PART I

CHAPTER I

INTRODUCTION I . statement of Problem

Many industrially developed and developing countries have faced and have been facing, in their economic develop­ ment, the problem of regional imbalance. To-day, India is also facing the same problem. Apart from being indus­

trially an under-developed country, India exhibits all the evils of mal-distribution and acute concentration of industrial activity since long. In the year 19U3» about

2/5th of the industrial activity of the country was con­ centrated in only two centres - Greater Bombay and Greater

Calcutta. ^

Regional imbalanceis caused by a number of factors, both natural and historical. Some areas are naturally richer and advantageous than others because of the availability of natural resources and infra-structure facilities.

Naturally those areas attract concentration of industries.

In a country like India, all these factors vary from area

to area and ultimately cause the imbalance in economic and

industrial development of the country.

It is also possible to explain this element of re­ gional imbalance with reference to the historical back­ ground. Under the British rule, the managing agents pioneered and developed certain industries in our country.

But being foreigners they were not really interested in

1 Census of Manufacturing Industries in India, 1952 the many sided development of this country. Vhat was uppermost in their mind was the interest of their own country. They treated India more as a colony supplying the necessary raw materials to the Industries in Great

Britain. As a rssult of this, they failed to develop in­ dustries in different parts of the couotry. Instead they concentrated and developed industries at a few places con­ venient to them such as the ports and leading cities in

India. That is to say> the developmei^t of industries took place at such places having the basic facilities such as power, transport, raw materials, skilled labour and other amenities like housing etc. The major cities being such places, all the industries were concentrated there and this led to regional imbalances, which resulted in

(i) creation of economic inequalities and uneven

distribution of national dividend among dif­

ferent regions of the country,

(ii) under-utilisation of the resources of the

industrially backward regions as these remained

untapped,

(iii) lack of uniformity in social progress among

different regions,

(i v ) large-scale migration of people from backward

areas to the industrially advanced regions,and

(v) overcrowding, heavy traffic, inadequacy of

essential services and facilities, etc. etc. Apart from Bombay, W«st Bengal, Bihar, Uttar Pradeah, very few of the other States were Industrially developed upto 1950. According to the Census of Manufacturing

Industries (I9 5 2 ), the States of Bombay, West Bengal, Bihar,

Madras and Uttar Pradesh accounted for 70^ of the total number of factories, 80^ of the total capital employed and

80^ of the total persons employed In factories In 1931•

This means that many of the States were more or less totally neglected and thus were denied of the economic and Industrial development. The aspect of regional balanced development under conditions of overall economic growth has been recently accepted as the basic criteria for assess­ ing the rate of development. After Independence, and particularly after the launching of Five Year Plans In our country, the developmental efforts have been Intensi­ fied and the Planning Commission, set up in 1950> accepted the principle of prepfirlng national as well as State Plans.

The object behind this Is to understand the needs of the different areas and to redress the regional Imbalances

In the economy. The steps thus taken can be said to have produced on the whole favrourable results. The first fifteen years or so of our planned efforts reveal that the indus­ trial activities have to be accelerated If we want to achieve the objective of regional balanced development In the near future.

There Is no doubt that Maharashtra is one of the most Industrially developed States in the country. It ranks

third in the list of developed States. Maharashtra alone

accounts for nearly one-fourth of the total industrial

output in the country. In 1966-6 7> the State shared about

17 per cent of productive capital, 2h per cent of gross value of output and 26 per cent of the value added by 2 manufacture in the factory sector in the country. Again> according to the revised series of State Income, the

State Income of Maharashtra is estimated at R s . 3053 crores during 1967-68 as against the National Income estimated at Rs. 27922 crores. The per capita State Income of Maha­ rashtra during that year estimated at Rs. 6^k is higher by 20 per cent than the per capita National Income of 3 R s . •5U3. However, this flattering picture of the State

is rather deceptive because the economic development is not uniform and balanced. In the State there are pockets of highly developed and industrialised centres such as

Bombay-Thana Area and Poona-Pimpri-Chinchwad complex on

the one hand and vast areas of agricultural and industrial backwardness on the other. Existence of all the basic facilities in adequate measure is the important cause

for the development of this Bombay-Poona complex. Greater

Bombay alone plays an important part in brightening the position of Maharashtra as an industrially developed State

in the country. This can be seen from Table 1.

2 Maharashtra - An Bconoicic Review, 1968-69, p. I5 . 3 Ibid., p. U • 5

Table 1. Distribution of Working Fact ories According to Working Strength (I965-66 )

District Divis ion No. of No. of factories workers

1. Greater Bombay Bombay *♦635 5,72,kk7 2. Thana Bombay 67U 62,030 3 . Kolaba Bombay 81 k,6j2 k • Ratnaglri Bombay k3 2,152 5 . Nasik Bombay 301 21,075 6 . Dhulla Bombay 208 8,l»l»9 7 . Jalgaon Bombay 13,109 8 . Ahraednagar poona 260 21,262 9, Poona Poona 895 55,876 lO.Satara poona 95 7,671 ll.Sangll Poona 97 7,kkS 12 .Sholapur Poona 335 29,573 13 .Kolhapur Poona 358 13,057 Ilf .Aurangabad Aurangabad 122 5,910 1 5 .Parbhanl Aurangabad 5k 2,732 l6 .Bhlr Aurangabad 35 786 17 .N anded Aurangabad k2 5,7ti7 18 .Osmanabad Aurangabad 27 1,099 19 .Buldhana Nagpur 67 k,529 2 0 .Akola N acpur 79 6,232 2 1 .Amravati N agpur 89 8 ,2l»«t 22 .Yeotmal Nagpur 71 5,593 2 3 .Wardha Nagpur 39 5,832 2k .Nagpur Nagpur 39k 29,285 2 5 .Bhandara Nagpur 166 If, 525 26 .Chanda Nagpur 50 3,957

9,kl2 9 ,03,293

Source 1 Statistical Abstracts of Maharashtra, 1966-6 7 iP•191• From the above table It seems that Greater Bombay alone accounted for UU per cent of the total number of factories and 63 p*r cent of the persons employed in factories in the State. This shovs the unevenness in the economic and industrial development of different districts and regions in the State. The Bombay division had 6197 factories, whereas Aurangabad Division had only 280 factories in 1966, meaning the whole division being Industrially back­ ward. This has caused the lop-sided development in the

State. Only three districts, viz. Greater Bombay, Thana and Poona, have been Industrially developed, although some factors of location are favourable to other districts.

But due to lack of other infra-structure facilities and amenities, most of the districts have been neglected.

Now in future the allocation of developmental expendi­ ture between the various regions of the State should be based on the principle of redressing the existing Imbalance and qiilckening the pace of development in the underdeveloped regions of the State. In this context, it is essential to understand the present state of imbalance and also the possibility of quickening the speed of growth. It becomes therefore, necessaxy to undertake district-wise surveys not only of the existing industries but also of the exist­ ing resources and of future potentialities. Such district surveys would go a long way in assessing the perspective planning in each region of the State. That is why It is regarded as a fit subject to

study the position of existing industries in Nasik district,

their p^blems and possibilities of further development.

Upto 1962 the district was an industrially backward dis­

trict in the State. But since I962 , rapid and diversified

development is taking place with the active assistance

from the State Government. Effort has been made to study

all these aspects of industrial development in the district

and to suggest necessary improvements to that effect.

I I . Objects

Though we have accepted the principle of 'State Plan',

it would be much better to focus our attention on areas

defining them in terms of 'District' rather than on State

for the purpose of economic and industrial development.

It is a vital aspect of the economics of growth to find out

a method and strategy of regional planning that would not

only result in a higher rate of development in the State,

but also in a wider spread which is most essential to fulfil

the twin objectives of providing more and more employment

opportunities and improving the general standard of living

of the people in the region. As such 'regional planning

for balanced growth* can be described as the first step

in the direction of rapid economic and industrial develop­

ment. In the case of industrial development, the State

should try to ensure that the benefits of industrialisation

are equitably shared by different parts of its territory 8 and with this object In view, to check the evils of exces­ sive industrial concentration in certain localities.

In this respect, the State Government deserves all praise as they have, very recently, decided to formulate

'District Plans* to have proper and all-sided development of all the districts in the state. The Nasik district, as a region under study, has all the characteristics of a developing region in the State. Since 1962, the State

Government have provided proper attention for the develop- in ment of this district, as it is,the neighbourhood of

Bombay.

The objects of this study are manifold. Firstly, it aims at making an appraisal of the present position of different industries - small, medium and large-scale - in the district. Secondly, it aims at having a quantitative assessment of a number of problems encountered by each of these industries in their day-to-day functioning. Thirdly, it aims at studying the resources position and the indus­ trial potential of the district which would help the State

Government and the industrialists to undertake rapid industrial development. Lastly, to make an objective analysis of the factors whose absence is found to have adverse effects on the competitive efficiency, productive capacity and the growth of different industries in the district and in suggesting a few schemes for industries and for the development of economic and social overheads in the district. In brief) what is important is, to be aware of the potentialities of the district and what could be done in short as well as in the long run, through this type of study. It nay, however, be noted that the above is a broad set of objectives which is to be achieved through the present study to the extent possible with certain limitations in view of individual capacity, cost and time.

III. Scope

For the purpose of this rese^ch work, the area selected comprises of thirteen talukas covering 6013 sq. miles or 15,*(72^ sq.kms. to denote the region of Nasik district.

This study is Intended to trace the historical development, to understand the present position of the small, medium and large-scale Industries in the district, to analyse the problems faced by these industries and to suggest a few general as well as particular schemes for the proper and smooth Industrial development in future.

The period covered by this work is upto March 1971*

The findings of this study would bring forth the ex­ tent of development taken place in the district. It would also point out the aspects where more Improvement is possible and the steps necessary to effect such improve­ ment .

I V . physical Features, etc.

The topography and physical characteristics are the 10 base for designing pattexns of development suited to the structural and resources format of the region.

From the period of antiquity Naslk, a district place,

Is well-known In India. According to the Indian mythology,

Prabhu Ramchandra Is said to have stayed here for a long time In Tapovan which is on the eastern side of this famous city. Therefore, a large number of people visit this sacred place every year. It Is, thus, very clear that the Industry is not the cause of its Importance and growth.

The Nasik district is also famous for Trimbakeshwar, one of the places of Jyotirllngas in India and the birth place of the river Godavari, which is on the western side of the district, and 18 miles away from Nasik city. Thus, Nasik and Trimbakeshwar are the two important places of pil­ grimage for Hindus, who visit these places once in twelve years at the time of Kumbha Mela.

