Industrial Estates (IE) are perceived as drivers of development, however limited land resources is forcing more governments to develop of industrial estates at locations where barren / less productive land is available. To ensure sustainable industrial estates, integrated townships of an economic size capable of supporting businesses and homes, with adequate physical and social infrastructure become a pre-requisite. It is here that the concept of Integrated Industrial Areas / Regions comes to fore. This short note provides for a brief introduction to integrated industrial areas.

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Industrial Estates (IE) are perceived as drivers of development and are increasingly forming an integral part of development strategies of many countries worldwide. In view of limited land resources more governments are opting for development of IEs at locations where barren / less productive land is available. In-spite of lesser availability of natural & human resources, increasing number of IEs are being set up in such locations ensuring land availability with lower investments. It is observed that infrastructure facilities need to be created to support these establishments on sustainable basis. Formation of balanced industrial systems can result in numerous environmental and economic benefits at a regional level along with the local perspective.

Simultaneously, with a rise in the failure of conventional urban centers, it is becoming clearer that IEs are looking for sustainable integrated townships of an economic size capable of supporting businesses and homes, with adequate physical and social infrastructure.

In regional context, these townships must be well connected to other urban centers through regional transport infrastructure such as airports, railways, and highways. The townships must also have access to quality infrastructure such as drinking water, reliable power supply, integrated waste management services, including solid waste management (SWM), liquid waste treatment systems, other social infrastructure including health, education, leisure and recreation etc.

For ensuring sustainability in the development of a region, following five steps to regional sustainability would require to be adhered to.

• Employment Generation: Industrial development as identified based on the potential of the region
• Planned Urban Development: Demarcation of Zones (landuse – commercial, institutional, industrial, residential, recreational, Greens, etc), Transport, Develop activity nodes
• Upgrading Living Conditions: Provision of basic physical and social infrastructure and world-class facilities like Airport, integrated transport facilities
• Enhance Working and Leisure Conditions: Provision of Commercial facilities, entertainment complexes
• Balanced Ecology: Idea of planned development and a self-sustaining city with emphasis on energy conservation, recycling and reuse of the natural resources

It is here that the importance of an Integrated Industrial Area comes to fore.

Concept of Integrated Industrial Area on PPP basis

In order to transform a region, ‘Regional Planning’ is seen as an appropriate response to issues with regional dimensions. It is concerned with planning for an area (industry, township etc.) with distinctive economic and social characteristics, opportunities and issues – integrating it with other regions treating it as an extension of local planning, dealing with issues like goods & people movement / distribution, employment, communication networks and other support infrastructure services. It also needs to take into account the inter-regional flow of freight & population, employment, resources, thereby achieving a balance between developments in one region as well as other parts of the country / state.

The concept of area delineation has to involve the “differences and similarities” between these regions. The main objectives of demarcating these areas for Integrated Industrial Area Development are to

• Promote economic development
• Facilitate creation of efficient, equitable, sustainable urban settlements
• Facilitate public private partnerships including urban development
• Facilitate capacity building in private sector and Government for urban development

Promote Economic Development

The first and foremost objective of area delineation for Integrated Industrial Areas is to promote the economic development in the region. This involves consideration towards

• Facilitating emergence of consolidated, economically & environmentally sustainable urban centres
• Developing infrastructure to provide for various industrial sectors and other economic activities
• Facilitating creation of new livelihood and employment opportunities
• Promoting growth of social, medical & educational infrastructure
• Creating globally competitive industrial townships and catalyse overall development of the state/country’s economy

Facilitate Creation of Efficient, Equitable, Sustainable Urban Settlements

The success of the integrated industrial area would largely depend on the presence of a sustainable urban settlement near it. In view of the increasing load on existing urban centers, the following need to be considered during area delineation.

