Entrepreneurship and start-Ups

Unit 4- Government Schemes and Policies

1. Start up India
On January 16, 2016 the Government of India launched the Startup India initiative.
The very objective of the Startup India Scheme was to build a strong ecosyatem for promoting innovation
and startups in the country.
Further, such a drive would encourage sustainable economic growth and create large scale employment
opportunities. Thus, through this program the government intended to empower startups to grow through
innovation and design.

What is a Startup?
Eligibility Criteria for Startup Recognition:
a) The Startup should be incorporated as a private limited company or registered as a partnership firm
or a limited liability partnership
b) Turnover should be less than INR 100 Crores in any of the previous financial years
c) An entity shall be considered as a startup up to 10 years from the date of its incorporation
d) The Startup should be working towards innovation/ improvement of existing products, services and
processes and should have the potential to generate employment/ create wealth.

The benefits provided to recognized startups under the Startup India initiative are:
1. Self-Certification: Startups are allowed to self certify their compliance under six labor laws and three
environment laws. This is allowed for a period of five years from the date of incorporation of the entity.
Furthermore, such a benefit is given in order to reduce the regulatory burden for startups so that they can
focus on their core business and keep compliance costs low.

2. Tax Exemption: The profits earned by the recognized startups having granted inter ministerial board
certificate are exempted from income tax for three consecutive years. Also any consideration upto Rs. 10
crores received from shares exceeding the fair market value is exempted from tax.

3. Easy Winding of Company: In 90 days under Insolvency & Bankruptcy Code, 2016

4. Startup Patent Application & IPR Protection: Fast track patent application with up to 80% rebate in
filling patents, 50% rebate in filing of trademarks, panel of facilitators to help in filing of IP applications

5. Easier Public Procurement Norms: Exemption from requirement of earnest money deposit, prior turnover
and experience requirements in government tenders.
Startups can now get listed as sellers on Indian Government’s largest e-Procurement portal that is
Government– Marketplace (GeM)

6. SIDBI Fund of Funds: Funds for investment into startups through Alternate Investment Funds upto Rs.
10000 crores.

7. The Startup India portal – www.startupindia.gov.in – is a one-stop platform for all stakeholders in the
startup ecosystem to interact amongst each other, exchange knowledge and form successful partnerships in a
highly dynamic environment.
https://www.startupindia.gov.in/
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2.Make in India
Make in India program was launched by Prime Minister Narendera Modi on 25th September 2014 as an
initiative to encourage various companies to manufacture in India. Make in India is an initiative under Atma
Nirbhar Bharat Abhiyan which is dedicated to developing a modern independent India.

This initiative is to promote manufacturing companies to produce goods and services in India instead of
Importing it from other countries and encouraging citizens to use the made in India products only.
What is the idea behind Make in India Plan?
The ideology behind the Make in India plan was to generate more employment, saving the nation’s money
from exporting goods that can be or used to manufacture in India, and to create a conducive environment for
investments.

Three main Objectives of Make in India are as Follows:

1.To enhance the growth of the manufacturing sector of India by 12-14% annually.
2.To create 100 million additional manufacturing jobs in the Indian economy by 2022.
3.To ensure the contribution of the manufacturing sector in GDP is increased by 25% by 2022.

Registration for Make In India

Once the applicant meets all the eligibility criteria for Make in India, they can register themselves and fill-up the
form on the Make in India registration website.
After getting approval applicants will get a Make in India registration certificate for the validity of the company
and getting the right to use the official logo of Make in India.

