Industrial Park                                                       Back To Home
Business opportunities in India
An industrial park is a developed township of industries that are plotted or constructed for the purpose establishing industries, manufacturing activities and their related services. An industrial park is an area zoned and planned for the purpose of industrial development. In Hong Kong, industrial parks are usually known as industrial estates. In the United Kingdom small industrial parks containing multiple units all of the same style are known as trading estates. A more "lightweight" version is the business park or office park, which has offices and light industry, rather than heavy industry.



Industrial parks are usually located outside the main residential area of a city and normally provided with good transportation access, including road and rail.[1] Industrial parks are usually located close to transport facilities, especially where more than one transport modes coincide: highways, railroads, airports, and ports.

1.     FDI up to 100% is permitted under the automatic route in Industrial Parks.

2.     In 2005, vide Press Note 2(2005), the Government of India permitted FDI up to 100% on the automatic route in Construction development projects, etc. prescribing therein, inter-alia, the conditions for minimum capitalization, minimum area requirements and lock-in of original investment.

3.     The Government has considered the issue of whether the conditions prescribed for construction development projects vide Press Note 2(2005) should apply to Industrial Parks where FDI up to 100% was permitted since 2000.

4.     Definitions

4.1   "Industrial Park" is a project in which quality infrastructure facilities in the form of plots of developed land or built up space or a combination with common facilities, is developed and made available to all the allottee units for the purposes of industrial activity.

4.2   "Infrastructure" refers to facilities required for functioning of units located in the Industrial Park and includes, roads (including approach roads), water supply and sewerage, common effluent treatment facility, telecom network, generation and distribution of power, air conditioning.

4.3   "Common Facilities" refer to the facilities available for all the units located in the industrial park, and include facilities of power, roads (including approach roads), water supply and sewerage, common effluent treatment, common testing, telecom services, air conditioning, common facility buildings, industrial canteens, convention/conference halls, parking, travel desks, security service, first aid center, ambulance and other safety services, training facilities and such other facilities meant for common use of the units located in the Industrial Park.

4.4   "Allocable area" in the Industrial Park means-  

(a) in the case of plots of developed land- the net site area available for allocation to the units, excluding the area for common facilities.

(b) in the case of built up space- the floor area and built up space utilized for providing common facilities.

(c) in the case of a combination of developed land and built-up space- the net site and floor area available for allocation to the units excluding the site area and built up space utilized for providing common facilities.

4.5  "Industrial Activity" means manufacturing, electricity, gas and water supply, post and telecommunications, software publishing, consultancy and supply, data processing, database activities and distribution of electronic content,  other computer related activities, Research and experimental development on natural sciences and engineering, Business and management consultancy activities and Architectural, engineering and other technical activities.

Guidelines for FDI in Industrial Parks

5.   Government of India has now decided to issue the following guidelines to clarify that FDI up to 100% under the automatic route would be allowed both in setting up and in established industrial parks and would not be subject to the conditionalities spelt out in Press Note 2(2005) provided the Industrial Parks meet with the under-mentioned conditions:

i.     it would comprise of a minimum of 10 units and no single unit shall occupy more than 50% of the allocable area;

ii.    the minimum percentage of the area to be allocated for industrial activity shall not be less than 66% of the total allocable area.

 Department of Industrial Policy & Promotion, Ministry of Commerce & Industry

New Delhi, 12th March, 2008 (Press Note No.3/2008)
New opportunities:
Earlier, Foreign Direct Investments in the real estate was restricted to development of industrial parks, hotels, integrated townships and SEZ's. But on March 3, 2005, the Government of India replaced the integrated township policy to permit Foreign Direct Investments upto 100% in townships, housing, built-up infrastructure & construction - development projects, under automatic route (Press Note 2 (2005 series)). This amendment broadened the scope of FDI in Indian real estate arena & opened path towards investments in:

  • Townships
  • Housing
  • Commercial Premises
  • Hotels
  • Resorts
  • Hospitals
  • Industrial parks
  • Educational Institutions
  • Recreational Facilities & SEZ's etc

Fiscal Incentives for Industries commencing production before 30th March 2010:

There are number of fiscal incentives and subsidies by the government as per different policies of different states.

Our Services:

We identify and provide land that legally meet with provisions of Industrial park and verify the title of land.

Prepare draft plan in coordination with approved architect, engineers and other professionals, and make project report as per plan. Project report needs market feasibility report and market survey from independent third party consultant. 

Provide all legal services in forming, getting approval and establishment of Industrial park.

Appoint and manage professionals and technical staff to develop infrastructure and take care all work should be done under the provisions of Industrial Park.


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