65

CHAPTER: 3 :

LOCATION AND BRIEF HISTORY OF SATPUR

INDUSTRIAL AREA

Chapter Index

Page No.

3.1 Historical and Industrial importance of . 66

3.2 Location of Satpur Industrial Estate. 72

3.3 Geographical features of Nashik. 74

3.3.1 Demographic features (Population) 77

3.3.2 Climate 80

3.3.3 Industrial Facilities 81

3.3.4 Infrastructural facilities in Satpur Industrial Area 86

3.3.5 Growth of SSI in Satpur Industrial Area 99 66

CHAPTER : 3 :

LOCATION AND BRIEF HISTORY OF SATPUR

INDUSTRIAL AREA

3.1 Historical and Industrial importance of Nashik.

The name of has its origin in the story of Ramayana. o

Lord , his wife and Brother Lakshmana dwelled at Panchavati,

Nashik, during the period of their exile for 14 years. Lakshmana severed the nose (Nashik, a Sanskrit word) of Ravana's sister Shurpanakha who insisted to marry, Lakshamana. Thus, the Nashik was originated. Nashik is more famous as holy pilgrimage centre and as the head quarter of the territorial division. The district popularly known as Nasik is spelt as 'Nashik' in the Gazette notification of state and pronounced as 'Nashik' in Marathi.

Nashik is also known as Banaras of the south, because of its religious importance. In-fact Nashik is one of the four places in , where 'Nectar' the immortal drink of the Gods is supposed to have fallen at Trimbakeshwar according to Hindu mythology. Nashik situated on the bank of Godavari, has become a place of pilgrimage of the . All sacred places are ...

1) Panchavati : The word Panchavati actually means a place where five

banyan trees grown in a cluster. This is the place where Rama, Sita and

Lakshamana lived during their exile. Nashik, Panchavati was the home of

God and Goddesses. Its Jungles have sheltered sages, saints and devotees 67

like Ramdas Swami and Ahilyabai Holkar. Their meditations and devotions

have made this area sacred.

2) Ramkund : It is believed that, Lord Rama & Sita used to bathe in a tank

during their exile and hence it was called 'Ramkund'. The Ramkund was

rebuild in 1696 by Chitrarao Khatarkar. The holy kund is 27 Mts by 12 Mts.

In this Kund every Hindu wishes his/her ashes to be immersed so as to

attain Moksha and hence the bones of deceased parents are brought by

pilgrims to Ramkund.

3) Kalaram Temple : The temple of Lord Shriram was built in 1782 by

Sardar Rangrao Odhekar. A 5.18 meters high wall of plain dressed stone

surrounds a wall kept enclosure 74.67 meter long by 32 meter broad. There

is a gold plated, copper peak on the temple, which looks beautiful by day

and night. There are standing images of Lord Rama, Sita and Lakshmana of

black stone about two feet high finished.

4) Naroshankar Temple - Naroshankar's Temple also called as the temple of

Rameshwar. The temple was built in 1747 by Naroshankar Rajebahaddar of

Malegaon. There is a large bell in the middle of the temple, which is of 1.82

meter in circumference at the top. It is said to be brought from Basseen by

Sardar Naroshankar and hence this bell is called as "Naro-Shankar's

Ghanta" (bell)

5) Sita Gumpha (Sita cave) :- About 5o meter of north east of the Kalaram

temple to be believed to have sprung from the five big trees which gave its

area to Panchavati is the Sita Gumpha. It was in this cave that Lord Rama 68

used to hide Sita when he had to leave her and it was from hear that Sita

was abducted by Ravana in a disguised religious beggar.

6) Sundar Narayan Temple : This temple was built by Yashwant

Chandrachud in 1756. In the Shrine there are three black stone images of

Narayana, and Vrinda.

7) Kapaleshwar Temple - About 30 meters from Ramkund, this is the temple

of Shiva Kapaleshwar or the skull wearing Mahadeva. The only object of

worship is a Linga' which has no guardian bull (Nandi). This is the only

temple of Lord Shiva without bull in India. The inertia was built by Kolis in

1738 and the outer western part was built by Jagjivanrao Powar, a Maratha

officer in 1763.

8) Tapovan :- Is about 1.6 Km east of Panchvati Lord, Rama cleared this

place of the demons (Rakshasas) who were putting obstacles in the

performance of the Yogis by the Sages and seers. There is a fine temple of

Lakshamana built in 1817 by Virbai Mauhi. There is the influence of the

Godavari and the Kapila river and hence is known as 'Kapila Sagar Tirtha'.

There are also shrines of Gopal and Lakshmi Narayana.

9) Muktidham Temple : This temple is located near Nashik Road railway

station, about 6 Kms South west of Nashik city. This temple was built in

1971 by J. D. Bytco. The temple is pure white, the color of holpriose and

peace. This temple is made up of marble tiles. This temple has been

inscribed with 18 verses of the Bhagwad Gita on its walls. 69

10)Trimbakeshwar :- Is about 30 kins from Nashik, which is regarded as one

of the twelve '' in the country. "Kumbh Mela' is held at this

place after every twelve years.