Advantages of Make in India

 Develop Job Opportunity.
 Expand GDP.
 Increase in Brand Value.
 Up-gradation of Technology.
 Ease of Business.
 Availability of Young Minds.
 Development of rural areas.
 Increase in capital flow
https://www.makeinindia.com/
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3. Atal Innovation Mission
Atal innovation mission (AIM) is a flagship initiative, launched by NITI (National Institution of Transforming
India) Ayog to promote the culture of innovation and entrepreneurship in Inida.
AIM’s objective is to develop new programmes and policies for fostering innovation in different sectors of
the economy, provide platforms and collaboration opportunities for different stakeholders, creating awareness
etc.
AIM till present, has selected 10000 schools across India to establish ATLs.
AIM has currently has partnership with Intel and IBM and now SAP has become third partner of the
programme.
Key Activities of Atal Innovation Mission:
1. Atal Tinkering Labs: The Atal Tinkering Laboratories (ATL) are established within schools in order to
spark creativity among the minds of the youth of the country. It additionally aims to enhance deep
thinking, competitive thinking, and adaptive learning, in students.

2. Atal Incubation Centres: Atal Incubation Centres (AIC) at universities work with the aim of estabilising
and promoting growth among start-up enterprises. It encourages entrepreneurs, especially women, from
every sector.

3. Atal New India Challenge: With an aim to accelerate innovation even further, AIM provides
incentives for developments in sectors such as health and hygiene and water and housing. The
main aim is to develop such products that could aid social causes. ANIC focuses on numerous areas
such as education, railways, sanitation, healthcare, and electric mobility, among others.

4. Mentor of Change Program: A strong network of mentors has been set up to ensure mentoring of
students that are a part of the ATL and AIC incubators along with start-ups.
5. Atal Community Innovation Centre: The Atal Community Innovation Centre focuses on developing
innovation in regions of the country that have been underserved in terms of the required amount of
infrastructure and education.
https://aim.gov.in/
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4. STEP- Science & Technology Entrepreneurship Park (STEP)
The Science Parks and similar initiatives help in creating an atmosphere for innovation and entrepreneurship;
for active interaction between academic institutions and industries for sharing ideas, knowledge, experience
and facilities for the development of new technologies and their rapid transfer to the end user.

The Science & Technology Entrepreneurs Park (STEP) programme was initiated to provide a re-orientation in
the approach to innovation and entrepreneurship involving education, training, research, finance, management
and the government.
STEPs are autonomous bodies registered as societies under the Societies Registration Act.

The major objectives of STEP

 To forge a close linkage between universities, academic and R&D institutions on one hand and
industry on the other.
 To promote entrepreneurship among Science and Technology persons, many of whom were otherwise
seeking jobs soon after their graduation.
 To provide R&D support to the small-scale industry mostly through interaction with research
institutions.
 To promote innovation based enterprises.

Facilities and Services Provided by STEPs

 It offers facilities such as nursery sheds, testing and calibration facilities, precision tool room/central
workshop, prototype development, business facilitation, computing, data bank, library and
documentation, communication, seminar hall/conference room , common facilities such as phone, telex,
fax, photocopying. It offers services like testing and calibration, consultancy.
 Training, technical support services, business facilitation services, database and documentation
services, quality assurance services and common utility services.
 The department has so far catalysed 15 STEPs in different parts of the country, which have promoted
nearly 788 units generating annual turnover of around Rs. 130 crores and employment for 5000 persons.
More than 100 new products and technologies have been developed by the STEPs / STEP promoted
entrepreneurs. In addition, over 11000 persons have been trained through various skill development
programmes conducted by STEPs.

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5.JAM- Jan Dhan-Aadhaar-Mobile
JAM (short for Jan Dhan-Aadhaar-Mobile) trinity refers to the government of India initiative to link Jan Dhan
accounts, mobile numbers and Aadhaar cards of Indians to plug the leakages of government subsidies.
Benefits under PMJDY
PMJDY was announced by Prime Minister, Shri Narendra Modi in his Independence Day address on 15th
August 2014.
It ensure access to financial services, namely, Banking/ Savings & Deposit Accounts, Remittance, Credit,
Insurance, Pension in an affordable manner.