Nasik district is situated partly in the Tapi basin and partly in the Godavari basin. Kalwan, Baglan, Malegaon and Nandgaon talukas in the north and north-east are drained by the river Girna and its tributaries. These talukas are situated in the Tapi basin, while all the re­ maining talukas in the district are situated in the Godavari basin, and drained by Godavari and its tributaries.

The district lies between 19°33^ and 20°53^ north latitudes and 73**l6*^ and 75^6' east latitudes. It is surrounded by Dangs and Surat districts of Gujarat State 11 on the north-west, Dhulla district on the North, Jalgaon district on the north-east and east, Aurangabad district on the south-east, Ahmednagar district on the south and

Thana district on south-east and west.

Area and Population

The area of the district is 15,*>7U sq.km. and its

total population, as per I96I census, was 18,55,2^6.

Reviewing accoirdlng to area, Naslk district ranks first in the Bombay Division and fifth in ^}aharasht^a State

According to population, it ranks the first in Bombay divi­ sion, excluding Greater Bombay, and the third in the State.

In terms of area and population the district makes 5 .08 per cent and .7 per cent of the State respectively.

The population of the State has Increased very rapidly during the last fifty years since I9II) which can be seen

from Table 2.

Table 2 . Growth of Population in the District

Year Population (in lakhs)

1911 8.97

1921 8,k3

1931 10.10

19** 1 11.28

1951 Ik.30

1961 18.55

Sources District Census Handbook, I96I. 12

The population of the district has Increased by

2 9 .71^ In the course of the decade ending 196I as against the corresponding Increase of 2 3 .60^ In the State and

2 1 .51?^ In the country.

According to the I96I census, the total population of the district is 18.55 lakhs, which is 1^.7 per cent of the population of the State. The average density of population is 119 persons per sq.km. as compared to 129 in the State.

‘kiL of the people in the district live in rural areas and 25.691 in the urban area. There are only I 5 towns in thirteen talukas of the district as per 196I census and

1652 villages.

Occupational Distribution

The occupational distribution of population in any country or region is considered as one of the important

Indicators of its economic development.

The occupational distribution of population in the district can be seen from Table 3*

The livelihood pattern of the population shows that the primary sector (i.e. agriculture, mining, livestock, forestry etc.) accounts for 75 per cent and the secondary sector (i.e. manufacturing and constiructlon) accounts for only 12 per cent. The household Industry alone accounts for 3h per cent of employment in the secondary sector.

This shows an agricultural nature of the district.

This analysis of occupational distribution also indicates 13

o o

0 ■p 00 N m 00 r-l O H n o\ Ov H in a ti H O H o \ ■M NO H W H VO J f in ba o 0\ oo 0 \ o\ 00 a O Jt H •H +» H ■d (d k H 0 9 u d u o (d 0< 00 ^ n 0\ 0\ H VO 0 \ n »n ITi H VO 00 Jt r» N O •p (d CM J- n 00 u 00 H N r - VO r \ •rlu H ■p « •H Q • o W £ § IT. J t H o \ r \ Jt w w P H »n W o H VO VO 0 \ m 00 in cv H VO o r ' •s H B ;=> j t •H n 9 (4 bo 0) T3 1 H TJ c 9 0 u 2 Ci 0 9 (d •p « i fi Q •0 « 3 o « c © o ► I] •H cd •H +> d) ■p (d >1 § o V i (0 •H H d H e •P m (d • H •H o o 0 U 'fi •p « <4 U 3 0 •P ■0 u U o U o o r +» T3 3 t •H ■p U h o « •M -p 9 H w s u 3 § o ,0 H (0 H 0 o c •p U) •% jC (d C Qi VO ► 9 « m u o 3 0\ « u c « ■p •H « 3 k « ■p_ C « X % n a k (d Id XI (d U c +» 3 C +* c • H •H • 0 (d « 0 u u ■p 9 o o O M B 0 s £ 3 H H • h ■0 u c « C 0 c C a c CSC o O H *H H H H H H u H < H >H H 3 A • • • • o ct n cn H n JJ- m VO r~ 00 O I k the gravity of the problem of unemployment in the district.

Literacy The percentage of literacy in the district, according l± to 1961 census) was 26.9 ®^s against 21*k in 1951* This percentage varied very widely from taluka to taluka in the district. In Surgana taluka it was 8^, in Peint taluka

8 .9^ and kl-9i> in Nasik taluka. The literacy amongst the urban population was 2186U6 in I961 and 280260 amongst the rural population. In fact, 39 of the male population was literate but due to the lower percentage of literacy amongst female population (i.e. 1 3 brought down the general average to 26.9*

This average is expected to rise by about 10% by the end of 1971 with rapid expansion in educational facilities.

Scheduled Castes and Tribes

In the district, 5,21,552 of the population consist of scheduled tribes and scheduled castes, U53707 and 678*^5 respectively. Baglan, Surgana, Kalw^n, peint, Dindori,

Igatpuri talukas and the western part of Naeik taluka are known as * Adivasi * talukas in the district as 85^ of this population resides in these talukas. This has, no doubt, reduced the revenue of the local body, but, in addition, has added in the s) cial and welfare expenditure for their uplift - both social and economic.

Statistical Abstracts of Maharashtra State, I967-68, p. UU. 15

Hill Rang»« The main system of hills Is the Sahyadrl and Its off-shoots. The main Sahyadrlan range runs from north to south on the western portion of the district. From the main Sahyadrlan range, three prominent spurs stretch out to the east. In the extreme north, the Salbarl range forms the boundary between Naslk and Ohulla districts. The Satmala range runs right across the district. It acts as a water­ shed between G l m a and its tributaries draining towards the Tapi on the one hand and the Godavari and Its tribu­ taries on the other. The range that stretches eastwards from the Sahyadrls, south of Igatpurl, Is on the whole the most rocky and precipitous in the district. It contains the highest summits, one of which, the Kalsubal, reaches an elevation of about 51*00 feet.

River System

Godavari and G l m a are the two main rivers of the district. The other Important rivers are Dama, Vaitarna,

Mosam and Kadva.

The river Godavari rises from Brahmaglrl with Trimbak hills in the Sahyadri ranges near Trlmbakeshwar and drains

Naslk and Nlphad talukas for about ill kms. Godavari is the largest of the rivers rising in the Trimbak hills. At a distance of about 18 ms. from its source, a huge earthen dam has been built at Gangapur for storage and irrigation. The dam is popularly known as ‘uangapur Dam*. 16

The Godavari canals supply adequate water for the cultivation of sugarcane during the dry season.

During Its course many small streams meet the Goda­ vari, the important among them are the Kadva, Darna and

Nasardi. Many small and big dams have been built on these tributaries for storage and diversion canals for

Irrigation.

The river Girna rises in the Satmala ranges near

Hatgad village in Surgana taluka and flows through Kalwan and Malegaon talukas. The course of the Girna within the district is about kms. A big dam has been built on

G i m a near Nandgaon, but its irrigatlonal benefits are available to the adjoining Jalgaon district. The dam is known as 'Girna dam' . Mainy small streams rising in Kalwan,

Baglan and Dindori talukas feed the Girna Dam. The promi­ nent among them are Aram, Mosam, panJan and Manlad.

Rainfall

Rainfall la not uniform in all parts of the district.

It is more than 1905 mm. (7 5 inches) In the western part comprising Surgana, peint and Igatpuri talukas. Further east it drops down very rapidly to 889 mm. (35 inches) in the west of Nasik city, to 762 mm. (30 inches) a few miles to its east and to 635 mm. (25 inches) on the north-south line approximately by passing centrally through the district. The portion of the district lying to the east of this central line gets less than 635 torn. (25 Inches) 17 rainfall. In Baglan taluka It Is the lowest in the dls> trlct, averaging only to 350 to kOO nnn. ( 13 to 18 inches) annually.

The rains start at about the middle of June and last till the end of September. The intensity of rainfall is usually greater in July and August.

Table U . Rainfall in the district during 1968 and 1969

Name of Taluka Normal In 1968 In 1969 rainfall (mm. ) ( mm . ) ( mm. )

1. Baglan 500 522 817

2. Chandor 650 530 992

3 . Dindorl 780 877 1067

U . Igatpuri 3500 3h31 3*^63

5. K alwan 7t*0 699 9U8

6. Malegaon 5U0 501 57 5

7 • Nandgaon 570 3U2 723

8. Naslk •500 769 1170

9. Niphad 570 501 758

10. Pelnt 2k 50 2685

11. Sinnar 570 718 965

12 . Surgana 2050 1650 2521

1 3 . Yeola 550 6U8 729

Source: District Statistical Abstract, 1968-69 and ! p . 1.

Thus the distribution of rainfall is quite uneven. 18

Soil*

There are four types of soils found In the district, namely, (1) Black (Kali), (11) Red ( L ^ or Mai), (111)

Red and Black (Koral) and (Iv) Light Brown(Barad).

Black soil Is found mostly In the plain country near the beds of G l m a and Mosam rivers . The Godavari and

Kadva river valleys have also deep black soil. it yields excellent 'Habl* crops of wheat and gram. It Is moat mature and fertile. Red soli which Is stlffer and shallower,

Is found chiefly on hill slopes and yields good rainy season crops. Red and black soil Is found occasionally

In hilly tracks and yields gram, lentils and other cold weather crops. Light brown soil is the lightest of the soils and is found on hilly area. It is essentially an

Immature soil and covers the eastern slope of the Sahyadris.

It is the typical soil for Kharlfcrops like pulses.

Climate

The climate of the district can broadly be classified according to distinct seasons:

(i) 'Monsoon* from the middle of June to the end

of September,

(11) ‘Winter' from October to the middle of March, and

(ill) 'Sunnier' from the middle of March to the middle

of June.

Except for the western slopes of Sahyadris, the dis­

tinct generally experiences salubrious climate. The suBuner 19 months are moderat®ly hot and the temperature varies from

36**C to k3°C. The rainy season is comparatively cooler with sporadic rainfall distributed over four months.

During winter which is severe in December and January, the o o temperature stays between 29 C and 10 C.

Forests Resources

Forests are a handmaid to agriculture. They play an important role in the economic life of a country. They enrich the surrounding regions and also yield commercial products like timber, bamboos, fire woods and infinite variety of medicinal herbs.

The importance of forest resources for the economic and industrial growth of the district can be clearly understood by making an assessment of the forest wealth, which existed and exists in the region. Table 5 explains the position of forests in the district.