Industrial importance of Nashik:

Nashik city already has gone ahead in industrialization. Nashik is being developed in industrialization as , Pune and . British government established India Security Press at Nashik Road in 1923. The Walchand group started first Rawalgaon sugar factory in Malegaon in 1933. Loom industry was started at Malegaon in 1935. The production of "Paithani" was started at Yeola in 1937.

Sinnar Industry: After seeing the good response of the people in industrialization MIDC decided to develop the industries in Malegaon near

Sinnar. The area of 7000 hectors was granted for it. The number of unemployees was increasing in Sinnar area due to no jobs except 'bidi' industry. Contemporary M.L.A. Shri. Surybhan Gadakh started various industries in 1982. The total 411 plots were distributed for it. Again 103 plots, including 74 for women were distributed in 1993. Mr. Surybhan Gadakh & Mr.

Tukaram Dighole worked hard for this industrial area. First of all Compllin

Grone started 'Liva Farma Industry' there and then Sarda Paper Mill, MDS

Switch Gears, VIP bags, Brook Brond, Wadilals, Jindal, Larsan & Tubro and many other projects developed here. Nowadays 15000 skilled and non-skilled workers are working here and export of 600 to 700 crores Rs. is gained every year. 70

Agricultural Industry in Nashik District: Nowadays agriculture in

Nashik district has been changed. It has become more commercial. The grapes of Nashik district are being sent to abroad. The farmers export it to various countries.

The rice of Igatpuri and Ghoti is very famous in the state. Grape, Onion,

Sugar cane and Nilgiri of Nashik is famous in the state and nation. Grape-Wine projects are developed in this district.

Wine Park : The progressive farmer of Pimpalgaon (B), Mr. Madhavrao More began the wine park at Vinchoor. Another wine project has been started in

Dahyane by P. Kalani group. There is a modern wine project Sula wine near

Gangapur Dam. Vishwas More's wine project, Ashok Gaikwad's N.D. wines,

Rajdhir wines of Deola are some famous project in Nashik District.

Sugar Industry : There are seven sugar factories in Nashik District. Niphad,

Kadwa, Vithewadi, Palase, Ravalgaon, These factories are producing sugar and allied products. Ranwad & Dabhadi (Girna) factories are ill factories. Due to the lack of sugar cane the sugar industry is marching towards decline.

Textile (Cloth) Industry of Malegaon : Hand looms have been there in

Malegaon since 1935. A mill and five units of ready made clothes are there in

this city. Malegaon is known as the Manchester of India in Industrialization.

The turnover of handloom is near about Rs. 3.5 crores everyday. There are

1,00,000 handlooms with 4,00,000. Out of the total workers 50,000 workers are

women and 30,000 are children. Nobody thinks about child labour. And

researcher thinks that poverty leads to labour in childhood. Figure 3.1: Map of Satpur Industrial Area 72

3.2 Location of Satpur Industrial Estate:

Being the centre of industrialization, Nashik has the natural gift of suitable atmosphere and ample water. The borders of Nashik district are touched to Dang of Gujrat state, Surat, Jalgaon, Dhule, Aurangabad, Nagar &

Thane. Nashik District is fulfilled with the water of Godavari, Darana, Kadwa,

Girana, Mosam, Damanganga & Vaitarana rivers. There are oil mills, rice mills

& saw mills in Nashik district. Different small and cottage industries were also developed in this district. These industries were mainly based on man power.

At the beginning of 20th century Late Mr. Waje began the 'Bidi' (A smoking stick which is made by Tendupatta and Tobacco) industry in the village Dubere. The great project of India Security Press was started by the central govt, in 1923. At the same time central railway began the workshops at

Manmad and lagatupuri. Walchand Group started the sugar factory at

Ravalgaon in 1933. The industrial progress of Nashik was brought into the focus when Hindustan Aeronautics Limited (H.A.L.) was established in Ozar in

1964.

Satpur industrial area is located 7 km away from Nashik to the west.

Establishment of Nashik Industrial Cooperative Estate (NICE) in 1962 is called as the revolution in industrial development of Nashik. The founders of the institute Late Babubhai Rathi, Late D.S. Potnis, Late Dadasaheb Andhrutkar worked hard for the industrial development. State government selected Satpur as the centre for Maharashtra Industrial Development Corporation (MIDC) in

1962. MIDC, Maharashtra State Electricity Board (MSEB), Maharashtra State 73

Finance Corporation (MSFC), Maharashtra Small Scale Industries

Development Corporation (MSSIDC) worked & helped in the sectors of land, lease, licence, loan and load. MSEB started National Thermal Power Station

(NTPS) at Eklahara near Nashik in 1965. To solve the problems of Big &

Small industries Nashik Industrial Manufacturers Association (NIMA) was established in 1972.

Nature has blessed good and healthy atmosphere to Nashik and hence

NICE tried to bring the different industries such as MICO, Taparia, Blow-Plast,

Mahindra, Crompton etc. in Nashik. NICE also tried for Electricity, water, roads, posts, Banks, Hospitals, Buildings, Shops etc. For the information of import and export policies the 'Information Technology Center' has been established. Now Nashik is not only religious city but it is also known as a well developed industrial centre.