The government is pinning its hopes on these three modes of identification to deliver direct benefits to India’s
poor. Until now, the government has operated a multitude of subsidy schemes to ensure a minimum standard
of living for the poor. These take convoluted routes to deliver affordable products or services to them.
As they make their winding way through the hands of intermediaries, leakages, corruption and inefficiencies
eat away large parts. This is where the government hopes that the JAM can help. It cuts all the intermediaries
in providing subsidies.

 One basic savings bank account is opened for unbanked person.

 There is no requirement to maintain any minimum balance in PMJDY accounts.
 Interest is earned on the deposit in PMJDY accounts.
 Rupay Debit card is provided to PMJDY account holder.
 Accident Insurance Cover of Rs.1 lakh (enhanced to Rs. 2 lakh to new PMJDY accounts opened
after 28.8.2018) is available with RuPay card issued to the PMJDY account holders.
  An overdraft (OD) facility up to Rs. 10,000 to eligible account holders is available.
 The Pradhan Mantri Jan Dhan Yojana Account Eligibility Criteria entails that the applicant should be
from the age group 18-59 years.
 It is because of Jan Dhan that many people and small business and entrepreneurs could borrow loans at
low rate of interest.
 Aadhaar seeding of bank accounts gave an instant KYC benefit. This engaged the beneficiaries getting
benefit directly into their Jan dhan account.
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6. STAND-UP India
Stand-Up India was launched by Government of India on 5 April 2016 to support entrepreneurship among
women and SC & ST communities. The scheme is anchored by Department of Financial Services (DFS),
Ministry of Finance, Government of India.

Stand-Up India Scheme facilitates bank loans between Rs 10 lakh and Rs 1 Crore to at least one Scheduled
Caste (SC) or Scheduled Tribe (ST) borrower and at least one woman borrower per bank branch for setting up
a greenfield enterprise. This enterprise may be in manufacturing, services or the trading sector.

Eligibility
 SC/ST and/or woman entrepreneurs, above 18 years of age.
 Loans under the scheme is available for only green field project. Green field signifies, in this context,
the first time venture of the beneficiary in the manufacturing or services or trading sector.
 In case of non-individual enterprises, 51% of the shareholding and controlling stake should be held by
either SC/ST and/or Women Entrepreneur.
 Borrower should not be in default to any bank/financial institution.
Features/Benefits
 Composite loan (inclusive of term loan and working capital) between 10 lakh and upto 1crore.
 Composite loan of 75% of the project cost inclusive of term loan and working capital.
 The rate of interest would be lowest applicable rate of the bank
 Repayment - The loan is repayable in 7 years with a maximum moratorium period of 18
months.
 Rupay for withdrawal of working capital through debit card.
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7. TREAD- Trade Related Entrepreneurship Assistance and Development - February 14,
2006,
Trade Related Entrepreneurship Assistance and Development (TREAD) Scheme for Women. This scheme
envisages economic empowerment of women by providing credit (through NGOs), training, development and
counseling extension activities related to trades, products, services etc.

Objective
The main objective of the scheme is to provide poor women with sustainable employment by developing their
technical skills and entrepreneurial capabilities via various support services.
Benefits
Credit: Assistance in the form of the Government of India (GoI) grant of up to 30 per cent of the total project
cost.
Training and Counseling: Selected training institutions and NGOs conducting training programmes for
empowerment of women beneficiaries identified under this scheme can also avail of GoI grant of up to
Rs.1lakh per programme
Eliciting Information on Related Needs: Need-based GoI grant upto Rs.5 lakh per project is provided to
National Entrepreneurship Development Institutions (EDIs) viz. National Institute of Small Industry
Extension Training (NISIET), National Institute of Entrepreneurship and Small Business Development
(NIESBUD), Indian Institute of Entrepreneurship (IIE), EDIs sponsored by the State Government, Small
Industries Service Institutes (SISIs) etc for undertaking activities aiming at empowerment of women.
Eligibility
 Be a legal entity with a minimum registration of three years.
 Having experience in thrift and saving programmes with Self-Help Groups (SHGs).
  Be engaged in income generation activities for women entrepreneurs.
 Have basic infrastructure, qualified support staff and services to undertake micro-enterprise
development for women.
 Prior experience in preparing project proposals on behalf of women entrepreneurs / women SHGs for
income generation activities and take loan from financial institutions for onward disbursement to them.
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8. PMKVY- Pradhan Mantri Kaushal Vikas Yojana
Pradhan Mantri Kaushal Vikas Yojana (PMKVY) is the flagship scheme of the Ministry of Skill Development
& Entrepreneurship (MSDE) implemented by National Skill Development Corporation.