Table 5♦ Area under Forests

Year Reserved Forests Protected Area

1880-81 1281 sq.miles 1890-91 1192 » - 1900-01 127 5 - 1910-11 1212 87 «q.miles 1920-21* 1220 „ 88 , 1960-61 3025 » 2U5.»»5 » 1965-66 3 U 8 2k 5 » 1969-70t^ 358683 hectares 192^^3 hectares

Sources: ★ Gazetteer of the Bombay Presidency, Nasik-Surgana, 1922, p. 1. District Statistical Abstracts, 1969“70, p.63 20

The forest area accounts for 22.13% of the total geographical area of the district. The proportions of areas under forests are the largest in the western parts of the district. In I960-6I, Surgana and Peint talukas had about *$0 per cent area under forevts.

Forest Products

The forests in Peint and Surgana talukas produce high quality of teak. Other products are Ain, Hed, Kalamb and

Dhavada» bamboos are also common. Forests in the central zone of the district also produce teak but of inferior quality. In the eastern zone, major parts of the forests are maintained for the production of grass for which special pastures have been formed by the Forest Department. The forests supply firewood and different varieties of medicinal plants. Ayurved Medicines Industry in the district uses all these medicinal herbs in the manufacture of Ayurvedic medicines.

During the last three years, the total value of forest products in the district is increasing steadily, as under:

Table 6 .

rear Total value of forest products

1967-68 36 ,79,000

1968-69 U3,93,000

1969-70 l»U,3*»,000

Source: District Statistical Abstracts, 1969-7 0 , p. 6 3 . 21

The teak wood accounts for of the total forest products.

There are at present 82 saw mills in the district with an annual consumption of approximately 7000 cubic meters of timber. The bigger-size logs are sent outside the district while smaller ones are consumed locally.

During the Fourth Five Year Plan, it has been proposed to increase plantation area under Bamboo by 1000 hectares, fuel wood by UOO hectares, general timber by 2500 hectares and the Eucalyptus by 2000 hectares. The cultivation of tendu trees and alpha and roza grass is also possible.

Production may be increased by the application of new techniques in forestry management.

Mineral Resources

Building stone of good quality and limestone of impure quality are available in the district. Otherwise the district is very poor in mineral resources.

Lime-kiln is the only possibility based on mineral resources in the district. It is reasonable to hope that with a more comprehensive geological and mineral surveys more and more mineral resources can be brought out in

Nandgaon, Yeola, Sinnar and Malegaon talukas for the indus­ trial development of Nasik district.

Agriculture

/^riculture is the most important econoiric activity in

Nasik district as 74 per cent of the people are engaged in 22 agriculture as cultivators and agricultural labourers.

With the extension of irrigation facilities» improvement

in soil conditions and the use of better seeds and much

larger quantities of fertilizers, the productivity in

agriculture is constantly rising.

Land Utilization

The position regarding the pattern of land utilization is given in Table 7 .

Table 7 * Land Utilization pattern (000 hectares)

Category I96I-62 196U -65 1969-70

1 . Forests 3k 1 3U1 31^1 2 . Barren and uncultivable leind 170 172 177 3 . Land put to non-agricul- tural uses .9 1 1 k. Cultivable waste 19 Ik 5- Permanent pastures 37 3k 25 6 . Current fallows 23 23 ko 7 . Other fallows 32 23 38 8. Net Area Sown 906 950 927 9 . Area sown more than once 61* 31 36

Source: District Statistical Abstract, I969-7 0 , pp.23,2U.

The above table shows that in the year 1969“70 the

net ^rea sown was 59*51^ of the total geographical area of

the district. This is good in comparison with the all-

India average of per cent. 23

Crop Pattern

Crop pattern and out-turn of principal crops of the district are presented In Table 8.

Table 8 . Crop pattern in the District

(Area in *00 hectares and out-turn in '00 m.tons)

Crop 19 61^-6 5 1968-69 Area Out-turn iUrea Out-turn

1. Rice 391 U29 3k 0 339 2 . Wheat 872 338 891 193 3 . Jowar 721 213 279 131 k. Maize h8k N .A. ★ N.A. liv 5 . Ragi 11 N .A. N .A. 6. Bajra 3692 13'47 k023 1630 7 . Other Cereals 701 N.A. 692 7k 8. Total Cereals 6377 N.A. 6226 3130 9 . Gram 205 71 2C5 91 10. Tur 68 *♦1 ■59 36 1 1 . Other Pulses 719 N.A. 763 32 12 . Total P'oodgrains 7369 N.A. 72 54 3523 1 3 . Groundnut 670 k7h k70 303 Ik. Sugarcane 101 6k 133 1228 1 5 . Cotton 229 16700 bales 101 5600 bales

Source: District Statistical Abs tracts > 1966-67 and 1969-70 p p . 28 and 3 2 . N.A. - Not Available.

The district has 82 per cent of the area under food

crops and only 18 per cent under non-food crops. The prominent crops of industrial significance are discussed

in detail. Zk

1. Paddy

The total area under paddy cultivation has gone down to 3k ,038 hectares in I969 from 39 >083 hectares in 196t»-6 5 .

The total out-turn of rice decreased from 1»2,900 to 33 >900 m. tons during this period. Kalwan, Sinnar, Dindori,

Surgana, Nasik, Peint and Igatpuri talukas constituted 85 per cent of the area under paddy cultivation in the district<

This is, thus, a crop in the hilly areas of the district.

A number of huller type rice mills have come up in these areas. Now shellar type rice mills can be encouraged in paddy producing areas taking up Improved varieties under intensive cultivation.

2. Sugarcane

The area under sugarcane cultivation increased from

10,132 hectares in I96U-65 to 13278 hectares in 1968-69 with the increased irrigation facilities. It is estimated that by the end of 1973 this area may be I6000 hectares.

The out-turn during 196*^-65 and I968-69 has been almost doubled in the district. The yield per hectare has gone up from 6386 kgs. in 196U-6'^ to 9ZkS kgs in I968-6 9 .

During 196U-65, Malegaon, Baglan, Niphad and Yeola talukas had 73 pox' cent of the total area under sugarcane cultivation in the district. In I968-69, the share of each of these talukas was as under:

1. Malegaon 3053 hectares 2. Baglan 2^82 » 3 . Niphad 3558 „ k . Yeola 1253 „ 5 . Sinnar 803 » 25

Chandor, Dindori and Kalwan talukas are next in import­ ance with 500 to 800 hectares. Nasik taluka has been taking to this crop recently.

With the completion of upper Godavari project, area under sugarcane cultivation will increase considerably in

Niphad and Nasik talukas.

The bagpsse and molasses available from the sugar mills have a further industrial use for the manufacture of paper, cardboard, industrial alcohol and other by-products. At present, the whole of bagasse is used as fuel. Molasses are being allotted for alcohol units in the State. A unit for industrial alcohol can be contemplated st one of the sugar factories.

3 • Groundnut

Groundnut was cultivated in hectares in 1967-68.

But this area has gone up to k7okl hectares in I968-69, which is still far below the area in 196U~65 • Five talukas of Malegaon (8579 hectares), Baglan (8662 hectares), Niphad

(6311 hectares), Sinnar (3960 hectares) and Nandgaon

(2805 hectares) account for 65^ of the total area under groundnut cultivation in 1968-69 •

In Niphad, Nandgaon and Sinnar talukas the area under groundnut cultivation has been steadily increasing during the last three years.

The total out-turn in I968-69 is 30300 m.tons as against 29973 in I967-68. Malegaon, Satana, Nandgaon, 26

Nlphad, Lasalgaon and Saykheda are the Important centres for groundnut.

There are 38 oil mills in the district. The capacity of all these mills is estimated at 60>000 m.tons per annum which is higher than the groundnut productionin the district

Hence, there is ample scope for the expfinsion of groundnut cultivation as there is dependable market in the district

Itself.

Groundnut shell can be utilised for particles-board manufacturing in the district,

U . Cotton

Area under cotton was steadily rising from I960-6I upto 196!f-65 but started declining sharply since I965-66 which can be seen from Table 9 .

Table 9.

Year Area (hectares) Out-turn

1960-61 1 1 ,U00 1,800 m. tons

1961-62 16,900 2,700 >1

1962-63 18,300 18,300 bales

1963-6*+ ?1,800 zh ,800 »

196f*-65 22,900 16,700

1967-68 12 ,73U U ,100 n

1968-69 10,105 5,600

Source: District Statistical Abstracts. 27

Malegaon, Uaglau, Nandgaon and Kalwan are the main

cotton producing areas in the district. Malegaon and

Baglan account for 85 per cent of the area under cotton

cultivation.

The yield per hectare compares favourably with the

all-India figures of II9 kg* as against 297 kg. (I.65 bales)

Unit for the district. But the out-turn has declined very

sharply from l6,700 bales to 5,600 bales between 196U-65

and 1968-6 9 . The main markets for cotton are Malegaon, Satana,

Lasalgaon and Nandgaon. Malegaon cotton is the long staple

cotton which is one of the best varieties grown in the

country. Long staple cotton grown in the district is of

different types such as C02, DevlraJ, Laxmi and Vlrnas.

5 . Fruits and Vegetables

Area of 2J,8k6 hectares, 2.5^ of the gross area sown,

was under fruits and vegetables cultivation during 1967“68.

Onions constitute 1U,830 hectares, potatoes 8^9 hectares,

grapes 613 hectares and tomatoes lyk hectares. The culti­ vation of fruits and vegetables has been steadily increasing

as the central part of the district has developed as a

kitchen garden of Bombay. Fresh fruits and vegetables are

sent daily to Bombay by trucks.

Onions have an overwhelming prominence with Lasalgaon

as one of the biggest onion markets in India with a turn­

over of R s . crores (I.66 lakh tons of onion) in I969-7 0 , 28

Naslk district produces about k lakh tons of onions every year and exports In large quantity.

Nasik is known for i^rapes also. Dindori, Nasik and

Niphad are prominent in grape cultivation.

The area under papaya cultivation has been growing

fast in Yeola taluka.

Livestock

The total livestock population in the district in I96I

and 1966 was as shown in Table 10.

Table 10. Livestock Population in the District (in *00 )

1961 1966

1. Cattle 813.0 800.00

2. Buffalo«8 9 5.1 100.0

3 . Sheep 132 .U 151.0

k • Goats 350.0 3k2.0

•5. Other Livestock 26.1 27 .8

IU20.9

Source: Statistical Abstracts of Maharashtra, I967-68, p. 1 2 3.

The population of milch animals in the district as

stated above produce large quantity of milk in the district,

The Government Milk Scheme Project, Nasik, buys milk through

the Nasik District Co-oporative Milk Producers Union on

an average 70OO litres of milk daily for pasteurising and

bottling. It is supplied to card-holders from Nasik, 29

Naslk Road and DeolaU Camp and the remaining is supplied

to Bombay .

The large quantities of hides and skins from slaughter

houses as well as from dead animals are available but most

of these are exported out of the district in raw condi­

tion as there is no organised tannery in the district.

Therefore, there is ample scope for such unit.

