Solution:

What is industrial Estates?

• Developing countries require institutional arrangements for their rapid industrialization and balanced growth. One such institutional measure is industrial estates.

• The term ‘industrial estate’ is called by different names, e.g., the industrial park, industrial zone, industrial region, industrial city, industrial area, industrial township, etc.

• An industrial estate has been defined as a method of “organizing, housing and servicing industry, a planned clustering of industrial enterprises offering standard factory building erected in advance of demand and a variety of services and facilities to the occupants”.

• In other words, an industrial estate is a tract of land subdivided and developed according to a comprehensive plan for the use of a community of industrial enterprises.

• It is a planned clustering of industrial units offering standard factory buildings and a variety of services and facilities to entrepreneurs.

Types of Industrial Estates:

• Industrial estates are classified on various bases.

The prominent ones are:

• 1. Classification based on Functions:

  • Based on functions industrial estates are broadly classified into two types :

(i) General type industrial estates,

(ii) Special type industrial estates.

• (i) General Type Industrial Estates:

  • These are also called conventional or composite industrial estates. These provide accommodation to a wide variety and range of industrial concerns. The Indian industrial estates are mainly of this type.

• (ii) Special Type Industrial Estates:

  • This type of industrial estate is constructed for specific industrial units, which are vertically or horizontally interdependent.

2. Classification based on Organizational Set-up:

• On this basis, industrial estates are classified into the following four types :

(i) Government Industrial Estates,

(ii) Private Industrial Estates,

(iii) Co-operative Industrial Estates

(iv) Municipal Industrial Estates.

3. Other Classifications:

• (i) Ancillary Industrial Estates:

  • In such industrial estates, only those small-scale units are housed which are ancillary to, particularly large industries. Examples of such units are one attached to the HMT, Bangalore.

• (ii) 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 the expansion of small units into larger units.

• (iii) 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 :

• (i) To provide infrastructure and accommodation facilities to the entrepreneurs;

• (ii) To encourage the development of small-scale industries in the country;

• (iii) To decentralize industries to the rural and backward areas;

• (iv) To encourage capillarization in surrounding major industrial units; and

• (v) To develop entrepreneurship by creating a congenial climate to run the industries in these estates.