The objective of this Skill Certification Scheme is to enable a large number of Indian youth to take up
industry-relevant skill training that will help them in securing a better livelihood.

This scheme helps in the improvement of working efficiency of daily wage earners by distributing monetary
rewards and awards, followed by providing free skill training to country's youth. Besides, providing the
training to the candidates, the government also issues the certificate and incentives to the candidates.

Features/Benefits of the Scheme

 PMKVY is the flagship program for imparting skill training and development for the youth.
 The scheme aims to cover the beneficiaries of around 24 Lakhs.
 Skills Training is conducted under the National Skill Qualification Framework(NSFQ).
 The average monetary benefit for the candidates under this scheme is 8000 Rupees.
 The PMKVY scheme is aligned with other schemes like Digital India, Make in India, Swachh Bharat
Mission.
 The training imparted under this scheme includes the Soft Skills Training, Work Ethics and Grooming
etc.
 To ensure the Training Centres are technology-driven to maintain high standards of quality.
 Placement assistance provides wage or self-employment to individuals trained and certified under the
PMKVY.

Eligibility Criteria for applying the PMKVY Scheme

 The candidates who are unemployed and the college dropouts are eligible for applying the scheme.
 Candidates applying for the scheme should have the valid Identity Proof like Aadhar Card to get
qualified for the skill development program.
 The candidate should be an Indian Citizen.
https://www.pmkvyofficial.org/
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9. DST- Department of Science & Technology and Schemes of DST
Department of Science & Technology (DST) was established in May 1971, with the objective of promoting
new areas of Science & Technology and to play the role of a nodal department for organising, coordinating
and promoting Science & Technology activities in the country.

Responsibilities of DST
 Formulation of policies relating to Science and Technology
 Promotion of new areas of Science and Technology with special emphasis on emerging areas like bio-
fuel production, processing.
 Undertaking or financially sponsoring scientific and technological surveys, research design and
development
 Support and Grants-in-aid to Scientific Research Institutions, Scientific Associations and bodies
 Matters commonly affecting scientific and technological departments/organisations/ institutions e.g.
financial, personnel, purchase and import policies and practices
 Promotion of Science and Technology at the State, District, and Village levels for grass- roots
development through State Science and Technology Councils and other mechanisms.
 Application of Science and Technology for weaker sections, women and other disadvantaged sections of
society
Schemes of DST
DST has several schemes under the heads:
1. Scientific & Engineering Research
 Mega Facilities for Basic Research
 Innovation in Science Pursuit for Inspired Research (INSPIRE) programme
 Programme for Science Students
 National Science & Technology Management Information System (NSTMIS)
2. Technology Development
 Technical Research Centres Programme
 Climate Change Programme
 Patent Facilitation Programme (PFP)
3. International S & T Cooperation
4. S&T for Socio Economic Programme
 National Council for Science & Technology Communication (NCSTC)
 Science For Equity Empowerment and Development (SEED)
 State Science & Technology Programme
5. Technology Missions Division
 Technology Mission Programme on Water and Clean Energy
 Nano Science & Technology Mission
 National Super Computing Mission
6. Women Scientists Programs
 Gender Advancement for Transforming Institutions (GATI)
 Women Scientists Scheme
 Knowledge Involvement in Research Advancement through Nurturing (KIRAN)
 Consolidation of University Research for Innovation and Excellence in Women Universities
(CURIE)
https://dst.gov.in/
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10. DIPP-Department of Industrial Policy & Promotion (DIPP)
DIPP was set up in 1995. It is a central government department under the Ministry of Commerce and
Industry in India.
The Department of Industrial Policy and Promotion is to monitor industrial growth, formulate and
implement India’s industrial policy, formulate and amend Foreign Direct Investment (FDI) policy, engage
in activities that promote industrial development, particularly in remote areas, and formulate and
implement policies regarding Intellectual Property Rights.

