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275 CHAPTER VIII SUMMARY AND CONCLUSIONS The present study has provided a comprehensive geographical analysis of industrial development in Thane district. The study has also aimed at analyzing the role of MIDC in the industrial development of the district. Industrial Policies are directed to exploit idle resources for productive purposes and contribute to the national income. The industrial policies affect industrial development in specified direction. Availability of infrastructure is also influencing factor of industrial development. M.I.D.C has a substantial share in the industrial development of Thane district. It accounts for nearly 50% of the total industrial units in Thane district. Working population engaged in M.LD.C. is more than 60% of the total factory employment in Thane district. It indicates the significant growth in number of industrial units and employment in Thane district due to the establishment of M.I.D.C. Most of the industrial units and employment are concentrated in Thane taluka but the important change is that, industries are established in all the talukas of Thane district. Industries are also coming up in rural as well as tribal areas. Growth centers are developed in Murbad, Talasari, Dahanu, lawhar and Wada talukas, which are less developed regions of Thane district. All the observations and findings drawn from the study are summarized here. Certain suggestions helpful to the industrial units are also made. The present study hypothesizes that (I) Industrial development in Thane district 1S the result of availability of infrastructural facilities, industrial policies and (II) MIDC has played an important role in the industrial development of Thane district. The analyses and interpretations based on different types of data collected validate the hypotheses. 8.1 Findings Following are the important findings and conclusions of the study. 1) Location of Thane district and its proximity to Mumbai is an important factor in the establishment of industries. Suburban local trains and highways connect Dahanu, Palghar, Vasai, Thane, Kalyan, Shahapur talukas of the district to Mumbai, which is the commercial capital of India. It may be stated that motor 276 able roads are available even in the most backward areas like Mokhada. There are more than 75-degree colleges of Arts, Science and Commerce, Engineering, Physical Education Training and Management in the district. Number of primary and secondary schools are providing educational facilities to deserving students. Commercially important cities like Thane. Kalyan, Ulhasnagar and Bhiwandi are well served by many branches of different banks, financial institutes etc. Communication facilities are well developed. The Government has provided more than six lakh telephone connections to consumers in the district. Most of the villages in the district are electrified. 2) The industrial location policy (ILP) has helped in the industrial growth of the district. Due to the shifting of industriC!s from Mumbai to Thane, manufacturing intensity of Thane taluka is the highest in the entire district. Thane today is the largest centre of industrial employment. The factories have taken the advantage of the proximity to Greater Mumbai, where there have been restrictions on the establishment of new factories since 1962. The industrial policy resolution adapted by Government of India in 1956 was the first comprehensive industrial policy that defined the Government's basic approach towards the country's , . industrial development. Maharashtra has been the first state to adopt complementary policies for promoting rapid industrialization and encouraging development of backward areas. A study ofIndustrial Location Policy indicates that all round efforts by the state for the industrial dispersal have succeeded in directing flow of investment to growth centers. Another study by Bombay Chamber of Commerce and Industry also notes that the industrial base generates adequate employment in the growth center. The recommendations of the Regional Plan for BMR were sanctioned in 1973. Decentralization of industries from Mumbai, the major policy objective that was implemented, dispersed the industries from Mumbai Metropolitan region. 3) The distribution of industries is uneven in the study area. There is a distinct regional imbalance in industrial development. Industrial areas of Thane in -MMR are well developed but tribal talukas are developing slowly. The concentration of secondary activity - manufacturing is studied by calculating manufacturing intensity in all the talukas of Thane district and it is highest in Thane taluka followed by Palghar, Kalyan and Ulhasnagar talukas which are part ofMMR. Manufacturing Intensity is less in tribal talukas. 277 4) Industrialization and urbanization are going hand in hand. Hence, as number of industries is increasing urbanization is increasing in all the talukas of Thane district. Because of this, infrastructural facilities are developing and there is change in land use pattern and conversion of agricultural land to non agricultural uses. Proportion of conversion of agricultural land to non agricultural land highly correlates with index of urbanization. Coefficient of correlation is 0.6, which indicates that change in land use and urban growth are closely related with each other. Industrial growth in Thane district was remarkable from 1961 to 1991 but from 1996 industrial growth has slowed down as indicated by number of industrial units and employment. 5) After the establishment of MJDC, industrial growth in the district has accelerated. Units in MJDC area account for 50 per cent of the total industries and 60 per cent of the factory employment. MIDC was established in 1962. Number of industrial units in Thane district was 227 in 1962 but in 1971 the number reached up to 7339. The industrial growth in Wagle, TTC, Dombivli, Arnbernath and 8{ldalapur MIDC region was very fast as indicated by the growth in industrial units, employment, capital investment and possession of land. Wagle Estate in Thane was established in 1962 while other areas of MIDC were established in 1964. For comparison of all the MIDC areas in Thane district period from 1967 onwards was chosen. MIDC industrial areas were established in different talukas and growth centers were developed. The establishment of MIDC areas and industrial growth are influenced by transport, communication systems, educational facilities and accessibility to international trade centre- Mumbai. 6) Number of post offices, telephone exchanges and telephone connections has increased. Branches of Nationalized and Scheduled banks have increased. Development of electronic facilities helped faster communication. Sophistication in trade and commerce is indicated by e-commerce, e-marketing etc. 7) Occupational structure has changed due to industrial and urban development in Thane district. In rural areas workers are mainly engaged in primary activities but they are also engaged in tertiary activities or in service activities. Initially four per cent workers were engaged in service sector but now the proportion has increased up to eight per cent. Along the National and State highways, small 278 workshops, repairing units, tea stalls have been established. In this way service sector is increasing in rural areas of the district. The proportion of construction workers is also increasing due to ongoing construction activities in urban areas. With the industrial development environmental pollution increases, this is responsible for decline in fishing and horticultural activities. Some workers involved in these activities are compelled to change their occupation. This is observed at the border of Palghar and Dahanu talukas where large industrial zone of MIDC is established. Hundreds of fishermen have changed . he occupation because of water pollution and low catch of fish. Due to soil pollution fruit gardening is done away from industrial areas. _ -~ _ - -' ~~ 8) Urban popuJation in Thane district has increased. It is 14.3 % ofMaharashtra' ~ urban population, which is second in the state. Urban popula!!9n--in tribal '- ~ , - - . -.. - talukas is increasing hence Urbanization Index is also increasing. Urbanization Index of Thane district was 30.21 % in 1961 but in 2001 it is 64.64 %. Literacy rate in the district was 69.54 % in 1991 while in 2001 it was 81 %. The study I emphasizes the need to improve the literacy and industrial growth in Mokhada ' taluka to accelerate the economic growth. 9) The study indicates that large-scale employment is generated because of establishment of SSI. More than ] 1,000 permanent SSI units are ~stab1ished which generated 1.1 lakh jobs. Nearly 450 LSI units are engaging more than 78,000 workers. MIDC established appro x 50 % of industrial units, which have generated 60 % of total employment. 10) Agricultural land is converted into non-agricultural land mainly for industrial, commercial and residential use. Land values are increasing. Land values are high in Wagle MIDC area. All the infrastructural facilities are available in this area and it is nearer to Mumbai Metropolitan City. Higher land value (Rs .7000/ sq m) discourages entrepreneurs from purchasing a plot there. 11) Environmental pollution is the main problem in TIC, Tarapur, Dombivli, and Ambernath as these MIDC areas are identified as chemical zones. However, many units are trying to control the pollution by adopting different measures suggested by MPCB. The Government closed some of the highly polluting units down e.g. Sharda chemical