• Emergence of poly-nucleated urban agglomerations by encouraging creation of free standing towns, satellite towns etc.
• Encourage densification of urban built areas for achieving optimal utilization of resources & physical infrastructure and discourage unsustainable sprawl development
• Ensure sustainable urban development through strict adherence to risk mitigation measures
• Promote socially integrated and heterogeneous development that is sensitive to the needs of economically weaker section and informal sector
• Achieve a “Zero Impact” position, as far as practicable, in terms of impact on environmental, physical and social infrastructure

Facilitate Public Private Partnerships in Urban Development

Government agencies, especially the urban local bodies in general are financially stressed in terms of providing infrastructure facilities in urban area, the development of new agglomeration would lead to increased burden on the existing local bodies, hence the opportunities of public private partnerships in urban development need to explored and considered during conceptualizing the integrated area.

• Promote and accelerate private sector participation in various categories of infrastructure thereby supporting urban development in the state/country
• Facilitate emergence of newer service sectors such as Integrated Waste Management Services (IWMS), Facility Management Services (FMS) etc.
• Facilitate participation of State government bodies that own substantial assets in the form of urbanizable land and properties through Public Private Partnership Industrial Township projects

Facilitate Capacity Building in Private Sector and Government for Urban Development

PPP in urban development is still being tested in the markets, hence capacity building of both the government as well as the private sector would be an important part towards the sustainability of the integrated industrial area.

• Enable market to get properly articulated and segmented into various sectors such as industry, infrastructure, residential, institutional, commercial, recreational etc
• Ensure high quality of safety standards and hazard preparedness in strict compliance with relevant standards / codes
• Ensure professional monitoring of quality and compliance by peer review and third party supervision

Integrated Industrial Area Planning Considerations

An Integrated Industrial Area would need to consider the following (indicative only, not limited to):

• Land & Land Development Costs
• Master Plan along with Development Control Regulations
• Socio-Enviro-Economic considerations for developing industrial zones
• Socio-Enviro-Economic considerations for developing commercial / institutional / residential zones
• Integration of roads and transport network with landuse
• Development of well planned, sustainable and modular water supply systems
• Development of logistic facilities (ICDs, rail sidings, ports, airports etc.)
• Captive and sustainable power plants / distribution grid on case to case basis
• An Integrated Waste Management System including Storm-water, Liquid waste (industrial effluent and sewerage) and Solid Waste management system.
• Integrated Social infrastructure (including schools, colleges, hospitals, sports facilities, recreation & entertainment zones, parks and public spaces etc.)
• Integrated Residential Townships etc.

Role and Obligations of Private Sector Participants

Considering the financial constraints of governments and its various agencies, private sector participation is expected to play an important role in successful realisation / implementation of the project. The Private Sector Player (PSP) would have a crucial role in realizing / implementing objectives of the Integrated Industrial Area. The PSP would be required to ensure development of the project with specific consideration to:

• Project implementation as per Authorisation
• Employment generation norms
• Town planning norms
• Mitigation of risks as allotted to PSP
• On-site physical and social infrastructure norms
• Disclosure Norms
• Performance standards for operation and maintenance
• Provision for informal service providers

Government’s Role and Support

Government agencies would be required to enact the role of facilitator in implementing various Integrated Industrial Area Components / Sub-Projects. Government would be required to carry out rigorous project development activities so as to ensure that each sub-project has a tailor made structure and integrates with the detailed regional development plan. Project development activities would include all relevant studies including market assessment, techno-commercial feasibility, demand and infrastructure gap assessment, environmental, social, legal financial, and R&R aspects for the project. Government’s role would be to ensure:

• External Infrastructure till battery limits of the industrial area – Power/Roads/Water (part of it may be off-loaded to PSP)
• Support in Land acquisition and preparation for development
• Permissions for sourcing water and ROW for the Water Supply System’s transmission pipeline based on its proposed alignment.
• Assistance in clearances required for the development of rail sidings / ports / airports etc.
• Green channel procedures / single window approach
• Rating of PSPs & projects
• Robust monitoring mechanisms
• Macro level planning and regulation of development