The bones, horns and hooves of the dead animals are

collected and supplied to the two local bone factories at

Manmad.

The district had a poultzy population of 3.68 lakhs

in 1966. There are two Government Poultry Farms, one

each at Nasik and Dindori. Besides, there are 6 private

farms situated in and around Nasik having about 6000 birds

each. This provides wide scope for a poultry-feed manufac­

turing and poultry-equipment making units in the district.

Irrigation

The area under irrigation is increasing very steadily

during the last eight years as is evident from Table 11.

Table 11. Irrigated A r e a in the District (in 000 hectares)

1960-61 1966-67 1967-68

1. Net Area Cropped 907 9Ht 922 2. Net Area Irrigated li3 55 60 3* Gross Area Cropped 970 952 967 U. Gross Area Irrigated 63 79 87 30

The above table shows that during the year I967-68, hardly 6 .5% of the net area cropped was irrigated by ail sources, Pereas the gross area irrigated was 9 cent of the gross area cropped in that year. These percentages indicate the inadequacy of the irrigation facilities in the district. Irrigation facilities on an increasing scale are available only in Niphad, Malegaon, Baglan and Nasik talukas of the district. Godavari and Grirna canals have covered large irrigated area in the district.

Sources of Irrigation

During I966-6 7 , wells were predominant in the provi­

sion of irrigation facilities in the district, which is

shown by Table 12.

Major Projects

There are four major irrigation projects in the district, namely, Chankapur Dam, Darna Dan>, Waghad Tank and Gangapur

Dam. Baglan, Malegaon, Niphad, Sinnar, Yeola, Dindori and

Nasik talukas are benefited by these projects.

The total irrigable area under command of these pro­

jects is estimated at 50,000 hectares and the principal crops benefited are sugarcane, wheat, rice, cotton, fruits

and vegetables.

Another important major Irrigation project proposed

to be completed by I98O is the Upper Godavari Project which will have ^5>000 hectares of irrigable area under command

and a total outlay of about R s . I5 crores. The first stage 31

Table 12 .

Net Area to total (in •00 hectares)

1. Government Canals 167 30 2. Private Canals 16 3 3. Tanks - . Wells 363 67 5. Other Sources 1 100

Soiirce: Statistical Abstracts of Maharashtra State, 1967-68, p. 96.

Irrigation by Crops Gross Area Irrigated (in 00 hectares)

1. Rice i»0 2 . Wheat 212 3. Bajra 10 . Maize 8 5 . Gram k9 6. Chillies 32 7 . Sugarcane 8U 8. Cotton 31 9. Groundnut 8 10.All food crops 662 11.All non-food crops 129 12.Total Irrigated Area (Gross) 791

Source: Statistical Abstracts of Maharashtra States I967-68, p. 9 7 . 32 will be completod by the end of 1973 irrigating Dindorl,

Niphad and Yeola taliikas and principal crops benefited would be sugarcane, groundnut, onions, paddy, wheat etc.

The other two important medium irrigation projects under construction are Bhojapur Project in Sinnar taluka and Dasarwadi Tank in Chandor taluka, irrigating about

3000 hectares area with an outlay of Re, 2 crores.

V. Economic and Social Overheads (Inffa-structure)

The prominent indices of Industrial development in a region are provided by the growth of economic overheads of transport, communication, power, etc. Planning either for a region, for a State or for a country also Implies the provision of these economic overheads or infra-structure facilities in advance as the necessary adjunct to indus­ trial development.

Transport

Transport is as important a basic facility as power for accelerating industrial pro^'ress. Economic and commer­ cial importance of the greatest magnitude is, now-a-days, attached to the development of transport. In fact the whole structure of industry and commerce rests on the well- laid foundations of transport. Thus, effective transport is indispensable for the economic progress of the country.

Industries depend upon transport and the transport development has created new industries in many regions.

In the district road and railway transport play a 33 vital role whloh can be observed from the following- dis­ cussion.

A, Roads

At the beginning of the British rxile there were no made (pakka) roads in the district. The chief lines of conununlcation were through Naslk and Malegaon. Until

I863, the main Agra Highway absorbed most of the funds set apart for roads. But since the letvy of a special cess for local works, road-making made rapid progress. In

1879| there were 10,5 miles of Imperial roads, 213.5 miles of five provincial roads and 275 miles of fourteen local

-1 -1 fund roads in the district.

In 1921, the length of the provincial and Local Board roads as as under : miles 1. Through communication all through the year 250

2. Fair-weather communications only kOh 63k -HH-

The position as on 3ist March I96I could be studied from Table 13.

X^ble 13. Road Length in the District

Kilometers

1. National Highways 242 2. State Highways h9^ 3 . Major district roads 852 4. Other district roads 434 5 . Village roads 238 Total 2260 ^

Gazetteer of the Bombay t^residency, Nasik, I883. » » » +-H- » n Nasik. Surgana. 1922. ^ Statistical Abstracts of Maharashtra State, 1963-64. 34

Present Position

Naslk district is well connected by roads with the adjoining districts of Dhulia, Jalgaon, Aurangabad,

Ahmednagar and Thana in Maharashtra and Surat and Dang districts in Gujarat, The district is linked directly by national highways to Bombay, Poona, Delhi euid Calcutta and thus indirectly to the rest of the country.

Road length according to category classification in the district as on 31st March 1970 was as under t

Kms

1. National Highways 228,2

2. State Highways 588.5

3. Major district roads 9^6,2

4. Other district roads 1076,4

5. Village roads 2004,4 Total 4803.7

Source: District Statistical Abstracts, 1969*70, p. 135-

Thus, the total length of roads per 1000 sq,kms. are

320 kms as on 31-3-1970, which is more than the length in

1966-67, i.e. 213 kms. The ^illa Parishad of Nasik has constructed good many village roads and other district roads during these four years. In addition, the Zilla

Parishad, Nasik, has proposed to construct 128 miles (about

200 kms) of village roads costing about Rs. 20 lakhs during the Fourth Five Year Plan period as a part of the compre­ hensive programme for constniction and improvement of 33 roads in th« district.

B. Railways

According to the Gazetteer of the Bombay Presidency,

1833| "Under the British rule, besides by roads, the district communications have been Improved in 1861 by the opening oT the Great Indian Peninsula (now known as

Central) Railways and in 1878 by the opening, of the Dhond-

Manaiad Railways. The G. 1. P. Railway enters Naslk district at the south'west corner near Igatpurl, and within dis­ trict limits, has a length of about 110 miles. Of 145.5 miles the total length of the Dhond-Manmad line, about

22 miles are in the district, and the rest in Ahmednagar and Poona districts."

Present Position

A broad gauge railway line covers 2lU kms. in the district. One meter gauge railway line starting from

Manuiad goes up to Secunderabad in Andhra Pradesh and the distzmce covered in the district is hU kms. Thus, the total distance covered by the railway is 258 kms., which is

16.6 kms. per 1000 sq.kms. of area as against 16.5 kms. in the country.

The six south-eastern talukas of the district, namely,

Igatpurl, Naslk, Niphad, Chandor, Nandgaon and Yeola have been benefited by this mode of transport.

The railways have contributed a lot in the develop­ ment of trade and transport in the district. The need of 36 railway line is being felt between Nasik-Road and Satpur

Industrial Area and also between Manmad and Malegaon.

C. Air

Air transport facilities have been very recently developed in the district. Daily air service between

Nasik and Bombay has been started. This has provided quick means of transport for the industrialists from dif­ ferent parts of the country.

Communlc at ions

In 1969“70| there were 402 Post Offices and 41 Tele­ graph Oifices in the district. The number of telephone connections given was 3175 only. As compared to the actual demand for telephones, this number o f telephones is very inadequate.

No Telex facility is available in the district.

Power

The extent of electric power development in a country or a region is a definite and positive index of the pro­ cess of economic prosperity {generated in that region and also of the standard of living of the people from that region.

In the State, the development of power was, for a very long period, confined mainly to the urban and indus­ trially developed areas and the progress made in the field of rural electrification, even upto 1966-67, was very meagre. Since then in consonance with the rising demand 37

for power aa a result o f industrialisation and oonuneir-

cialisation, the installed capacity of electricity in

Maharashtra is being augmented. In 1951, Maharashtra

had an installed capacity of 339. 19 M, vi, which rose upto

759.53 M. W. in 1960-61, to 163^.80 M. tf. in 1966-6? and

to 1750 M.W. in 1969-7 0 . By commissioning other six

Thermal and Hydro Power Stations in the State, it will go

up to 3000 M.in the near future. To-day, Maharashtra

stands first in the country with 16.3 per cent of the

country's total power generation.

As regards rural electrification in the state, the

position has been changed very rapidly since I966-67.

At the end of I966-67, the percentage of villages -

electrified to total villages was 18 in Maharashtra as com­

pared to 74 in Tamil Nadu, 39 in Kerala, 25 in Punjab

and Haryana together, 22 in Andhra Pradesh and 19 in

Mysore. The year I968-69 was a record year for the irural

electrification in the State. The Maharashtra State Elec­

tricity Board electrified 2643 places in the State in that

year. Thus, by the end of I968-69, 26 per cent of the

villages in Maharashtra State covering k9 per cent of the

State's population were electrified. Upto December I969,

256 more places were electrified.

Position in the district

The main sources of power supply in the district are

two, namely, the Vidarbha-Bhusawal Grid and the Tata-Koyna 38

Railway Grid through a net work of transmission lines and sub-stations. One diesel station with an Installed capacity of 5339 KW at Naslk Is also an additional source of power supply In the district.

In 1960-61, only 11 towns were electrified In the district. But with an Increasing stress on the programme of rural electrification by the Maharashtra State Elec­ tricity Board, the position has gradually Improved with the beginning of the Third Five Year Plan. This can be seen from the table given below (Table 14).

Table l^t. jftural Electrification In the district Villages electrified year-wise

Taluka 1963- 1964- 1965- 1966- 1967- 1968- 6h 65 66 67 68 69

1. Nlphad 28 16 22 9 - 13 2. Dlndorl 1 6 9 5 - 1 3 . Naslk - 4 15 22 4 10 t h. Ig^url - 1 - --- 5. Chandor - 1 13 17 4 10 6. Nandgaon - 5 7 4 - i3 7. Yeola - U 9 5 4 16 8. Slnnar 2 19 19 5 4 10 9. Malegaon -- - 12 5 22 10. Kalwan -- - 2 2 10 11. Baglan - - - 4 3 27 12. Surgana ------13. Pelnt ------

31 56 94 85 26 132 Souroei Maharashtra State Electricity Board, Naslk Division. 39

The above table shows that the maxlmutn number of villages was electrified In 1968*69 as compared to earlier years. As on 31st March 1969, villages and 15 towns

were electrified in the district. The total number of villages electrified went upto 419 in 1969*70 making the

total number of villages and towns electrified

covering 11.7 lakh population in the district.

