Factories turn into townships as MP industries build worker housing

Madhya Pradesh expand, industries in Jetapur, Ratlam, Dhar, Ujjain and Bhopal are increasingly developing residential blocks within their factory premises for employees, reflecting a growing shift towards integrated industrial campuses.

Several companies have informed the industries department of their plans to build workforce housing on their allotted industrial land, as employers look to reduce commuting time and improve employee retention.

The trend is gaining momentum across established and emerging industrial clusters, where companies say quality accommodation has become as important as road, power and water infrastructure. For workers, the move promises shorter commutes, lower transportation costs and better access to workplace facilities, while industries expect improved productivity, lower attrition and greater ease in attracting skilled manpower.

Himanshu Prajapati, executive director, MPIDC, Indore, said demand for residential development inside industrial areas has risen sharply in recent months.

“As per the norms, industries can develop residential blocks on up to 5 per cent of the land allotted to them. Many industries in newly developed industrial areas have already constructed residential accommodation within their allotted land and the demand for such facilities is increasing,” he said.

Industry representatives said the shortage of quality housing near factories has become a key concern as fresh investments flow into sectors such as automobiles, engineering, pharmaceuticals, textiles and food processing.

Gautam Kothari, president, Pithampur Audhyogik Sangathan, said affordable housing near workplaces has become a key requirement for both industries and employees.

“Companies that provide residential facilities are finding it easier to retain skilled manpower and reduce employee turnover. As new industrial clusters develop away from city centres, integrated campuses with housing and basic amenities will be essential for sustaining industrial growth,” he said.

Companies are increasingly finding that housing is an important factor in attracting workers from other districts and states.

Rajesh Rathod, executive director, MPIDC, Ujjain, said the upcoming industrial belts at Ratlam, Pipalrawan and Polaykalan are being planned with ready-to-move accommodation for employees and the workforce within the industrial area itself.

“The objective is to create self-sustained industrial ecosystems where workers can live close to their workplace, improving convenience as well as industrial efficiency,” he said.