Features
 Boosting Startup growth- The department is the nodal body for the Startup India initiative, which aims
to make India a hub for startups.
 The Department studies, assesses and forecasts the need for technological development in specific
industrial sectors in particular.
 It is also responsible for facilitating and increasing the FDI inflow in the country.
 For encouraging acquisition of technological capability in various sectors of the industry through
liberal foreign technology collaboration regime.
 It plays an active role in investment promotion through dissemination of information on investment
climate and opportunities in India and by advising prospective investors about licensing policy and
procedures, foreign collaboration and import of capital goods etc.
 The Department is also responsible for Intellectual Property Rights relating to Patents, Designs, Trade
Marks and Geographical Indication of Goods and oversees the initiative relating to their promotion and
protection.
 Framing E-Commerce Rules-The department is currently framing the e-commerce policy, a set of rules
aimed at streamlining and regulating the digital business ecosystem.
https://www.mygov.in/group/department-industrial-policy-and-promotion-dipp
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11. MSME Single Point Registration Scheme.
Various PSUs (Public Sector Undertakings) assist the government in its goal of development of the
MSME (MIicro, Small and Medium Enterprises) sector. One such PSU is the National Small Industries
Corporation or NSIC.
Single Point Registration Scheme or SPRS is a developmental scheme of NSIC to assist the MSMEs in
India. By opting for this scheme, the MSMEs having an NSIC registration scheme can get exempt from
Earnest Money Deposit (EMD) in Government Purchases.

Earnest Money Deposit or EMD is the money taken from a bidder as the security deposit before any
bid, in order to assure his seriousness in the deal.
However, if a bidder has NSIC registration in the Single Point Registration Scheme, he will be exempted
from paying the EMD during a government bid.

Eligibility
 Micro and Small Enterprises (MSEs) involved in manufacturing & Services are eligible for
registration.
 Traders are not eligible for registration under this Scheme.
 The NSIC Registration Certificate under Single Point Registration Scheme is valid for 2 Years. It
will be reviewed and renewed every 2 years after a thorough verification.
Benefits of getting NSIC- single point registration
 Total Exemption from Earnest Money Deposit (EMD) in government bids.
 Government Tender Sets are issued to the eligible MSEs absolutely free of cost.
 Under the SPRS scheme, 358 categories of goods have been marked by the government for purchase
from the Small scale units only.
 The Government has also earmarked a minimum limit of 25% of the total annual purchases of Goods
& services by Union Ministries, Departments, and PSUs from MSEs only.
 Out of this 25% limit, 4% of supplies are reserved for purchase from the units owned by the SC/STs.
Besides, 3% is reserved for purchase from women enterprises.
https://www.nsic.co.in/schemes/Single-Point-Registration
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12. Ministry of Agriculture and Farmers-The Venture Capital Assistance Scheme
Venture Capital Assistance is financial support in the form of an interest free loan provided by
SFAC(Small Farmers Agri-Business Consortium) to qualifying projects to meet shortfall in the capital
requirement for implementation of the project.

Objectives of the Scheme

 To support the entrepreneurs in setting up an agribusiness venture which is approved by the banks,
financial institutions regulated by the RBI.
 To promote training and visits of agri-entrepreneurs in setting up agribusiness projects.
 To provide assured markets to the producers to increase rural income and employment.
 To assist the backward linkages of agribusiness projects with producers.