Satpur is fully developed and it has become essential to find out other sectors for development. Hence MIDC developed Ambad in 1977. In this sector women are given special opportunities for industry. 'Software

Technology Park' is being established by MIDC in this sector.

The idea of MIDC was put forth to then contemporary minister Sheshrao

Wankhede by Babubhai Rathi, D.S. Ptonis, S.N. Anghrutkar, M.G. Shukla,

P.M. Waria and other friends who worked hard for that. They registered initially 100 members. They collected the basic share capital of Rs. 1,00,000/-

The state govt, also co-operated. MIDC of Nashik was registered on January

22, 1962. The contemporary collector Mr. Anil Kumar Muzumdar looked for 74 the proper place and he selected the land near the Mumbai-Agra highway.

Collector Anilkumar selected the land near Satpur. There was barren land of

700 acres. There was also the meadow for animals near about 900 acres. It was also adopted for MIDC. The first two big projects MICO and Taparia were started here in this zone. Then many other such as Crompton, Aristoplast, Blow

Plast, VIP, ABB, Carban Corporation industries were began in the area. Then many other big and small industries were started in Satpur and Ambad. The central govt, established software technology park in Ambad in 2002. I.T. Park is also developed here. MIDC of Nashik is facing the competition of globalization very successfully.

3.3 Geographical features of Nashik:

In the map of Maharashtra state, the Nashik district lies towards the north of the state. The Nashik District, lies between 19^35' and 20°52' north latitude and 73^16'and 73^56' east longitude covers an area of 15530 Sq. Km.

It is rhomboidal in shape with the longer diagonal of about 170Km from South­ west to North-east. The district ranks 3rd in terms of area in the state. Its neighbours to the north is Dang district of Gujrat State and Dhulia District in

Maharashtra state. To the south lies Ahamednagar district and to the west is

Thane district of Maharashtra and Balsad district of Gujrat state along with five

districts of Maharashtra state. Satpur is just 5 km away from Nashik.

Natural Divisions:

A district is divided according to the altitude of the land, it falls into three natural divisions: 75

(I) The high and hilly area to the West

(II) The table-land in the centre

(III) The low-lying plains to the East.

Talukas belonging to these divisions :-

The whole of Igatpuri, Peth, Trimbakeshwar and Surgana talukas and the western parts of Dindori, Nashik, Kalwan, Deola and Satana talukas come under the high and hilly area. The central table-land consists of the eastern parts of Dindori, Nashik, Kalwan and Satana Takukas and the whole of Sinner,

Nifad and Chandwad Talukas. The eastern part consists of Malegaon,

Nandgaon and Yeola Talukas.

Administrative Set-up :-

Initially Nashik district was in Bombay region but since Feb 1981

Nashik Revenue Division comprising of four districts viz Nashik, Dhule,

Jalgaon and Ahmednagar was established and Nashik is included in this new division for administrative purposes. The district is divided into three sub­ divisions covering 15 tahsils. The details are given in the Table 3.1. 76

Table No. 3.1 : Administrative sub-divisions of Nashik District.

Sr.No. Name of the Sub­ Name of Talukas division

1 Nashik 1) Nashik 2) Dindori 3) Igatpuri

4) Trimbakshwar 5) Kalwan 6)Peth 7) Surgana

2 Niphad 1) Niphad 2) Sinner 3) Chandwad 4) Yeola

-> j Malegaon 1) Malegaon 2) Nandgaon 3) Satana 4) Deola

Source : Collector office - Nashik

Figure 3.2: Map of Nashik District

••

MALEGAON

NANDGAON T NIPHAO YEOLA

m NASHIK J~\ /-^

?K3ATPURI -*,/

Source: Collector office, Nashik 77

3.3.1 Demographic features (Population) :

Demographic growth may basically influence on the growth and development of industries in two ways. First, gives equal per-capita incomes, it means an overall increase in national and international demand. Second, in the industrially advanced regions where high proportion the growth of population will lead to its further expansion.

According to the census 2001 the total population or Nashik district was

49,87,923. Their have been a net addition of 1996184 persons during 1991-

2001. The decadal growth rate of 29.52 percent is higher as compared to the state. During the decade 1981-1991 the growth rate of district was 28.70 percent. The high growth rate in the district may be partly attributed to the immigration of people for employment and other reasons within the district.

Malegaon tahsil experienced the highest population of 788961, while Peinth tahsil has shown the lowest population of 96755. The growth rate for each tahsil in the district for total rural and urban areas of the district are 20.29 and

47.51 percent respectively. During 1991-2001, Nashik Tahsil (Rural) has recorded a negative growth rate. It is noticed that Nashik is the most urbanized tahsil with 1317081 population, being urban Chandwad is the least urbanized with 205145 population in urban areas. Malegaon is highly urbanized tahsil

(788961) in the district. Table 3.2 : Tahsihvise population of Nashik District (2001)

