Industrial Area Planning and Management: Status, Needs and Challenges in India

July 6, 2009

Faculty of Planning and Public PolicyCEPT, Ahmedabad

www.cept.ac.inashwani@cept.ac.in

International Conference on ‘Eco-Industrial Parks’

HICC, HITEX, Hyderabad

Presented by:Ashwani Kumar

Utpal Sharma Anil Kumar Roy

CEPT, AHMEDABAD

Indian Industrial Sector : Paradigm Shift

• Economic, Environmental and Social priorities

• 1948 and 1956: Industrial Policy Resolution • 1951 : Industries (Development and Regulation)

Act• 1977 & 1980 : Statement of Industrial Policy • 1991 : New Industrial Policy (NIP)Policy instruments

FDI globalized regimeTax holidaysIndustrial packagesIndustries corridorsExport-import policies.

NatureTypologyScaleRaw material Employment Technology

Perspective of Five Year Plan on Industrial Development in India

1st Backward Area and Balanced Development of Industries

2nd Basic/Heavy Industries and labour intensive

3rd Balanced Regional Development and license policy; nuclei growth centers

4th Further incentive of Industrial dispersal into rural areas

5th Strengthening of machinery for integrated approach supported with studies

6th(On

wards) Clusters and backward area incentives, Exports promotion, tax benefits, Technology upgrdation, production efficiency

11th Fiscal Incentives, Economic Zones, Infrastructure, logistics, Private participation

Typology of Industrialization

• Industrial clusters, growth centers • Foot loose Large, medium and Small industries • Industrial Estates/Areas

• Free Trade Zones/ Export Processing Zones (EPZs), EPIP

• Industries Townships/Development Authorities• Software Technology Parks/Electronic Hardware

Technology Parks, IT and ITES • Special Economic Zones, Special Investment

Regions • Dedicated industrial/freight corridors

Industrial Estate Development Objectives

The objectives of promoting the Industrial Estates were:

To create essential factory sheds or land for setting of industries units in orderly and organized manner.

Provide the basic facilities in these centers i.e power, lighting, banking, telecommunications, shopping , social facilities etc.

To stimulate the industrialization in backward and tribal areas

To develop the Small Scale Industries

Approach adopted?Reservation of Items for SSI units

Financial Assistance in form of capital risk, long term and medium term loans, sort term working capital by State Financial institutions

Tax benefits, subsidized infrastructure facilities, etc.

Structure Large and medium• More than 200,000 Factories

• A work force of 14 million workers, and 4 million technical personnel

• Manufacturing currently represents 24% of gross domestic product

SSI/Cottage • Grown from 80,000 units in the

late 1940s more than 3.3 million SSI (2004-05) working units with 18 millions employees and with more than 2 million cottage industries

• SSI sector alone contributes 7% to India’s GDP.

Year No. of units

(million nos.)

Production

(Billion Rs. )

Employment

(Million nos.)

Exports (Billion Rs.))

1993-94

2.38 2416.48 13.93 253.07

1994-95

2.57 2988.86 14.65 290.68

1995-96

2.65 3626.56 15.26 364.70

1996-97

2.80 4118.58 16.00 392.70

1997-98

2.94 4626.41 16.72 444.42

1998-99

3.08 5206.50 17.15 489.79

1999-00

3.21 5728.87 17.85 542.00

2000-01

3.37 6454.96 18.56 599.78

Performance of Small Scale Sector

(at current prices)(Ref: 2004-05 Annual Report of SSI Ministry)

EoUs in SEZs

• 439 SEZs formally approved and more than 200 notified

• Total land area involved in approved SEZ is 60168 hectares

• Areas with State Industrial Development Corporations in 97 approved SEZs 20,000 hectares

• Most of Notified SEZs are of IT/ITES nature

• Total Export (2007-08) from EoU (in and outside SEZs) was Rs. 766.15 billion

Problems of Industrial Estates (IE)? Problems of Industrial Estates (IE)?

Siting

Lack of adequate infrastructure

Environmental protection measures

Logistic support

Landuse Control and Land Management

Lack of PlanningIE are usually located in areas which are not having any protection to natural water environment

Sensitive receiving EnvironmentNatural water is precious commodity for the human consumption in the rural areas, which got effected due to pollutionNecessitate regulation/minimization of pollution Enforced regulation

Logistics SupportInter and Intra country transport, Warehousing, Systems

Landuse control/ Land Management Zonation, Availability of suitable land

Genesis of Environmental Issues in SSIs

• Due to the policies initiated, the IE dominated by the SSI and lead areas lead to environmental pollution, hazards and risk:– Inadequate technological understating

(high waste generation and lax attitude towards treatment)

