Industrial estate meaning Features Objectives Classifications On the basis of organisational Advantages Disadvantages

1. Industrial Estate Meaning and
Importance

2. Meaning :
An industrial estate is a tract of land which is
sub divided and developed according to
comprehensive plan the use of a
community industrial enterprises.

3. Features :
The main features of an industrial estate :
 It is a tract of land subdivided and developed into factory plots and sheds.
 It provides all basic infrastructural facilities such as water power, transport,
Bank, post office, police check post, repairs and maintenance, work shop
etc..
 It is designed as a tool of rapid industrialization
 It is established to improve economic development of a particular region.
 Generally, industrial estates are established in economically backward areas.

4. objectives :
Main objectives of industrial estates are given below :
 To provide necessary infrastructure and accommodation facilities to small scale
industries.
 To decentralize industries to the rural and economically back word areas.
 To ensure regional balance in industrial development.
 To provide large scale employment opportunities.
 To encourage ancillarisation in surrounding major industrial units.
 To create healthy entrepreneurial climate the region.

5. Classification of industrial estates :
Industrial estates have been classified into different types on some bases. They are
1. On the basis of functions:
On the basis of functions rendered the industrial estates have been classified
into the following categories:
o General purpose industrial estates:
These industrial estates are also known as composite industrial estates. They
provide accommodation to all types of small scale industries
o Special purpose industrial estates:
Industrial estates build to suit the needs of particular groups of
entrepreneurs are called special purpose industrial estates.

6. 2. on the basis of organizational setup :
On the basis of organizational setup industrial estates been classified into the following types;
 Government industrial estates:
The industrial estates constructed by governments (central or state ) are called
government industrial estate.
 Private industrial estates:
The industrial estates constructed by private bodies are called private industrial estates.
 Co-operate industrial estates:
Industrial estates built on co-operative principle are called co-operative industrial estates.
 Municipal industrial estates:
Industrial estates constructed by municipal authoritiesbodies municipal corporations etc. are
called municipal industrial estates.

7. 3. Other type :
 Ancillary industrial estates:
An industrial estate which allows to house only those unites
which are ancillary to a particular large scale industry.
 The workshop bay :
Industrial estates construed mainly for very small firms engaged
in repaid work.
 Flatted factory estates :
In large cities the availability of space is very limited.

8. Advantages of Industrial Estates :
Industrial estates offers various advantages. They are
 Availability of economics of scale :
Industrial estates offers economics of scale since large number of units using
the common facilities are housed at a particular periods.
 Economies of Agglomeration :
An industrial estate is an ideal place to house industrial units. It encourages
entrepreneurs to establish their industrial units in industrial estates only.
 Low Investment :
A small scale entrepreneur can obtain a suitable accommodation for this
enterprise with least effort and at minimum cost.

9.  Saving of Time and Effort:
An individual entrepreneur is relived from the difficulty of
searching for suitable site or shed.
 Mutual co-operation;
Industrial estates promote the spirit of co-operation and
joint efforts of different units.
 Balanced Regional Developments:
industrial estates are established in relatively backward
areas.

10. Disadvantages of Industrial Estate :
 The working conditions declined during industrialization.
 Child labour was an essential component of industrialization.
 Living conditions around the new factories were not always
better.
 Industrialization created more income inequality for the top
0.1%