Sr.no. Tahsil Total Persons Male Female

1 Nashik 1317081 705901 611180

2. Penth 96755 48568 48187

3. Dindori 264731 135670 129061

4. Surgana 45036 72943 72093

5. Kalwan 165437 83789 81648

6. Baglan 311148 159714 151434

7. Malegaon 788961 405416 383542

8. Chandwad 205145 105888 99257

9. Nandgaon 236359 122109 114250

10. Yeola 235379 121350 114029

11. Niphad 436330 226311 210019

12. Sinnar 291054 150774 140251

13 Igatpuri 228363 117065 111298

14 Trimbakshwar 69061 67099 136160

15 Deola 130013 67421 62592

TOTAL 4987923 2591980 2395943

Source : Nashik Dist. Collector Office Table 3.3 : Nashik District at a Glance

1 Population (2001 Census) Male 2591980 Female 2395943 Total 4987923 2 Literacy (2006-2007) Male 83.37 % Female 64.16% Total 74.15% 3 Industries A Small Scale, Medium Industrial units 7552 B Closed Units 2081 C Untraceable units 1312 D Employment generated through SSI 49,964 E Working Factories 4159 F Power looms 105000 G Employment generated through looms 420000 4 Sugar Factories Private 02 Co-operative 06 5 Spinning Mills Private 234 Co-operative 12 6 Electricity Villages Electrified (2007) 1852 7 Banking Network Commercial Bank Branches 39 Co-operative Bank Branches 16 Private Bank Branches 14 8 Transportation a Total Length of Roads (In Km) 13970 b Total Length of Railway Route (In Km) 287

Source : Compiled by author fromvariou s sources.

From the above data it is clear that the attraction of Nashik

Industrial centre steams from its locational and infrastructural advantage. 80

3.3.2 The climate of Nashik District:

The climate is an important factor which affects industrialisation directly. Climate plays a vital role in promotion of industries. The climate of the district is characterized by dryness except Monsoon. The climate varies considerably in different parts of the district. The summer months are hot and the Monsoons are wet. The winter months are cool. Nashik and Deolali are not very hot in summer whereas Igatpuri and Trimbakeshwar are actually cool.

During the same season Malegaon, Nandgaon and Satana are very hot.

The temperature may extremely lower at Nashik. Temperature begins to increase from Feb. May is the hottest month with daily maximum temperature at 40.6°C at Malegaon, 37.4°C at Nashik. The summer season is moderately hot and the temperature varies from 36UC to 43UC in the summer months. The winter is quite fair. The extremes of heat and cold are greater towards the eastern part.

The district receives adequate rainfall because of the influence of south west monsoon from June to October. The average annual rainfall in the district

is 1000mm. The rainfall received at is much heavier than in the rest of the district. The rainfall in this narrow strip increases from 2351.6mm at

Peint and the north to 3341.6mm at Igatpuri in the south. The rainfall decreases

from the west to the east, varies from 477.3mm at Satana and 753.1mm at

Dindori. July is the month with the highest rainfall. 81

3.3.3 Industrial Facilities:

Soil of the Nashik district is argillaceous in nature. This soil is very fertile for cereal and pulses. Lime rodules and Kenkar are found practically all over the district. The 'Trap Rock' is very useful for building purposes. Black soil is found mostly near beds of rivers such as the Girna and Mosam and

Godavari. This soil is more prolific soil than other soils. Height brown soil is found on hilly lands of the district.

Water and energy

Water is an essential infrastructure to the Industrial development. Water plays a very crucial role in the recreation and agricultural activities of people.

Therefore, water bodies constitute major resource potential for development of any region. Rivers, Lakes, Dams etc are the main resources for the industrial and agricultural activities.

River and Dams :

The whole drainage system of the Nashik district has been carried out by the Godavari and the Girna and their Tributories. The other important rivers are

the Mosam, Darna and Kadva. There are various water reservoirs in the

District. Table - shows the details of important dams in the district. These dams

help to irrigate fields, orchards, sugar cane plantation and industrial area.

The biggest river in Nashik district is the Godavari. The Gangapur Dam has been built on the source of this river. This dam is about 4000 meters long

and 44 meters high. Nashik (Satpur) MIDC area receive water from this dam. 82

Table 3.4 : Various Dams of Nashik District

Capacity Sr. Expenditure Location Height of the Name Year No. (Lakh) (Tehsil) (mtr) Dam (TMC) 1. Gangapar 1965 263.80 Nashik 36.57 159.84

2. Karanjvan 1974 1182.09 Eindori 39.30 175.56

3. Waghad 1980 1924.56 Eindori 46.92 76.44

4. Ozerkhed 1984 2602.40 Eindori 35.50 67.96

5. Palkhed 1976 3430.09 Eindori 19.55 23.03

6. Punegaon 1976 4772.73 E indori 25.14 20.39

7. Tisgaon 1998 2130.23 E indori 22.40 15.46

8. Chankapur 1918 328.91 Kalwan 39.01 79.79

9. Punand 2005 11561.92 Kalwan 34.40 39.75

10. Girna 1969 848.00 Nandgaon 54.60 524.00

11. Darna 1916 263.83 Igatpuri 28.04 202.44

12. Kadwa 2005 7606.56 Igatpuri 31.89 59.59

13 Kashyapi 2005 4933.33 Nashik 41.75 52.69

14 Aalandi 1985 2063.50 Eindori 29.28 29.53

15. Haranbari 1982 1848.13 E^aglan 34.02 34.77

16 Kelzar 1986 340.18 E^aglan 30.95 17.10

17 Nagya-Sakya 1994 2082.97 Nandgaon 23.09 15.62

18 Bhojapur 1973 165.72 Sinnar 29.65 13.73

Source: District Statistical Office Report, 2006-07.

