The main objectives for the creation of Industrial Estates are two-fold, viz., to promote rapid development of small-scale industries and to facilitate industrialization in economically backward areas.

During the Third Five-Year Plan, Government of Maharashtra decided to establish 56 industrial estates in addition to the 10 already in existence. The proposed expenditure provided in the plan for the Industrial Estate at Dhulia was Rs. 1,50,000. As many as 31 sheds were to be constructed of which 21 were to be completed before the end of the plan.

Besides, a co-operative society under the name "Udhyognagar Sahakari Society Limited", has been registered at Dhulia. Its scheme comprised construction of six sheds of 30' X 30" (B type). The total estimated cost was Rs. 10,14,000. The society had collected a share capital of Rs. 88,000 to which the Government contributed Rs. 66,000. The Life Insurance Corporation also sanctioned a loan of Rs. 1,98,000 for this scheme. The society had an area of about 20 acres under its jurisdiction.