It is surprising to note that not a single village

has been electrified in Feint and Surgana talukas. Larger

number of villages have been electrified in Niphad, Nasik,

Sinnar, Chandor and Yeola talukas. In the remaining

talukas, the number of villages electrified ranges from

one (igatpuri) to 39 (Malegaon).

Consumption of Electricity

The power consumption in the district has increased

from 166.3 lakh Kiffl in 1961-62 to 307.8 lakh KwH in 1966-6?

and to 690.0 lakh KWH in I968-69. The per capita consump­

tion of electricity has gone up from 9 KWH in I96I-62 to

36.1 KWH in 1968-69, which is still very low as compared

to 135 KWH in Maharashtra and 72 KWH in our country.

The purpose-wise consumption of electricity in the

district is given in Table 15.

From the above table, it seems that consumption of

electricity for the industrial use is increasing fast.

It was only 83.7 lakh KVH in 1961-62, but increased to

237.0 lakh KWH in I968-69. This indicates that during 40 the last nine years there has been an accelerated Indus' trial development in the district.

Table 13. ConstuHptlon of Electricity in the district

(in lakh KWH)

Purpose 1961-62 1966-67 1968-69

1. Domestic 37.5 43.6 78.1 2. Commercial, Lighting and small power 32.3 41.9 37.2

3. Industrial 83.7 101.4 237.0 k. Public Lighting 8.5 9.9 78.5

5. Irrigation and other 4.3 111.0 238. 2

Total 166.3 307.8 690.0

Source: Maharashtra State Electricity Board, Nasik Division.

Eklahra Thermal Power Station

The demand for power is increasing very fast due to the spurt in industrial, commercial and agricultural * activities in the State, and particularly in Nasik district.

To enable the Maharashtra State Electricity Board to meet this growing demand for power, the Maharashtra State

Electricity Board has executed the 280 Ml*^ Nasik Thermal

Power Station Project at Eklahra, near Nasik-Road. The

Station has started generation activity in August 1970.

Its total cost is Rs. 52 orores at the final stage as against the estimated cost of Re. 35>63 crores.

The capacity - 280 MW - of the Station has been made

Th 3^3^ 41 up by installing two turbo-alternator sets each of 140

MW. The station has been completed with cooling towers, coal and ash handling plants, other ancillaries and a township. A separate Kailway siding from the Nasik-

Road station has been laid down for the transportation of coal and other materials for power generation.

This station generates power for the industrial development in the Stato and particularly in the district.

Technical Training

Skilled workers have become a need of the modern industry because on them rests the development of industry and the quality of the product. b/ithout skilled workers one cannot imagine the existence of modern industry. For this reason much more emphasis has been given in our

Five Year Plans on giving of technical training to workers.

To impart such training many Industrial Training Institutes have been established under the Craftsmen Training Scheme.

These Institutes are playing their role in developing

'skill* in industrial workers.

One such Industrial Training Institute was started at Nasik in I96O-6I with only two trades, viz. Fitter and Turner, with 28 intake capacity. Thus, a very small beginning was made by the Institute. The real expansion work started during the Third Five Year Plan with an additional intake of 3OO trainees. By the end of the

Third Plan period, the total strength of trainees was 372 42 and staff members. At present, there §r* more than

1100 trainees getting training In 26 trades from more than

155 staff members. The development of this Industrial

Training Institute during the last eleven years is given in Table 16.

Table 16. Development of Industrial Training Institute, Nasik

Year No. of Trades Total Number of Trainees

1960-61 2 31

1961-62 7 134

1962-63 12 147

1963-64 15 263

1966-67 22 752

1970-71 24 1104

1971-72 26 1106

Source: Industrial Training Institute, Nasik.

Some trades such as welder, diesel mechanic, motor mechanic, sheet-metal worker, moulder and stenography are of one year's duration, whereas some trades such as fitter, turner, machinist, pattern-maker, draughtsman, wireman, etc. are of two years* duration. The Nasik Industrial

Training Institute is recognised as one of the major

Training Institutes in the State.

The Institute is located in the Industrial Area, Naslk and has invested more than Rs. 68 lakhs in plant, machinery, equipment and buildings. It ia now satisfy­ ing the ever increasing demand for trained workers in the district, and particularly of the Nasik Industrial

Area.

The Industrial Training Institute, Nasik has plans to introduce a few new trades such as Tractor Mechanic,

Building Constructor, Mechanic - Radio and Television and

Watch and Clock Repairer in 197 2-73, making provision for at least 1300 trainees at Nasik.

A piece of land of JO acres has been reserved for a

Polytechnic at Nasik.

Management Education

Management skills are a key element in economic and industrial advance of any country. According to Dr. J. E.

Stepanek 'in the newly industrialising countries manage­ ment is relatively an even more important factor. Raw materials are abundant in some countries, scarce in others, but in no case are fully exploited. Technology and capital can be imported, and the labour supply - at least the sup­ ply of untrained labour - is often over abundant. But the growth of managerial skills has not kept pace with aspirations for industrial growth .... that capital can be supplied faster than the economy can supply administra­ tors and entrepreneur - managers. * He further says that the industrial revolution cannot be imported whole. kk

Change must come from vrltiiln through the development of human resources. This is absolutely true in the case of our country, and more particularly, in the case of deve­ loping regions. tife find that human resources are not properly exploited as compared to other economic resources.

There are thousands of unemployed or underemployed persons whose talents lie idle or undiscovered. At the same time we find that there is a vast scope for improving mana­ gerial, professional ana labour skills in our country.

For this purpose some concentrated efforts and education are necessary. By imparting education and training, we can develop these required skills in our people for the rapid and smooth industrial growth. Particularly most of the industries in developing countries need better and efficient management. It is more true in the case of small scale industries. Many industries fail not only beeause of bad technology, but mostly due to poor management.

Therefore, these industries need managerial skills.

M. B. A. Course

As there was no industrial development in the district for a very long time this aspect of management education was totally neglected. But with the development of new industries in and around Nasik, this need was very much felt by many. Because of this need for managerial skills and foresight on the part of many educationists, first independent Commerce College, namely, B. Y. K. College of k5

Commerce, was started in 1957, at Nasik. This was the first college imparting purely comxuerce education in a mofussil area like Nasik district. l:.ncouraged by this success many new composite colleges have come up in the district. Then in 1967-68, Principal Dr. M. S. Gosavi, an eminent educationist and economist of this area, started

Business Management Course in the B. Y. X. College of Commerce, attached to the University of Poona. This is the first non-Government college conductin^^, this course in our country independently. This full time course is of two years' duration and for every batch 30 students from different faculties are selected and educated every year.

Case-study has been given vital importance in this course.

Now the first two batches of M.B.A. students are out in

the field of industry. Local industries, particularly medium and large-scale industries, are getting M. B. A. people at the source only. This College has supplied

M.B. As. to Poona and Thana Industrial complex. In this way, the need for managerial personnel is being fulfilled by this institute in its humble way. In days to oome

industrial complex from this region would be benefited by it on a large scale.

Banking Facilities

Banks help the process of industrialisation in any

region by meeting the financial requirements of various

industries. Banks mainly supply working capital but during k6 the last few years under Jolnt-partlclpation scheins with the State-Industrial and Investment Corporation of Maha­ rashtra some leading nationalised banks have started providing medium and long-term finance to industries in the district.

There were 32 branches of commercial banks and 71 branches of co-operative bcoiks in the district in I967-68.

This number rose upto 39 and 73 respectively in I968-69.

Now in June 1971, there are 58 branches of nationalised and other commercial banks and 75 branches of co-operative banks.

The State Bank ot India has 16 branches, Bank of

Maharashtra 11 branches with a Regional Office at Naslk-

Road, Dena Bank 9 branches and the Nasik District Central

Co-operative Bank has In all 44 branches. There are 17

Merchants' Co-operative Banks in the district. The other leading nationalised banks such as Punjab National Bank,

Bank of Baroda, Bank of India, Central Bank of India,

United Commercial Bank and Union Bank of India also have their branch offices at different important industrial centres of the district. Most of these branch offices are at Nasik, Nasik Road, Malegaon, Manmad, Lasalgaon, etc.

The number of branch offices in the rural area is expected to increase within one or two years as the Bank of Maharashtra has been declared as a 'Lead Bank' for the district. This bank has a plan to open four branches at ^7

Malegaon, Manmad, Siniiar and Yeola before March 1972.

A survey of other 23 places has also been completed by the bank for the branch expansion programme.

The Nasik District Central Co-operative Bank provides financial assistance to the industrial co-operatives in the district.

Along with these banks, other financial institutions like SICOM, M. S. F. C. etc. are also supplying institutional term-finance to different industries in the district.

Land and Water

The discussion of infra-structure would be incomplete without referring to land and water. In the district, the

M. I. D. C. has developed one Industrial Area and one Indus­ trial Estate at Nasik, naturally required land is available.

Two more Industrial ii;states have been proposed at Malegaon and Manmad. Therefore, there would be no problem of cheap land.

At most of the growth centres and towns, there is piped water supply in nine out of 11 municipal towns and from wells in other towns. Thus, there is no scarcity of water.

VI. Terminology

Two words, namely 'Industry' and 'Unit' are frequently used. The word 'Industry* is used as an aggregate of firms or factories producing identical products or working on a common raw material. For example. Sugar Industry. This 48 industry, in the district, comprises o f three factories.

The £ngijieering Industry includes hardware units, engineer­ ing workshops, etc.

The word *unit' denotes a single factory or a firm engaged in the production of a particular commodity. For example, soap manufacturing factory is termed as ’soap unit’. It is a primary unit of a particular industry, under single or unified control.

VII. Methodology

A suitable and detailed ^.uestionnaire was prepared to collect information and was sent to 637 units - small, medium and large-scale - in the district, with the help of the list of units prepared from the information supplied by the District Industries Office and the Factory Inspector’;

Office, Nasik. In view of this, the information from 4ll units has been collected. Therefore, response to this survey was more than 62%, which is indeed remarkable for such voluntary survey undertaken by an individual.

This was followed up by personal visits to industrial units to acquaint with their actual difficulties and pro­ blems. Personal visits to different places like Maleg;aon,

Satana, Manmad, Yeola, Lasalgaon, Pimpalgaon, Ravalgaon,

Dabhadi, Niphad, Sinnar, Nasik Road, Deolali, Ozar, etc. were arranged twice in I970-7 I. Nasik city was covered

in full. Almost all the units in the Nasik Industrial

Area and Industrial Estate have been personally visited. h9

Present position, problems, future scope etc. aspects were personally discussed with the entrepreneurs.