The MIDC has set-up a separate water supply project, to deal with the major water requirements of Satpur industrial area. This project receives water from Gangapur Dam. 83

Energy (Power) :

All manufacturing industries depend on some source of power.

However, the role of power is locating factor. Adequate supply of power is essential pre-requisite for the development of industries. Electricity is the most versatile productive input in industry.

In Nashik district the thermal power station of MSEB was commissioned in 1970, at Eklahare. (5Kms away from Nashik-Road railway station) It produces about 17 million unit of power per day. It is a matter of satisfaction to note that all the villages in the district are electrified, i.e. 100% electrification.

Table 3.5: Consumption of Electricity in Nashik District (In '000' KWH)

Sr. Type of electricity use Electricity use and generation 1000 KWH No.

Thermal Hydro Total

1 Domestic — 133819 —

2 Commercial — 31130 --

3 Industrial — 522506 —

4 Public — 14038 —

5 Agriculture — 796106 —

6 other — 448610 ~

7 Total — 4542979 —

8 Total connections — 6.52 (lakh) ~

Source: District Statistical Office Report, 2006-07. 84

Transport and communication

Transport is the inevitable means of industrial development. The quality of transport network is the key factor which determines the accessibility of

industrial areas. Therefore, transport may be considered as a tool for

development of industries.

The mode of transport is divided into three categories viz. air transport, surface

transport, and water transport. The district does not have any navigable water

way facility. The air transport facilities are available at Nashik (Gandhinagar)

and Ozar (Mig) Aerodromes.

Nashik has not more than 4 hrs. journey by road and rail from Mumbai,

the largest port of the country for international trade. Road transport plays a

significant role for the balanced growth of regional economy. The road network

and the transport equipment are the two integral parts of the road transport

system. There are two national highways measuring a total length of 236kms

that passes through Nashik district Mumbai-Agra National Highway (NH-3)

and Nashik-Pune National Highway (NH-50) passes through the district. 85

Table 3.6: - Motor vehicles in Nashik District

Sr. No. Vehicle Diesel Petrol CNG/LPG Total

1 Busses 427 -- — 427

2 Motors and Station Wagons 47513 0 11346 58859

3 Jeep 24401 0 0 24401

4 Taxi 2771 1409 415 4595

Riksha- 3 Seater 2225 26199 581 29005 5 6 Seater 25 00 00 25

6 Two Wheelers 111 537669 0 537780

7 Ambulance 218 72 0 290

8 School Buses 236 0 0 236

X)tal Public Transport 77927 565349 12342 655618

Source : RTO office : Nashik.

Rail Transport:

Rail transport is faster and comfortable means of transport. Mumbai-

Delhi, Mumbai-Kolkatta, Manmad-Kanchiguda and -Daund Railway

routes pass through Nashik district. Mamnad is the biggest Railway Junction

(CR) in Maharashtra. The total length of railway route in the district is about

287 Kms.

Communication :

There is a close interlink between communication and transport. All

tangible communication have to be sent by transport. Only intangible

communication can be sent by wireless. Improvements in communication

facilities help to speed up communication. The most important means of 86 communications are the postal services, telephone & telex services and telegraphs, I-net facilites etc.

Table 3.7- Information of posts, Telegraphs & telephones.

Sr.no. Item Year(2007)

1 Post offices 688

2 Telegraph Offices 95

3 Telephones 201688

4 PCO 20516

5 Letter Boxes 2747

6 Postman 898

7 Post Offices with I. Net Facilities NA

Source : Telephone office, Nashik.

3.3.4 Infrastructural facilities in Satpur Industrial Area:

Since 1962, Nashik remained neglected as far as industrialisation was concerned. India Security Press (1924) and Hindustan Aeronautics Ltd. (HAL at Ozar 19 Kms away from Nashik) are the important industrial plants in the

Nashik District.

In 1962, Government of Maharashtra announced its Industrial Dispersal

Policy and Satpur, located at a distance of 5 Kms from Nashik City, was declared as an 'Industrial Area in 1963. Large number of Industries has started 87 functioning at Satpur during 1967. Nashik Industrial Co-operation Estate

(NICE) was established in 1962. MSEB's Thermal Power Station was established at Eklahare, lOKms away from Nashik in 1965. State Industrial and

Investment Corporation of Maharashtra (SICOM) declared Nashik (Satpur) as the first growth centre in 1967. Nashik Industries and Manufacturer

Association (NIMA) was established in 1971. MIDC declared additional

Industrial area at Ambad 5 Kms away from Satpur, in 1978. These were the real pioneering efforts of industrisation of Nashik.

The other attraction in the district is MIDC Industrial Area- Malegaon

(Sinnar). It is located 13 Kms away from Nashik Road. The total area under development is 632 hectare land.

