Context

• Recently, the Union Minister of Commerce and Industry launched the Industrial Park Rating System (IPRS) 3.0 in New Delhi. Developed by the Department for Promotion of Industry and Internal Trade (DPIIT) with support from the Asian Development Bank (ADB), the IPRS 3.0 aims to revolutionize the way India builds, assesses, and sustains its industrial infrastructure.

What is the Industrial Park Rating System (IPRS)?

The Industrial Park Rating System is a flagship initiative of DPIIT, Ministry of Commerce and Industry. It was conceptualized to enhance the transparency, competitiveness, and investment attractiveness of India’s industrial ecosystems by benchmarking industrial parks.

• IPRS 1.0 was launched in 2018, and IPRS 2.0 in 2020.
• These versions focused on mapping infrastructure, land availability, and performance of industrial parks across India.
• IPRS 3.0 is a significant upgrade, introducing more comprehensive evaluation parameters.

Objectives of IPRS 3.0

Key Features of IPRS 3.0

1. Expanded Framework with New Parameters

• Sustainability & Green Infrastructure: Focus on renewable energy use, waste management, water recycling.
• Logistics Connectivity: Proximity to ports, highways, railways, and multimodal logistics.
• Digitalization: Smart services, IoT-enabled infrastructure, online single-window clearance.
• Skill Linkages: Integration with ITIs, skilling programs, training centers.
• Tenant Feedback: Enhanced role of industrial tenants in evaluating services and facilities.

2. Grading & Categorization

Industrial parks will be ranked into three categories:

• Leaders – Exemplary parks with world-class infrastructure.
• Challengers – Performing well but with room for improvement.
• Aspirers – Emerging parks with potential.

3. Use of Technology

• Geospatial mapping, AI-enabled data collection, and dynamic dashboards.
• Improved user interface for developers and investors to interact with park data.

Significance of IPRS 3.0 in Indian Economy

Boost to ‘Make in India’ & Ease of Doing Business

• High-performing parks under IPRS 3.0 will become investment magnets.
• Helps reduce turnaround time, improve logistics efficiency, and reduce costs.

Job Creation & MSME Support

• By improving industrial infrastructure, it supports expansion of Micro, Small, and Medium Enterprises (MSMEs) and generates employment.

Private Sector Confidence

• Rating brings transparency and predictability, helping both domestic and global companies choose reliable industrial hubs.

Environmental Commitment

• Encourages parks to adopt sustainable and climate-resilient practices, supporting India’s Net Zero 2070 target.

Way Forward

IPRS 3.0 is expected to become the cornerstone for India’s goal of becoming a $5 trillion economy. It will act as a strategic planning tool not just for governments, but also for developers and investors. Going ahead:

• Continuous updating of data and stakeholder feedback will be crucial.
• Integration with schemes like PM Gati Shakti, PLI (Production Linked Incentive), and Logistics Policy will further enhance IPRS utility.
• DPIIT may explore extending IPRS beyond traditional parks to textile parks, pharma clusters, electronics zones, etc.

Conclusion

• The launch of Industrial Park Rating System (IPRS) 3.0 marks a decisive step towards creating a transparent, data-driven, and sustainable industrial infrastructure ecosystem. With its enhanced parameters and categorization model, IPRS 3.0 will not only attract global investments but also empower Indian industries to thrive in a globally competitive environment.