Official information made available by the Indus­ tries office, the Factory Inspector's office and the District

Statistical Office was made use of whenever and wherever necessary. The facts and figures appearing* in the work, therefore, can be taken as representative of the condi­ tions prevailing in March 1971.

Personal inteirviews were arranged with certain important officials from the district such as the Collector and the Deputy Director of Industries, the President, ^.illa

Parishad, Nasik, the Chief Officer, z.. P. , Nasik, the

District Industries Officer, the Factory Inspector and the

Assistant Labour Commissioner, Nasik. In addition to this, interviews were also arranged with many eminent persons from the district. To mention a few are Shri S. M. Bathi,

Chairman, Nasik Industrial Co-operative Estate, Shri D. S.

Potnis, Director, Western Maharashtra Industrial Develop­ ment Corporation, Shri M.S.Gujarathi, Area Officer,

SICOM, Shri P. Variya, Director, Non-Power Soap Manufac­ turers ' Association, Bombay, frhri S. B. irfaje and Shri D. B.

Sarda, Bldi Industrialists of the district, Shri M. B.

Prachand, Divisional Manager, Bank of Maharashtra, Shri

Y.N. Jadhav, £x-M. P. , Malegaon, Shri B. C. Brahmecha,

Lasalgaon, Shri D. B. Patil, M. U A. , i^asalgaon, Shri Karkare,

Nasik Regional Planning Board, Shri Bidkar, Nasik, Shri 50

Bhatta, Managing Director, Imanes (P) Ltd., Shri S. S.

Taparia, Director, Bahco-Taparia Tools, Ltd. and so on.

Printed literature - Government and non-Government has also been used for the purpose of understanding the position of industries in the district. Besides various sources of published information have been used and they are indicated in the footnotes and the bibliography. As the thesis is mainly based on field work, much reliance has been put on the first hand information and data collected from different industrial units. CHAPTER II

HISTORICAL DBVSLOPMENT OF INDUSTRIES IN THE DISTRICT 51

Xt is proposed to give a broad outline about the

Industrial development that has taken place| upto March

1971 in Nasik district. Although the district was known

as 'industrially backward district* of the State of Maha­ rashtra for a very long time, it was, at one time, very prosperous and famous in many 'crafts'. Here, an attempt is made to trace the history of industrial growth in the district by analysing and explaining the important phases

and instances in the development of industries.

The development distinctly falls into three phases, viz.

(l) prior to 19**7 > i.e. before Independence,

(II) From 19hl to 1962, and

(III) From 1962 to March 1971.

I . Prior to Independence il9k7)

Prior to 191t» : An Kra of Prosperous Crafts

According to the Gazetteer of the Bombay Presidency,

Vol. XVI, Nasik (I883), there were fourteen prosperous

crafts such as copper and brass vessel-making, silk working, silk dyeing, silk weaving, gold and silver thread making, carpet making, dyeing, calico printing, blanket weaving, paper-making, lac works, etc. In the year 1872, about

35,000 craftsmen were engaged in these various crafts.

It would not be out of place to study, in brief, the position of each craft and the craftsmen engaged in it. 52

Copper and Brass Works

The making of copper and brass vessels was one of the Important £md prosperous crafts of Nasik. Besides supporting a very well-to-do class of Kasars> this

Industry gave employment to three sets of workmen, viz.

Tambats, the makers of large articles, Kalalkars, the makers of small articles and Charakwalas, workers on the lathe or polishers. Most of them were settled at Nasik and Qzar. Six hundred and eighty-one Tambats (Kasars) were engaged in this craft.

These wares were in fairly constant demand, with an yearly business season In September and October and also in marriage season. Beauty of shape and polish were the chief excellences of these wares. About l,71*f copper­ smiths were engaged in this trade and industry.

Silk Manufacturing

Silk manufacturing, one of the most Important indus­ tries of Nasik, was supporting about f^,000 families at

Yeola, Nag, Balegar, Andarsul, Bharan and Mukheda. The manufacture of silk at Veola dates back to the beginning of the l8th century. In 1882, Yeola was the chief centres of this industry with about 92 5 looms. Since 1861^, many classes of outsiders had taken to silk weaving. Raw silk was brought from China, Bengal and Persia, and was woven at Yeola. Silk dyeing was also done at Yeola.

Weavers weaved Paithanl, pitambar and K a d . The 53

Palthanl of Yeola was the famous fabrics of Maharashtra at that time and was very much in demand. The annual sales were estimated at Rs. 15 lakhs.^

Gold and Silver Thread-making

The making of gold and silver thread was fairly pros­ perous in Yeola. Even today there are a few families engaged in this work. Its establishment dates back to the year 1936. The first gold-thread factory was opened at 2 Yeola on 6th January 1937 by Shri R.S.Basvande of Paithan.

In 1880> the industry was supporting about 600 families.

The gold and silver usod in making gold and silver thread was brought from Bombay. The silk used in making gold­ thread was spun by local people. There were about seven such establishment.

This gold-thread vas mostly consumed by local weavers and shopkeepers. It was used chiefly in ornamenting turbanj the borders of Paithani, Pitambar, Sarees, etc.

Cotton Goods

The cotton goods manufacturing activity supported about 5,000 families mainly at Yeola, Malegaon, Nasik,

Chandor, Sinnar and Dindori. Malegaon amd Yeola turbans had a very good name and so, were sent to Khandesh and

Bombay. There were about 2,000 looms at Yeola, 2 ,U’*0 looms at Malegaon, 20 looms at Chandor and 1^0 looms at

1 The Gazetteer of the Bombay presidency - Nasik - 1883. P. 2 Ibid., p. 162. Naslk. The main articles manufactured were turbans, robes I bodices, etc. Except turbans, for other articles the demand was of local nature. The economic position of the weavers engaged In this activity was far fronj satisfactory.

Carpet Making

About 50 families were engaged In the manufacture of white carpets at Malegaon. These were of different sizes and wera sold locally. Tho econoralc condition of these carpet weavers was very bad.

Dyeing and Calico Printing

About 220 families were found to be engaged in the cotton dyeing work at Malegaon, Yeola and Naslk. They were of three classes - Indigo dyers, morinda dyers and safflower dyers. The indigo dyers were found in Malegaon, and Yeola, the morinda dyers only in Malegaon and safflawer dyers were found in Naslk.

Calico printing was done by about 6 families of safflower dyers at Malegaon. This was done with the help of wooden stamps or moulds having different carved d<3signs.

The only articles printed were pasodas, phadkis and jajtjus used as carpets. But the competition from foreign articles started by that time.

Blanket weaving

It was one of the important crafts of Naslk as these blnnkets were constajitly deiiianded by the lower class 55 people because of their cheapness and warmth. Although foreign articles were imported, no particular adverse effect was there on the demand for locally manufactured blanlats. It was one of the prosperous industries of the district.

Paper Making

Paper*making, introduced in the year 1800 by Shri

}3alaji Abaji, was once an important and prosperous craft at Nasik. But in the year 1882 there were only five paper factories producing/in the district. The paper was made

from rotten gunny bags. It was coarse and yellow, but strong and durable. It was used in Government offices too

There ware about 2 50 workers working in this industry.

By 1882 this number dwindled to 2 0 .^

Another Important craft was that of Lac working.

Lac bracelets were manufactured in large number.

This shows that these handicrafts flourished during

this period. But with the establishment of the British

rule, the whole situation underwent rapid changes. The

tastes of our people changed and the demand for our local

handicraft products started declining very fast. This was particularly noticed in the case of copper and brass utensils, silk articles, etc. This position worsened by

the construction of railway lines in 1861, connecting

Bombay with Nagpur. This dislocated the self-sufficient village economy and flooded different parts of the region

3 Ibid., p. 163. ■56

K»«n competition started between the locally manufactured articles and foreign articles. This adversely affected the very existence of these handicrafts and village industries in this region. Machine-made goods were very cheap I uniform in design and quite attractive. The real decline started in the second half of the 19th century and by the end of the century many handicrafts disappeared altogether. As a result many craftsmen were hit hard and converted into ordinary workers.

But the Improved communication and transport facilities gave a philllp to agriculture because cultivation of some iaqportant cash crops was undertaken by the agriculturists in large areas, creating a base for future Industrial development. Cotton, wheat, groundnuts, sugar-cane culti­ vation was started on a large-scale as there was a large demand for these crops. The area under cotton cultivation had increased from 2666 acres in I875-76 to 5022 acres in

1878-79* Sugar-cane was also grown in 77U9 acres in 1879“

80. Grape cultivation was also there, but on a very small- scale .

The railway has played and is still playing a very

Important role in the development of Naslk district. It has facilitated inflow and outflow of various commodities and raw materials. Naslk Road, Oeolali, Niphad, Lasalgaon and Manmad stations are the importeuit stations on the line, helping agriculture and industry in the adjoining areas. 57

Naslk Road station renders valuable services to Naslk

industries. Lasalgaon Is the despatching centre for onioas,

About 1 lakh tons of onions are sent out from Lasalgaon by railway. Maninad has helped powerloom Industry and ginning and pressing factories In Malegaon.

The industries of Naslk retained something of their

former Importance. Although owing to the competition from machine-made goods, the manufacture of paper declined con­

siderably. The silk Industry was hard hit. But cotton handloom Industry was still carried on with success at

Malegaon, Yeola, Naslk and Slnnar. In copper and brass utensils, Naslk ranked the first among the towns of the

then Bombay Presidency.

There were no large-scale Industries In the district.

It Is seen from the Gazetteer of the Bombay presidency,

1883> that there was one cotton press at Manmad which was

fed by cotton from Khandesh region. About this factory

there Is no further reference in the Gazetteer of the

Bombay Presidency which was published In 1826. This shows

that the unit must have been either closed down or shifted

to some other place In the district about that time.

There were two railway workshops, one at Igatpurl

and the other at Manmad. The Igatpurl Locomotive Itork-

shop was of a considerable size with an investment of

about R s . 4 lakhs and about 1^00 workers. Now these two workshops employ more than 12 00 workers. 58

Bldl Indttstiy

Another very Important landmark In tbe history of the development of industries In the district was the development of the Bldl Industry at Slnnar in the year

1900-1901• Late Shrl Balajl Ganpat ¥aje started a small bldl manufacturing unit at Slnnar with only two workers.