MIDC-Industrial Area - Satpur

On August 1, 1960 the state Government had established the Board of

Industrial Development, a departmental authority to prepare a preliminary ground work for setting up of Industrial Corporation. Subsequently, on August

1, 1962 the Maharashtra Industrial Development Corporation known as

'MIDC was declared Satpur Industrial Area in December, 1963. MIDC's office was established at Satpur in 1967. This was in recognition of the significance of Nashik as a centre of Western region of Maharashtra State.

The main idea in establishing the MIDC was, 'to promote and assist in the rapid and orderly establishment, growth and development of Industries all over the state'. In order to achieve the said objective, MIDC provides a necessary infrastructure in such areas in the form of roads, street lights, water 88 supply, power and common facilities like Bank, Post office, Telephone, Telex,

Police Out post, Housing colony, Medical facilities, Educational, Parks, Hotels,

Hospital, Hotels and Restaurants etc.

In order to achieve the various objectives, MIDC is engaged in the following activities in Satpur Industrial Area.

(i) To provide developed plots with clear titles to entrepreneurs for setting up

of their industries in such plots and also to provide plots for industrial

housing and common facilities.

(ii)To provide facilities / amenities such as- built up accommodation for

Banks, Telephone / Telex exchange, Post office, Police Station, Fire

Station, ESIC Hospital etc.

(iii) To provide industrial housing by constructing residential buildings.

(iv) To establish major water supply schemes for helping industrial and urban

growth.

(v) To make special efforts for encouraging small scale entrepreneurs by

providing readymade sheds in Industrial Areas and helping them in setting

up their own industries. MIDC has undertaken a programme of developing

Industrial Areas. Initially, Government Lands and other lands are acquired

by Government under the Land Acquisition Act, 1894 or the MIDC Act,

1961 are entrusted to the MIDC for developing Industrial Areas. The

compensation for the land so acquired was also paid by the state

Government. The MIDC then prepares a broad layout of each area and

undertakes internal development in a phased manner. The development 89 work mainly includes developing water supply and water drainage. The plots in the industrial areas are allotted on premium lease basis. The usual period of lease is as 98 years. For holding the plot during the lease period the MIDC charges Rs. 1/- per plot per annum as a token lease rent.

However, for acquiring lease the MIDC charges premium at different rates i.e. developing developed parts. For fixing these rates MIDC has treated

Mumbai and Pune as developed areas and others developing Areas. For

instance, the premium rate is highest in developed areas.

An agreement of lease is executed and thereafter, the plot holder

has compiled with the terms and conditions of the agreement to lease. The

plot holder is permitted to Mortgage his interest in the plot for raising

finances from the authorized financing agencies.

In order to facilitate small scale units, readymade accommodation

is provided by MIDC in the form of work sheds and galas in Multi storied

buildings, facilities in the form or hire purchase schemes are extended by

MIDC as a further incentive. So that even after making payment of 20 to 30

percent of the total cost of the shed the small entrepreneur can take the

possession of the shed and for the payment of rest amount in installments.

The plot holder cannot transfer the plot without the permission of the

MIDC. 90

Physical progress and achievements of MIDC Satpur During 1963 to 2003

Table 3.8: Details of MIDC Area - Satpur

1 Total Land in possession 635.73

2 Total Plots 975

3 Plots Allotted 966

4 Rate of Land (Rs. Per sq. mts.) Industrial - 2000/-

Commercial-6000/-

Source (MIDC office, Nashik)

The data given in Table 3.8 itself shows that the MIDC has created considerable accommodation for industrialisation in Satpur Area. In our field information regarding to following points emphasized.

1) Nashik is an important Industrial city and headquarter of Nashik district and

also the focal point of the western region of Maharashtra. The Nashik city

draws considerable resources from their region for its own development and

in turn contributes to the development of the district.

2) The MIDC Area established at Satpur is a part and parcel of the integrated

process of Industrial development of the Nashik District.

3) The MIDC provided Link Roads, street lights, drainage system, industrial

forestry, hotel, financial institutions, post office, ESIC Hospital, Bus service

of MSTC and other facilities with the co-ordination of Government

departments. 91

4) MIDC played a vital role in creating an industrial climate and boosting the

establishment of diversified industries both small and large. They have

raised the tempo of industrial, activities at a full and better utilization or

local resources.

5) The MIDC area attracted well known large scale Industrial projects like

MICO, Mahindra & Mahindra, VIP Luggage Ltd. Crompton Greaves, ABB

Ltd, BCL Forging, Victor Gasket, Jyoti Structures, Tyres Taparia Tools etc.

6. But it is a matter of serious concern that sever stage of industrial sickness

creates many source economic implications.

7. MIDC has developed its own source of water. There is a separate water

supply project for supplying water to industries in the industrial area. For

power supply to industrial area MIDC is fully depending on MSEB and

maintains liaison with it for setting power lines and service stations.

8. The state Government has followed a very liberal policy in respect of

allotment of land for the purpose of setting up industries in MIDC areas.

Industrial Estate :

The industrial estate is an industrial area where factories, industrial water, electricity, transport and communication are appropriately arranged under directly or indirectly with government assistance.