Features of the Scheme

 The venture capital will be provided only for the projects qualified by the banks/ financial institution
funding the project.
 As per the repayment schedule, the venture capital has to be repaid to the SFAC within the stipulated
period.
 The SFAC will provide the venture capital to the agri-business projects in the form of soft loans.
 Individuals, farmers, agri-preneurs, self-help groups, proprietary firms, agriculture graduates, etc. are
eligible for loans under this scheme.
http://sfacindia.com/
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13. GOI- Pradhan Mantri Mudra Yojana
Pradhan Mantri MUDRA Yojana (PMMY) is a scheme launched by the Hon’ble Prime Minister on April
8, 2015 for providing loans up to 10 lakh to the non-corporate, non-farm small/micro enterprises.

These loans are given by Commercial Banks, RRBs, Small Finance Banks etc.
MUDRA(Micro Units Development & Refinance Agency Ltd.) has created three products to signify the
stage of growth / development and funding needs of the beneficiary micro unit / entrepreneur.
 'Shishu', - Covering loans Upto Rs. 50000.
'Kishore' – Covering loans above Rs. 50000 upto Rs. 5 lakhs.
and 'Tarun' - Covering loans above Rs. 5 lakhs upto 10 lakhs.

Objective Of The Scheme

 Business loan for Vendors, Traders, Shopkeepers and other Service Sector activities.
 Working capital loan through MUDRA Cards
 Equipment Finance for Micro Units
 Transport Vehicle loans

Scheme covers sectors such as:

 Land Transport Sector / Activity - Which will inter alia support units for purchase of transport vehicles
for goods and personal transport such as auto rickshaw, small goods transport vehicle, 3 wheelers, e-
rickshaw, passenger cars, taxis, etc.
 Community, Social & Personal Service Activities - Such as saloons, beauty parlours, gymnasium,
boutiques, tailoring shops, dry cleaning, cycle and motorcycle repair shop, DTP and Photocopying
Facilities, Medicine Shops, Courier Agents, etc.
 Food Products Sector - Support would be available for undertaking activities such as papad making,
achaar making, jam / jelly making, agricultural produce preservation at rural level, sweet shops, small
service food stalls and day to day catering / canteen services, cold chain vehicles, cold storages, ice
making units, ice cream making units, biscuit, bread and bun making, etc.
 Textile Products Sector / Activity - To provide support for undertaking activities such as handloom,
powerloom, chikan work, zari and zardozi work, traditional embroidery and hand work, traditional dyeing
and printing, apparel design, knitting, cotton ginning, computerized embroidery, stitching and other
textile non garment products such as bags, vehicle accessories, furnishing accessories, etc.

Borrowers, who wish to avail assistance under Pradhan Mantri MUDRA Yojana (PMMY), can approach
the local branch of any of the financial institutions in their region - PSU Banks, Regional Rural Banks and
Cooperative Banks, Private Sector Banks, Foreign Banks, Micro Finance Institutions (MFI) and Non
Banking Finance Companies (NBFC).
https://www.mudra.org.in/
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14. Small Industries Development Bank of India(SIDBI)
Small Industries Development Bank of India (SIDBI) was set up by an act of parliament, it commenced
operations in April 2 ,1990.
It acts as the principal financial institute for promotion, financing and development of industry in the
small scale sector and to co-ordinate the functions of the institution engaged in the promotion and
financing or developing industry in the small sector.

The objectives of SIDBI are:

1. Promotion , financing and developing of industry in the small scale sector.
2. Co-coordinating the functions of other institutions engaged in similar activities.
3. Setting up to new projects
4.Expansion, diversification, modernization, technology up gradation, quality improvement rehabilitation
of existing units.
5. Strengthening Marketing capabilities of SSI units.
6. Development of infrastructure for SSI units.

