Why in the news?

  • The Union Ministry of Commerce and Industry launched Industrial Park Rating System 3.0 to benchmark industrial parks and boost Make in India  initiative.

Industrial Park Rating System 3.0

  • What is it?:  It is an initiative by the Department for Promotion of Industry and Internal Trade (DPIIT), Government of India, with technical support from the Asian Development Bank (ADB).
  • Goal:  To benchmark industrial parks/estates/clusters for infrastructure, services, environment & safety, to improve competitiveness, transparency, attract investment, help states/UTs identify gaps.
  • What is new in IPRS 3.0:
    • Sustainability & Green Infrastructure: More emphasis on parks being environmentally sustainable, green norms, etc.
    • Logistics Connectivity: Better evaluation of how well parks are connected (road, rail, ports, last-mile connectivity) for smoother supply chains.
    • Digitalization: Digital tools or services in parks; perhaps online services, smart infrastructure.
    • Skill Linkages: How well parks connect with skill development institutions, training to workers etc.
    • Enhanced Tenant Feedback: More weight to what tenants (the companies operating in the parks) say- their satisfaction etc.
  • Pillars of IPRS:
    • Internal Infrastructure & Utilities (roads within park, water, power, waste, etc.) 
    • External Infrastructure & Connectivity (access to transport, links to ports/airports, last mile)
    • Business Support Services & Facilities (single window clearances, facilitation, online services, dormitories, etc.)
    • Environment & Safety Management (safety, environmental norms, monitoring, disaster management)
  • Significance:
    • Helps investors make informed choices (which industrial parks are better in terms of infrastructure, logistics, environment etc.). Transparent benchmarks.
    • Encourages healthy competition between states / UTs to improve industrial park infrastructure.
    • Identifies gaps/downside in parks which require policy or infrastructural intervention. Helps central/state governments plan where investment is most needed.
    • Supports “Make in India” initiative by striving to bring industrial infrastructure up to international standards, improving India’s global competitiveness.
    • Aids employment generation, improves ease of doing business.
  • Challenges
    • Implementation: Ensuring accurate, up-to-date data especially for external connectivity, environment metrics.
    • Participation: Getting all states / private parks to participate and get rated.
    • Capacity: Some parks may lack financial or institutional capacity to meet higher benchmarks (especially in remote or less-developed areas).
    • Follow-through: Rating is fine, but improvement requires investment, policy incentives, monitoring.
    • Balancing sustainability vs growth: As parks strive to meet green norms, cost may increase; ensuring affordability matters.