It was the small beginning of this 'labour-intensive* and cottage industzy at Slnnar. Then, late Shrl Bhikusa

Yamasa Kshatrlya and Shrl Bastlram Narayandas Maheshrl from Slnnar took the lead in the development of this industry in the whole district. In the beginning bldl factories were located at taluka places, but then late

Shrl B.N.Maheshrl located the first unit in a small village near Slnnar and since then, many branches have been opened in different villages of the district. Slnnar taluka is mainly known for bldl-making. At present, within

70 years, the industry has grown into a very big size employing more than 19000 workers in factories in the district. The Naslk bldl industrialists have not restricted the field to Naslk district only, but have opened their branches in Jalgaon, Ahmednagar, Ohulia, Sholapur and other districts in the State and some branches in Andhra Pradesh also. At present, the total annual production of bidis in the district is worth more than Rs. U crores.

Over and above this cottage Industry many such small cottage or village industries were spread all over the district. These were carpentry, smithy, leather work, 59

tanning, flaying, oll-ghanls, handloom and wool weaving, rope making, bamboo works, bee-keeping, pottery and bricks making and khadl Industry. These units were providing household employment and livelihood to those who were

engaged In these activities. These industries were con­ centrated particularly in Baglan, Nandgaon, Dindori, Kalwan,

Niphad, Yeola and Chandor talukas.

Due to many reasons their decline started very rapidly

and the whole cottage industry was adversely aflected.

People preferred mill oil to ghanl oil, artificial fibre

to ropes, mill cloth to handloom cloth, plastic articles

to wooden toys, etc. Thus with the change in the tastes

of the people, the demand for goods produced by the village

industries declined. Secondly, marketing was a main pro­ blem before these industries as the cost of production was very high as compared to the machine-made goods. Thirdly, with the development of modern and big Industries in the

country, it became impossible for these small units to

compete with their products. All these and many other reasons, such as breakdown of the self-sufficient economy, widening 4f markets, availability of many new things in the market, etc. contributed to the rapid decline of the village

industries after 191*t> and particularly after 19*^7.

To safegufkrd the interest of village industries and to promote the growth of these industries in the znijral areas,

efforts were made by many organisations, particularly to 60

train village artlssms In certain trades some training

centres were started by the District Local Board. Train­

ing schools for rope-making and fibre works, tanning, wood turning and lacquer works were run by the Community

Development Blocks, but because of the poor response and decline of the cottage Industries, these schools were, very recently, closed down by the Zllla Parlshad.

Some cottage units and cooperative societies still

exist at certain places In the districts which are financed by the Zllla parlshad under the State Aid to Industries

Rules and by the Khadl and Village Industries Board.

An Era of »New* Industries (1911!»-19U7 )

The period between 191t» to 191^7 saw the beginning of

some real agro-lndustrles, engineering Industries and a

few large-scale units In the district. Up to 192I many

ginning and pressing factories were started In the cotton

growing areas of Malegaon and Nandgaon talukas.

The location and nature of the factories In the district In 1921 and the number of workers employed Is given on next page.

This shows that In the year I92I there were 8 ginning

and pressing factories employing more than 5I0 workers In

two talukas. This was due to the large-scale cultivation

of cotton In these talukas. Then an oll-ml11-cum-ginning factory was started at Satama. There were number of small

oil ghanls, agricultural equipment units and handloom 61

Town No. of Type of Factory No. of factories workers

Igatpurl 1 G.I.P. Railway i»25 Locomotive Workshop

Manmad 1 G .1 .P .Railway Girder *♦29 Workshop

Malegaon 2 Ginning Factory 38

Zodga 1 Ginning Factory 110

Nyaydongari 1 Ginning Factory N .A.

Nandgaon 3 Ginning and pressing . 266 Factories Malegaon (Kannad) 1 Ginning and Pressing 96

10 136U

Source: The Gazetteer of the Boiubay Presidency - Naslk and Surgana - 1926, p. ill. weaving units In the district. At present, the number of these tinning and pressing factories has gone up to 20 at

Malegaon, Nandgaon and Satana. The number of oil mills has Increased to 3^•

There was, In the year 1920, an acetone factory at

Naslk Road which was later on transferred to the Central

Govemment Dlstlllary.

In the year 1921 one Co-operative Bank was started at Naslk with 131 members and paid up share capital of

R s . 8880. Within a period of four years, this number of members went upto I5I with paid up share capital of Rs.17620.^*

3a The Gazetteer of the Bombay presidency - Naslk and Surgana, 1926, p. 56. 62

It is reported that this bank was working upto 19lf8-U9

only.

Large-scale Units

With, the introduction of motive power in the district,

the real development of agro-processing and other industries

took place from I923.

The first noteworthy addition was that of the India

Security Press at Nasik Road* In the year I923> the Govern­

ment of India selected Nasik Road for locating this preas.

The constzniction work of the press building commenced in

September 192H and the actual printing work started in

November I925. In the year 19251 the total capital invest­

ment in this press was of Rs. 27.5 lakhs, which has gone up

to R s . 195.70 lakhs in the year 1970-7I. In I928, the

Central Stamp Stores came to Nasik Road in the press build­

ings. In 1928 the printing work of currency notes was

first taken up in our country at Nasik Road. Then the

expansion began and the New Currency Note Press was ^started

in 1957* At present, the India .Security Press at Nasik

Road provides employment to more than 7000 workers and 1000

executive staff. This press has enhanced the Importance of

Nasik and Nasik Road in the country. Formerly, Nasik was

known only as a pilgrimage centre. This was the first

large-scale printing unit of its kind in the countiy providing employment to thousands of workers from this

region. 63

Sugar Industry

The first large-scale industry was started in the

district in the year 1933 when the Walchand Group took

the lead in starting a sugar factory at Ravalgaon (Taluka

Malegaon). This was the first sugar factory in the district

with an installed crushing capacity of i;o tons of sugar­

cane per day. Till then there were only 31 sugar factories

in the whole country. The Ravalgaon Sugar Factory acquired

a large area for sugar cultivation near the factory site

and started cultivation of sugar-cane by mechamised farm­

ing system. This factory gave an impetus to agriculturists

to grow more sugar cane in the district. At present, its

installed capacity is ten times the’ original capacity and

it provides employment to more than 7 30 workers.

Along with this development some modern industries

were also developed in the district. In 1933> the first

'modern foundry* was started at Nasik by late Shri Kshirsagar.

Very few such foundries were in existence in Bombay and

Bhivandi. This foundry was zmn only for 18 months. Due

to financial difficulties and non-availability of skilled

workerS} it was closed down. Then in 1943, one Shrl Gothi

took the lead in the development of big sized foundry unit

at Nasik. Its installed capacity w^s 1 ton of casting per

day and it employed 125 workers in 192^5 . Since then many

foundry units have come up in the district at Nasik, Nasik

Road and Malegaon. One cement tiles manufacturing unit 6k

came up In 19U3 • One oil mill was started at Lasalgaon In

1935 and since then many oil mills have been started at

Naslk, Malegaon, Satana, Lasalgaon, Nandgaon and Slnnar.

The first 'Soap' unit of the district - 'Oesal Soap Factory*

was also started In the year 1936. But It was not success-

fUl. Then In 19t«.0 the second soap unit, namely, the Hind

Soap Factozy, was started at Naslk. There were only 3 soap then units in the whole district In the year 19^2. Since/as

many as lU units have been started and working in the

district. Another noteworthy development was that of the

Ayurvedic Medicine Industry in the district. The Ayurved

Seva Sangh undertook the production of Ayurvedic medicines

in the year 192^6 . Saw mills were started at Naslk as com­

posite units in this period.

In 1936, the first Insurance Company, namely, the

Sahyadri Insurance Company, was established by Shrl G.G.

Saundankar and Shrl V .K .Joshi at Naslk. The company has

played a vital role in the promotion of Industrial and educa­

tional activities in the district, particularly at Naslk.

This company was later on nationalised.

powerloom Industry

The period between I9IU and 19*1’7 has witnessed the

beginning of the powerloom industry in the district. The

first powerloom unit was established in 1936 at Malegaon.

This unit was run with the help of diesel engine. Since

then this industry has developed very steadily upto 19k S , 65

There were 10 power looms in ttie year 193^. This number went upto 2000 in 19f^0 and 1^000 in the year 19U8 . After i960, there has been a rapid growth of this industry as there are more than 20000 powerlooins in the district mainly concentrated at Malegaon and Yeola. With the understsmdin^ of the benefits, many handloom weavers converted their hand* looms into powerlooms . In the year 196? , out of 9^579 powerlooms in the State, about I8000 powerlooms were in

Nasik district providing employment to more than 40,000 persons. Coloured sarees manufactured at Malegaon have nation-wide demand.

With the developnant of powerloom industry, the hand­ loom weaving started declining during this period. The weavers of Yeola, particularly, had very bad days. Due to very keen competition from the machine-made vessels and aluminium utensils, the brass and copper industry started losing ground during this period only. There were hardly

120 katrkhanas at Nasik and Ozar employing about 600 workers in the year 1946. These units were run purely as 'house­ hold' industry. Other handicrafts such as gold euid silver thread-making also showed sharp decline as the number of units was hardly 10 to 12 at Yeola producing threads of the value of Rs. 2 lakhs a year. At present, hardly 3 families are engaged in this activity. There were a number of units making gold and silver articles and ornaments at Nasik employing about I50 highly skilled artisans. But now there 66 ar* hardly 5-6 units engaged in ttii* . Shrl Y.S.Pandit in his book entitled •Economic Conditions in Maharashtra and Karnatak' writes that 'most of these industries are of long standing, but these industries have a number of defects which seriously undermine their prosperity. They are utterly disorgautiisedi the tools and methods used by the workers are primitive and hence inefficient and uneconomic and there is a complete lack of facilities of finance and marketing. Almost all of them are out of touch with the condition of their markets and naturally the demand for their products is fast diminishing with the change in the tastes and customs of the society.' All these defects led to the decay of these Industries in the district.

Therefore I in brief, the period between 191^ &nd 1947 did show the development in the organised sector but at the saune time it witnessed the fast decline of our old prosperous handicrafts. Before independence, there was Just a small beginning of modern industries in the district.

Otherwis'e it was industrially a backward district of the

State.

The historical growth of industries in the district before Independence revef^ls many things. The first thing is that before Independence, the district was industrially backward in a true sense of the term as there were only two large-scale industries in the district and a few small units at Naslk and Malegaon. At other places, such as Yeola, 67

Manmad, Nandgaon, Satana> hardly one or two small units, mainly agro-processing, were located. Secondly, there was

lack of entrepreneurial skills and abilities in the dis­

trict. It seems that industrial development was initiated

by the outsiders and also by the Central Government by

locating the Ravalgaon Sugar Factory by the Walchand Group

and the India Security Press by the Central Government.