Functions of SIDBI:
1. Refinances the credits and loans granted by Financial institutions to small scale industries.
2. To initiate the establishment, expansion, diversification, modernization, technology up gradation,
quality improvement rehabilitation of existing units.
3. SIDBI also extend direct assistance to the SSI for exporting goods.
4. SIDBI also assists the SSI units such as Factoring and Leasing.
5. SIDBI helps in National small scale industries making Hirepurchase, leasing and marketing activities.
6. SIDBI provides various soft loans like Mahila vikas nidhi, National enquiry fund, Mahila udayam
Nidhi. And also provides seed capital to the start ups.
7. SIDBI took a step ahead in order to renovate the SSI units by instituting advanced technology in their
operations.
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15. Sustainable Finance Scheme
SIDBI has introduced a new scheme called the Sustainable Finance Scheme for funding sustainable
development projects that contribute energy efficiency and cleaner production but not covered under the
international or bilateral lines of credit.

All sustainable development projects such as renewable energy projects, Bureau of Energy Efficiency
(BEE) star rating, green microfinance, green buildings and eco-friendly labelling, etc. are applicable for the
scope of this scheme.
Objectives of the Sustainable Finance Scheme
 New or existing Micro, Small, and Medium Enterprises (MSMEs) that come under the MSME Act,
2006, will be eligible for funding under the scheme.
 In the case of existing MSMEs, they must be financially stable, have a proven track record, and
must have no defaults with banks or institutions.
 Funding will be provided to units that have a minimum credit rating of investment grade as per the
internal credit rating model.
 Funding is provided for biomass gasifier power plants, mini hydel power projects, wind energy
generators, solar power plants, etc., for non-captive or captive use.
 Funding is provided for MSMEs that invest in waste management.
 Assistance is provided to OEMs (Original Equipment Manufacturers) that manufacture cleaner
production and energy-efficient equipment.
Features of Sustainable Finance Scheme
 This scheme covers up to 90% of the project cost as submitted by the MSME. The minimum loan
amount is Rs.10 lakh and the maximum loan amount cannot exceed Rs.150 lakh per eligible
borrower under this scheme.
 The repayment tenure shall not be more than 36 months for loans up to Rs.50 lakh and 60 months
for loans beyond Rs.50 lakh
 Interest rates on the loan are fixed based on the internal rating of the MSME by SIDBI.
 A margin of 10% is to be borne by the borrower.
 Hypothecation of the assets purchased serves as the security for the loan.
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Industrial Estate
> Industrial estate are specific areas zoned for industrial activity
> In which infrastructure such as roads, power, and other utility services is provided to facilitate the
growth of industries and to minimize impacts on the environment

Features of Industrial Estate

1. It is a tract of land subdivided and developed into factory, plots or sheds
2. It is a planned clustering of industrial units
3. It maybe developed in urban, semi urban or rural areas
4. It is set up by government, co-opeartives or by private agencies
5. Provides common infrastructural facilities

Objectives of Industrial Estate

1. Provides infrastructure and accomodation
2. To encourage the development of SSI in the country
3. To spread the industries in rural and backward areas
4. 4. Encourage ancillarisation in surroundings of major industrial units
5. To develop entrepreneurship by creating environment suitable to establish industries
6. To accelerate employment opportunities.
Types of Industrial Estates
• On the basis of functions
- Conventional (General): This type of industrial estate provides accommodation to wide variety and
range of industrial concerns. In India general type estate are very popular.
- Special Type: This type of estate is constructed for specific industrial units, which are vertically or
horizontally interdependent.
• On the basis of the organisational set up
- Government- the respective state government have started various industrial estate to help
entrepreneurs.
- Private- the industrial estates owned by private players. They are given on rental basis.
- Co-operative- these industrial estates are developed by co-operative sectors.
On the basis of other variants
Ancillary Industrial Estate: Only small industries which are ancillary to a particular large industry are
housed in this estate.
Functional industrial Estate- this type of estate consists of units manufacturing uniform products.
- The workshop-bay: This is usually located in the shopping centres to provide space for repair shops
and enterprises such as job-printing.