The industrial estates have contributed very much towards the orderly development of small industries. Well-planned factory accommodation provided with facilities like water, electricity, transport and communication have attracted a large number of entrepreneurs to the small industry field. 92

The facility which an industrial estate affords to small scale unit is suitably planned factory accommodation in a healthy atmosphere required for industrial growth. Besides, common service facilities such as tool rooms, forging shops, foundries, electroplating units, heat treatment plants, Banks,

Post offices, Watch and ward, first aid etc are also provided to establishment.

The proximity to each other at the estate has also contributed to the strength of small units.

The state Government provides a number of facilities to the small entrepreneurs in the industrial establish viz. Subsidy on rent for factory accommodation, allotment or sheds on hire purchase basis as well as outright sales of sheds at reasonable charges. The industrial estate enables the entrepreneur to take advantage of the availability of services of each other, so as to make them complementary and interdependent through inter-firm co­ operation and inter linked development of industries.

Industrial estate creates a minimum quantum of social overhead capital without which directly productive activities can not take place. It is an experiment to induce private investment in small and medium sized industrial units.

Objectives of Nashik Industrial co-operative Estate (NICE)

The primary objective of NICE is to correct unbalanced regional industrial development. It is a co-operative effort to solve common problems of small industries, other objects such as under : i) To create the necessary climate and foster the activities for the development of small scale industries. 93 ii) To be the medium of industrial establishment for dispersing industries

towards under developed areas. hi) To encourage the growth of availlary units, arounding major industries in

the Satpur MIDC area. iv) To encourage small entrepreneurs by providing infrastructure at every stage

of establishment, operation and management. v) To create conductive and favorable industrial climate for rapid industrial

development.

Development of Infrastructure :

NICE was established on a co-operative basis. The entrepreneurs are the members of the co-operative society. The society takes the responsibility of providing all necessary infrastructure facilities. Even sheds are built-up by the society as per the type, design or the individual design. The work is carried out as per 20:20:60 pattern of assistance, where the entrepreneur has to bear only

20 percent of his share. State Government gives 20 percent as its matching share capital contribution, while 60 percent of the cost is raised by way of loan either from L.T.C. or MSFC of SICON or WMDC on the recommendation.

The amount is subsequently recovered in suitable installments. The establishment is directly controlled by the society and its working is governed by the bye-laws formulated by the co-operative department. The society can grant up to two plots per unit.

Under the co-operative establishment scheme the land acquired by

Government is given on long term lease basis i.e. lease period of 99 years, to 94 the industrial co-operative estate for the members unit. Registration or co­ operative industrial estate is done according to the rules of Maharashtra state co-operative societies Act, 1960. MIDC has been specially setup for establishing industrial establishment.

NICE was established on January 22, 1963, MIDC acquired 637 hectares of Land at Satpur out of which 101 Hectares were allotted to NICE.

The available infrastructure at that time was almost zero. NICE authorities had been very careful in providing all the five L's : Land, Loan, Load, License and

Lease to the entrepreneur. They also provided them with roads, water supply and other infrastructural needs so that the unit can stand on its own within a short time.

Industrial units that are setup at NICE are of different categories, engineering, food, auto parts, printing, paints, plastic, electrical, rubber etc.

NICE played a role of catalyst in the development of Satpur industrial area. The NICE is really 'NICE'. The NICE Takes care of a number of problems that can be real obstacles to an entrepreneur, such as obtaining well

located site providing needed utilities and constructing suitable premises for

industrial unit and small scale industries may find better chances of their

development through getting a favorable environment from the infancy stage to

the maturating at adult stage.

Flatted Industrial Co-operative Establishment of Satpur -

The Flatted or multistoried building is being used in congested industrial areas like Satpur, where land prices are high. A group of flatted factories was 95 being established under the auspices of a non-profit industrial organisation

(Small Scale Industries Employers Union SSIEU, Nashik) a construction programme was completed in 1984.

Salient features of the flatted estate are- i) The site of the establishment is in the middle of Satpur industrial belt. ii) Provision of power and water without delays was made. iii) Individual telephone connections were made available within time. Fax

facility was also provided according to the demand by entrepreneur. iv) Assistance for procuring finance from Banks and financial Institution.

v) Bank, Canteen, recreation centre, conference hall, First aid and required

facilities are provided in the flatted building.

vi) Active support of SSI Employers union for trouble free work environment.

vii) It enable the small entrepreneur to setup industrial unit with less

investments.

Evaluation :

The significant growth of industrial estate indicates that the Satpur

Industrial Area has covered more area in Satpur. As a result or discussion

with respondents during the survey, following measures are suggested for

further improvement and development of industrial estates in Satpur.

i) The units selected for the establishment in the estate should be based on the

availability of local raw material. 96 ii) Commercial establishments should be settled at nearby industrial

establishments where the product of industries could be sold to consumers

directly. iii) Large scale units can explore more responsibilities to buy their raw material

and components from the units based in industrial estates. iv) More attention should be paid by financial institutions to provide working

capital in time and in soft conditions. The procedure for sanctioning loans

and advance should be made simple. Financial institutions and Banks

should not wait for entrepreneurs but rather they should search and develop

entrepreneur ship. v) There is virtually no labour trouble in small units. vi) Majority of the entrepreneurs in the estate are from outside of the district.