– Lack of space for implementation of pollution control measure

– Ineffective process supervision and management

– Lack of consultative mechanism

– Non-availability of Treatment technologies for SSI

– Affordability

– In-effective regulation due to overstressed regulatory machinery and undesirable political interference etc

Hotspots in India: Water

Source: CSE Report based on CPCB Norms

Prevailing Environmental conditions in Industrials Estates

Soil Contaminated, degraded, eroded and devoid of life formFlora and Fauna

Lost Biodiversity, un-protected, development driven degradation

Water Bodies

Polluted lakes/rivers/canals, drying -up due to lack of water availability choking with solid waste, loss of natural drainages Industries Mixed within residential areas, poor working conditions, inadequate space for environmental infrastructure, in-efficient use of resources, disposal of waste

Water In-adequate drinking water, polluted ground waterAir Polluted from Industrial, Vehicular and commercial

emissions, NoiseRoads Inadequate and narrow, congested, poor quality,

encroached , parking Waste water

huge quantity, inadequate collection, partial treatment, disposal in natural water-bodies

Solid waste Rapidly increasing quantity, inadequate collection, insanitary plots, no treatment, insanitary disposal

IEP Components

• Identification and delineation of suitable IE sites [landuse sensitivity, pollution potential, environmental sensitivity, land potential);

• Generation of a suitable industrial development format (nature, scale/size, type)

• Social and environmental impact assessment and management

(risks prediction, spatial influence)

• Infrastructure Master Plan [physical, logistical, environmental and social]

• Landuse Zonation plan [development zone, buffer zone, infrastructure corridors]

• Development (Landuse) controls regulations; and • Information, Communication and Telecommunication plan

Industrial Estate Planning (IEP)A sustainable development step

Major Challenges

Lack of advocacy for planned industrial development;

Low capacity for physical & infrastructure planning, development and management at par with international standards;

Acute crunch of trained human resources;

Non-supportive policy regime;

Inadequate facilities, allied amenities in the Industrial areas;and

Lack of capacity of the industrial developers

Tools and Techniques for IEP

Information Systems (GIS/MIS)

Sustainability Analysis

Climate Risk Assessment

Industrial Hazard/Risk Assessment

Environmental Impact

Assessment

Industrial Ecology tools

Recourse Flow Analysis

Modeling

Projections and Predictive

Site Assessment

Spatial Planning

Tool and Techniques

A R C H I T E C T S A N D P L A N N E R SVASTU SHILPA

CONSULTANTS

CYBERABAD DEVELOPMENT PLAN

EXISTING SITE CONDITIONS PROPOSED DEVELOPMENT PLAN

CYBERABAD : PROPOSED STRUCTURE PLAN

A R C H I T E C T S A N D P L A N N E R S

VASTU SHILPA

CYBERABAD : PROPOSED FSI VARIATIONS

FSI GR. FLOORS BLDG HTS.X COV. (%) WITH OUT

PARKING

1.0 30-50 2-3 6-9 M1.25 30-40 3-5 9-15 M1.5 25-30 4-6 12-18 M1.75 20-30 6-9 18-27 M3.0 20-30 10-15 30-45 M3.5 15-25 14-24 42-72 M4.0 18-25 16-40 48-120 M

HITEC CITY

PROPOSED FSI

FSI 3.0

FSI 4.0FSI 3.5

RAJGARI

SUVALI

HAZIRA

MORA

KAVAS

LIMLA

BHATPOR

ICCHAPORE

TO DUMAS

AMENITIES WITH OPEN SPACE

VILLAGE BOUNDRYEXISTING ROADWATERBODY

EXISTING RAILWAY

SUDA BOUNDRYHNA BOUNDRY

PROPOSED MASTERPLAN AREA

HIGH TENSION LINE

HADA BOUNDRY

GAMTAL

LARGE SCALE INDUSTRYMEDIUM SCALE INDUSTRY

SMALL SCALE INDUSTRY

PROPOSED RESIDENTIAL

PROPOSED TRANSPORTATION HUBPROPOSED AMENITIES

COMMERCIALOPEN SPACEGREEN BELT

LEGEND

GAS LINEOIL LINE

RIVER TAPI

HNA BOUNDARY

SUDA BOUNDARY

HADA BOUNDARY

RELIANCE

L & T

NTPCKHIBCO

ONGC

VANSVA

SMALL SCALE

MEDIUM SCALE

MEDIUM SCALE

LARGE SCALE

TRANSPORT

TRANSPORT

DAMKA

BARBODHAN

DRAFT MASTER PLAN OF HAZIRALanduse Total Hazira

Region (ha)Total %

Industrial 1616.93 9.64

Residential 2991.44 17.83

Commercial 49.13 0.29

Roads 567.28 3.38

Railway 204.54 1.22

Transportation Hub 404.77 2.41

Amenities 477.39 2.84

Green Open Space 2898.12 17.27

Settlement 38.62 0.23

Waterbody 121.65 0.72

River 84.09 0.50

Forest 90.04 0.54

Existing Industries (outside HNA)

