How one of India’s first industrial estates was opened at Guindy to drive economic growth

Established in 1958, Guindy Industrial Estate in Chennai played a pivotal role in India's industrial growth.

The prime focus of India’s second Five Year Plan (1956-1961) was a big push to the economy through rapid industrialisation. This was when the spadework was done for establishing an industrial estate in Tamil Nadu. The efforts led to the establishment of the Guindy Industrial Estate, Chennai. This was one of the first industrial estates to be opened in India, along with the Okhla Industrial Estate in New Delhi in 1958.

“The government proposed to open the estate in Kodambakkam, but as the City Improvement Trust wanted the site for housing and since the government found the Guindy site more suitable for the purpose they had in view, they decided on the change of location,” said a report published in The Hindu dated October 9, 1955. The report further said, “The government have decided to acquire lands in Guindy opposite to the railway station for locating the proposed Rs. 60-lakh industrial estate. The estate, according to the scheme, will provide necessary factory space and facilities to small producers by way of power, water supply, housing and common industrial aids for production, on rent or lease.”

Another article published in 1956 mentioned, “In the Guindy estate, it is proposed to undertake purchase of raw materials in bulk and distribute them at cost price to the small units to be housed there. It is also proposed to set up, in a plot of 30 acres adjoining the estate, service centres for the manufacture of surgical instruments, scientific glass apparatus, laboratory equipment, apparatus, goods, hand tools and electrical goods. Facilities will be available at the centres to test the products of industries and to undertake certain operations requiring costly machinery. The Chemical Testing and Analytical Laboratory of the Industries Department will also be shifted to that place.”

The total estimated cost of the estate was ₹70.03 lakh, and the sum was given by the Union government as a loan repayable in 20 years.

The first phase of the Guindy Industrial Estate was inaugurated by Prime Minister Jawaharlal Nehru in 1958. The next phase was inaugurated by Union Minister for Industry Lal Bahadur Shastri in 1959. R. Venkatraman, State Minister in charge of Industries, Transport, Power and Labour, along with T. K. Palaniappan, Director of Industries and Commerce, and V.S. Raghavan, Joint Director of Industries and Commerce, played a key role in the project.

While inaugurating the industrial estate, Nehru had emphasised the important place of small industries in the economy and in the plans for development and said industrial estates were of immense help in providing modern techniques to those running small industries.

C. Subramaniam, the then State Finance Minister, said that this was the first estate that the government was opening and hoped it would soon prove to be the nerve centre of other activities which might grow not only in the city but throughout the State.