The local entrepreneur must come forward to start their units in the estate. It

will be a good idea to mobilize the migue local raw materials and

techniques of the local areas in order to form a big growth centre. vii) The inducement of repair shops for indigenous industrial units is also

important, consideration should be given to establishing ancillary relations

between the small units within the estate and the big industrial units in the

area. ix) The volume of exports in small scale units are not so large. It is likely that

the small scale industry, having abundant domestic demand will strive for

catering for the domestic market for its products abroad. It is desirable, 97

therefore to improve the quality of export goods in the process of domestic

market cultivation. x) These co-operative establishments shall work primarily for the joint

activities such as common purchase of raw materials, common sale, storage,

transportation and quality test of finished products and training of engineers.

The NICE should open show rooms in big cities, near to the estate and also

participate in trade fairs more actively.

District Industries Centre (DIC)

The concept of DIC was evolved in 1978 on an all India basis to provide

assistance to entrepreneurs under one roof. As a focal point for promotion of

small, tiny, village and cottage industries mainly in rural areas and small towns,

DIC aims at providing all services and support to decentralized industries under

a single roof as far as practicable both at the pre-investment and post-

investment stages.

Government of Maharashtra established Nashik DIC on 15th March, 1979. The

main functions of DIC are as follows :- i) To provide guidance and assistance to entrepreneurs to crystallize their

ideas into an industrial project. ii) To provide a model project profile to an industry. iii) To provide guidance and assistance for obtaining infrastructural facilities

like land, shed, power, licenses etc. iv) To help in registration of SSI unit with National Small Industries Co­

operation Promotion Councils and Central Stores Purchase Organisation. 98 v) To help in obtaining machinery on hire purchase basis. vii)To process and sponsor applications for obtaining scarce indigenous raw

materials, import of raw materials, spares and machinery. viii)To recommend cases to concerned authorities for various concessions /

facilities like telephone, octroi exemption etc. ix) To process and recommend applications for seed money and other financial

assistance to concerned institutions. x) To provide market assistance through MSS IDC. xi) To assist artisans and artisan units. xii)To arrange for training facilities to rural youth under TRYSEM.

The progress made by DIC, Nashik in establishment of artisan and small

scale units can be seen from statistics. 99

3.3.5 Growth of SSI in Satpur Industrial Area:

TABLE 3.9 : Growth of SSI Temporary and Permanent End of the year 31-03-2005)

Serial No. Year Temporary Permanent Total

1 1994-95 1433 543 1976

2 1995-96 1553 698 2251

3 1996-97 1237 1178 2415

4 1997-98 1421 964 2385

5 1998-99 1579 842 2421

6 1999-2000 1857 462 2319

7 2000-01 1509 426 1935

8 2001-02 1135 114 1249

9 2002-03 1162 333 1495

10 2003-04 1369 371 1740

11 2004-05 1572 530 2102

Source: office of Assistant Director (Industries), Nashik Region, Satpur, Nashik. 100

GRAPH-3.3 : Growth of SSI (Temporary and Permanent) - End of the year 31-03-

2005

Growth of SSI

2000

1800

1600

1400

1200

1000

800

600

400 200 UlillliiLi 1994-95 1995-96 1996-97 1997-98 1998-9I Temporary9 1999-200B Permanen0 2000-01t 2001-02 2002-03 2003-04 2004-05

Throughout the world, industrialisation, indeed, has become the magic word of the twenty first century. The view for industrial section has caught wide attention of the developed countries. Since the end of Second World War,

industrial development of the under developed countries has become one of the great world crusades.

No nation in the modern times has grown rich through agriculture alone, written of the growth of civilization and the multiplication of human wants, the occupations associated with industries and manufactures have increased in importance and found to be more remunerative than agriculture and

industrialisation has come to be regarded as a necessary. 101

Rapid industrialisation has become the most pressing need of many developing countries of the world to achieve the fundamental objectives of their economy and social progress. It is, thus, clear that industrialisation should be regarded as a vital part of the wider process of economic development.

The pattern of 'growth through trade' in primary commodities was, however, realized in the nineteenth century with industrialisation trade took place. This traditional pattern of growth through trade is out of place now. As rising levels of per capita consumption have gradually transformed the composition of demand for goods and services and as technological changes have resulted in the more economic use of new materials, the growth of import demand of the advanced countries for most primary products has lost the momentum or the earlier period, currently it lags behind the growth in their domestic incomes and output. In general the net value of output per person is higher in industry than in agriculture. In industry, the scope for internal as well as external economies is greater than in other sectors and certainly greater than

in agriculture.

The process of industrialisation is associated with the development of mechanical knowledge, attitudes and skills of industrial work, which in turn,

are beneficial to the growth of productivity in agriculture, trade, distribution

and other related sectors of the economy. As a consequence of rise in incomes of labors tend to spend more on manufactured goods than on food.

Industrialisation acts as an instrument of creating capacity to absorb excess labour power and or catering for the diversification of the market required at 102 higher stages of economic development. The diversion of under employed rural labour in non agricultural occupations is an urgent requirement for development. But it does not mean that industrial development can be dissociated from progress in the agricultural sector.

X