70.32 0.42

River bet 2051.93 12.23

Total Proposed Area 11666.24 69.52

HNA 3491.22 20.80

Tena Creek 379.96 2.26

River Tapi 1244.32 7.41

Total Master Plan Area

16781.74 100.00

For Urban Development and UrbanHousing Department, Govt. of Gujarat

Year: 2000

AMOD

VAGRA

ANKLESVAR

BHARUCH

ALIA BET

VAGRA- DAHEJ SUB REGIONAL PLAN GUJARAT

ENVIRONMENTAL ACTION PLAN

For Gujarat Ecology Commission(GEC), Vadodara

Year: 1997

LAND RISK ANALYSIS

HIGH

MEDIUM

LOW

FOREST

HIGH

MEDIUM

LOW

WATERBODIES

HIGH

MEDIUM

LOW

SLOPE

Planned and Regulated Development

POTENTIAL

THREAT

NATURE and HUMAN

RELATIVE LOCATION

Spatial Planning ?

Land Use Pattern in the Growth Centre Region – Pasighat, Arunachal Pradesh

NEDFi, Guwahati (for all the North Eastern

States)Central

Government

Department of Industries Department

of Finance

Other Departments

of Government

of Arunachal

Pradesh

Government of Arunachal Pradesh /

Nagaland

Arunachal Pradesh / NagalandGrowth Centres Development Corporation

(proposed)Objective:

Promotion, Operationalising and Maintaining the Growth Centre

Land Use Pattern in the Growth Centre Region – Pasighat, Arunachal Pradesh

Information Management

SOURCE INFORMATION INFORMATION INFORMATION

OF INFORMATION COLLECTION PROCESSING USERS

SYSTEM SYSTEMPromoting agency

Pollution control board

Industry

Data bankData

processing

Policy planning

group

Estate promoter

Pollution control devices

Legislative action

Industries of estate

Consent application forms

questionnaire

Reconnaissance survey

Wet inventory

Centre for Industrial Areas Planning and Management at CEPT

Aimed to focus on capacity building of human resource involved in designing/planning, development & management of large scale industrial development

Research and Development

Education

Training

Monitoring and Evaluation

Technical support

Documentation and Dissemination of information

Development Partnership/Networking

In the context of globalization, pursuance of this mission would mean adoption of innovative, flexible and transparent approaches, methodologies/delivery mechanisms that keep pace with rapidly changing environment.

Academic (Masters Programme) / course curriculum

1st YEAR – 1st SEMESTER 1st YEAR – 2nd SEMESTERFoundation Semester Technical Semester

No. Course Title No. Course Title1.1

1.21.3

1.4

1.5

1.6

Industrial Development: Social and Economical ImplicationsLand Use PlanningStatistics and Research MethodologyRemote Sensing and Geographical Information SystemStrategic Planning for Industrial DevelopmentStudio: Industrial Area Planning

2.1

2.2

2.3

2.4

2.5

2.6

2.7

Industrial Infrastructure Planning and DesignIndustrial Law, Policies and RegulationsLand Management and EconomicsEnergy Planning and ManagementIndustrialization in Global ContextElective:A. Industrial EcologyB. Industrial Risk and HazardStudio: Industrial Infrastructure Planning & Facility Management

2nd YEAR – 3rd SEMESTER 2nd YEAR – 4th SEMESTERSpecialization Semester Rsearch Semester

No. Course Title No. Course Title3.1

3.2

3.3

3.4

3.5

3.6

Environmental Assessment and RegulationsIndustrial Plan Implementation Strategies Development Appraisal and FinanceRegional Development and Resource PlanningElective:A. Environmental Infrastructure and ServicesB. Real EstateStudio: Industrial Risk Assessment and Management

4.14.2

Management PracticesResearch Thesis

Academic programme / course curriculum

What should be done?

Long terms vision creation for land management

Synchronisation of Policies

Human resource, knowledge base government-industry-academia interface

Intuitional strengthening, capacity building [project planning, infrastructure design & development, project implementation]

Facilitation AND Industrial Area Services Agencies

Resource Mobilization [financial management and economic analysis]

Thank You !

Wish you and your dear ones

“A safe, pollution free happy and joyful life “

Ashwani Kumar CENTRE FOR ENVIRONMENTAL PLANNING & TECHNOLOGYKASTURBHAI LALBHAI CAMPUSUniversity Road, Navrangpura, Ahmedabad – 380 009Phone no.: (079) 26302470, 26302740Email : ashwani_iitk03@yahoo.co.in, ashwani@cept.ac.in