decentralise industrial activity to rural and backward areas. Industrial estates are also known by different names, e. g. industrial region, industrial park, industrial area, industrial zone, etc. • According to P. C. Alexander, “An industrial estate is a group of factories, constructed on an economic scale in suitable sites with facilities of water, transport, electricity, steam, bank, post office, canteen, watch and ward and first-aid, and provided with special arrangements for technical guidance and common service facilities”. •

• In the opinion of Bredo, “An industrial estate is a tract of land which is sub-divided and developed according to a comprehensive plan for the use of a community of industrial enterprises. ” • The United Nations (1963) has defined an industrial estate as “a planned clustering of enterprises, offering standard factory buildings erected in advance of demand variety of services and facilities to the occupants. ” • Now, an industrial estate can be defined as a place where the required facilities and factory accommodations are provided by the Government to the entrepreneurs to establish their industries there. •

• • Types of Industrial Estates: Industrial Estates are classified on various bases. • • The prominent ones are: I. On The Basis of Functions: On the basis of functions, industrial estates are broadly classified into two types: (i) General type industrial estates, and • • • (ii) Special type industrial estates. General Type Industrial Estate: These are also called as conventional or composite industrial estates. These provide accommodation to a wide variety and range of industrial concerns. •

• II. Special Type Industrial Estate: • This type of industrial estates is constructed for specific industrial units, which are vertically or horizontally independent. • On the basis of Organizational set-up: • On this basis, industrial estates are classified into following four types: • 1. Government Industrial Estates, • 2. Private Industrial Estates, • 3. Co-operative Industrial Estates. • 4. Municipal Industrial Estates

• • III. On the Basis of the Other Variants: On the basis of other variants, industrial estates are classified into following three types: • • (a) Ancillary Industrial Estates: In such industrial estates, only those small- scale units are housed which are ancillary to a particular large industry. Examples of such units are like one attached to the HMT, Bangalore. (b) Functional Industrial Estates: Industrial units manufacturing the same product are usually housed in these industrial estates. These Industrial estates also serve as a base for expansion of small units into large units. (c) The Workshop -bay: Such types of industrial estates are constructed mainly for very small firms engaged in repair work. • • •

• Objectives of Industrial Estates: • The main objectives of the establishment of industrial estates are to: • 1. Provide infrastructure and accommodation facilities to the entrepreneurs; • 2. Encourage the development of small-scale industries in the country; • 3. Decentralise industries to the rural and backward areas; • 4. Encourage ancillarisation in surroundings of major industrial units; and • 5. Develop entrepreneurship by creating a congenial climate to run the industries in these estates/area /township, etc.