The agro-processing units like ginning and pressing factories,

oil mills, etc. were owned and managed by the traders or

merchants who were directly dealing in those products. This

shows that the enlightened entrepreneurial class was absent

in the district. Thirdly, conditions prevailing in the

district, like water supply, transport facilities, cultiva­

tion of cash crops etc. were very favourable for the rapid

development of industries, but for the want of Industrial

leadership at the district level, neither such efforts

were made to undertake industrial development nor any such

plan was put before the Government for the industrial

development of this region. The political leaders lacked

foresight and planning required for the economic growth of

this district. More and more attention was paid towards

agricultural development. Only exception to this was

late Shri Bhausaheb Hiray, the former Minister for Co­

operation of the then Bombay Province. Fourthly, credit

facilities were not available in adequate measures. Banks

were lending more and more money to trade and business. 68

Due to this apathy of banks towards industries the develop­ ment was rather very slow. Banking facilities were

developed at a very few centres like Nasik, Nasik Road>

Manmad and Malegaon. Lastly, those who were having their

own capital and abilities to undertake industrial activity

were interested in 'traditional* industries such as Bidi

making, oil mills, copper and brass utensils, bakeries, powerlooms, etc. Because of this attitude, there was multiplication of these industrial units, that too very

slow. They were not eager to go out of the way to develop

any 'modem* Industry in the district. All these and some

other reasons such as absence of power supply in rural

area, etc. were responsible for the industrial backwardness

of this district.

II. Period from 19U7 to I962

Since Independence some radical eind desirable changes

have taken place as regards industrial economy of the dis­

trict. Another Government of India Undertaking was located

at Gandhinagar, about 3 miles from Nasik. This Government

of India Press was started in the year 191^8 . This is one of

the fifteen presses of the Government of India in the

country. The Goveztiment of India had initially invested

Rs. 2.5 crores for the establishment of this press at Nasik

and provided employment opportunities to 200 persons from

the region. Now the same unit is having a total capital

investment of R s . 7.5 crores with I500 workers. Then 69

followed the development of some small units of diversified nature such as the Diajnond Rioe Factory (19U8 ), the Seva

Pharmacy, Ltd. (1948), the Trio Pharmaceutical Works

(1950), the Hind Cement Tiles Works (I952), the Mohan Soap

Factory (1952), the Indian Hume Pipes Factory (l95*^)i

Shri Krishi Sadhan (191^8 ), the Robin Products - the only

Biscuit manufacturing unit (1957) etc. at Nasik and Nasik

Road. Two bone mills at Manmad were started in 1952 and

1956 respectively. One foundry was started in I959 at

Malegaon, and many agro-processing and agricultural equip­ ment manufacturing industries were staxted at different centres in the district.

In the year 19>50 one District Industrial Development

Association was formed under the Chairmanship of wellknown

Journalist and industrialist Shri D.S.Potnis at Nasik. The

Association in the initial stages took keen interest in the development of small-scale industries in the district by promoting weavers' societies, artisans' societies, etc.

The Association also took part in the organisation of

Industrial Seminar at Nasik in the year 196I but soon owing to lack of interest among the members, it could not function properly and since then no activity by it.

The main difficulty which was faced in the develop­ ment of industries, particularly the small-scale industries, was that of shortage of finances. To solve this problem it was decided by some progressive persons at Nasik to 70

start one Industrial Cooperative Dank in the district in

19*53. The Government had given permission for such banks

at Sholapur and Surat. But when the proposal of this Bank

at Nasik was placed before the Government for its approval,

the policy of the Government regarding Industrial Coopera­

tive Bank was changed and so this idea could not materialise.

This Bank could have played vital role in the development of

industries in the district because other commercial banks

were collecting deposits in the district and were distri­

buting as loans and advances in Bombay. They were not

lending money to local industries. But unfortunately this

idea of Industrial Cooperative Bank was set aside by the

Government policy.

Industries Office

Prior to 1939 there was the office of the District

Industries Officer at Nasik. There were only five such

offices in the whole of Bombay Province. This office was

there upto lU-1-1951* It shows that the Government of

Bombay Province had understood the potentialities and

importsmce of Nasik for the industrial development. Then

from 15“1” 1951 the office of the Assistant Director of

Industries was located at Nasik as a 'Sub-Regional Office'

for eight districts namely, Nasik, Dhulia, Jalgaon, Ahmed-

nagar, Kolaba, Ratnagiri, Surat and Dang. This was shifted

to Bombay in October 195^ its place one sub-regional

office for three districts - Nasik, Dhulia and Jalgaon - 71

was kept at Naslk. But by the chf^nge In the Government

policy in I962, for each district a separate office of

the District Industries Officer was sanctioned and since

then the District Industries Office is working through its

five divisions covering 13 talukas of Naslk district.

Similarly, the District Labour Office and the Factory

Inspector's office were also established at Naslk in 1956- 57. Co-operative Sector

After 1950, it se^is that some developments have

taken place in the cooperative sector in the district. This

was not because the spirit of cooperation was there among

the agriculturists, but because of the understanding of the

need for fend Importance of co-operation to improve their

edonomic conditions. Uecause in one season they were

getting very good returns in the form of increased prices

for their products and in the next season very poor returns

due to lower prices for the reasons beyond their control.

They were having no control and influence over the price

mechanism for agricultural commodities. Hence, they felt

the need for co-operative action to stabilise the prices

for their products. This was possible only through the

development of 'agro-processing* Industries in the district

under co-operative sector. Secondly, co-operative movement

was very successful in the adjoining Ahmednagar district.

About five co-operative sugar factories were started in 72 that period in that district and proved to be var^ success­ ful in their working. Thirdly, the State Government had annotinced the policy of giving required financial and other help for the development of cooperative ventures in the form of matching contribution, etc. Inspired by all these things, the agriculturists were brought together under co-operative fold for the first time. In this respect major credit goes to late Shri B.S.Hiray and late Principal S.G.

Puranik. Late Dr. D.R.Gadgil, an eminent economist of the country, rendered valuable guidance and services to these persons for the development of co-operative sector.

The first thing they did was the formation of the

Nasik District Central Co-operative Bank for the district in the year 19'i’+. It was necessary for the proper development of co-operative sector in the district because the provision of adequate finances was the pre-condition for the develop­ ment of co-operative ventures. Now this Bank has completed

17 years of its successful and ever expanding business operations and has rendered invaluable services for the development of co-operative movement in this region through its well spread branches at different places in the district.

Then came into existence the first co-operative sugar factory at Dabhadi (taluka Malegaon) in the year 1955. This area was known for sugar-cane cultivation after the expansion of the irrigation facilities. In the development of this 73

G l m a Sahakarl Sakhar Karkhana, Ltd., Dabhadi also the

encouragement and lead was given by late Shri B.S.Hlray.

This sugar factory was established with an initial in­ vestment of R s . 20 lakhs for the benefit of sugar-cane

cultivators from Malegaon, Oaglan, Kalwan and Chandor

talukas. Inspired by the response that was received in

the development of this first cooperative sugar factory and

the favourable conditions prevailing in Niphad taluka for

the development of sugar factory, another cooperative sugar

factory, namely, the Niphad Sahakari Sakhar Karkhana Ltd. was established in I961 at Pimpalas (Taluka Niphad).

Both these sugar factories have proved to be very

successful in their operations and have encouraged agricul­

turists to undertake cultivation of sugar cane on a very

large-scale and to improve their lot. The total area under

sugar-cane cultivation in I950-5I was hsurdly 97 acres. But

it increased to li»96 hectares in I96U-65 and to 3558 hectares

in the year 1968-69 in Niphad taluka alone. The area under sugar cane cultivation has increased by 50 percent during

the last five years in Baglan. The agriculturists from

Kalwan, Dindori, Chandor, Sinnar, and Nasik talukas have

also started sugar-cane cultivation during the last years

That is why four more co-operative sugar factories are pro­

posed to be developed in the district. These are already registered with the Government and the collection of share

capital has been started. IK

The Naslk Merchants' Co-operative Bank was started at Naslk In the year 1959 • Since then about l6 such co­ operative banks have come up in the district enabling trading activities on a very large-scale. The Naslk

Merchants' Co-operative Bank has opened one branch in the

Industrial Estate to cater to the needs of the Industrialists

The present position of the co-operative sector in the district can be seen and studied from the following tablet

Table Number of Dlfiferent Types of Co-operative Societies working in the district in 1969-70

Type No. of societies

1 . Agricultural Credit Societies 99k

2 . Non-agricultural Credit Societies Ilk

3. Agricultural Non-credit Societies 2kk k. Non-Agricultural Non-Credit Societies k6>i

/ Total 1817

Sourcet Statistical Abstract of Naslk District, I969-70, p »90

Other co-operative agro-processing factories were also started during this period. Two ginning and pressing factories at Malegaon Mid Kalwan, one co-operative rice mill at Harsul in I96I-62 and one gur and khandsari manufacturing society in Baglan taluka in 1962. In brief, the period after Independence saw the development of two co-operative sugar factories, one large-scale government press, some 75 agro-processing units and some small-scale 'modern* factories at dlfrerent important centres of the district.

In the year 1956-57 the total number of notified factories registered under the Factories Act of 19U8 was only lUl with about ll^OOO workers. This number rose upto

181 units employing I7>900 workers in the year I960-6I.

Hardly Zio of the notified factories of the whole State were located in the district employing 1.8 percent of the total factory workers employed in the State in I960-6I. This position shows that if traditional industries like bidi factories) gur factories etc. are excluded, the district was industrially backward having hardly J-h large-scale units £ind providing factory employment to about 1 per cent of the total population and 10.8^ of the total working population according to I96I census. That time, about 83 percent of the population in the district was entirely dependent upon agriculture as their means of livelihood.

III. 1962 Onwards .... Upto March 1971

The real development of Industries in the district can be said to have begun only after I962 when the Government of Maharashtra declared the policy of dispersal of indus­

tries and development of industrial areas in the State for

the said purpose. The industrial saturation had taken place in the Bombay-Thana and Poona-Chinchwad complex.

Therefore, the Government of Maharashtra decided to bring about the dispersal of Industries in the backward regions 76 of the State. For this purpose the State Government declared the policy of dispersal of Industries and dvclded to develop Industrial Areas In the State. To attract new

Industrial units In these backward regions, the Government announced many incentives and concessions for shifting or starting new units outside those heavily concentrated areas.

Only In 1962 the announcement for the development of one

Industrial Area at Naslk was made and efforts In that direction were started by the Government. Naslk being nearer to Bombay and well connected by Rall-Road with all the parts of the country got the advantage of this policy. I The Maharashtra Industrial Development Corporation made a beginning in this direction by first developing a large Industrial Area near Naslk on the Naslk-Trimbak Road in the village limits of Satpur. The Government land and other privately owned land was acquired (1586 acres in area) and handed over to the Corporation for the development purpose. The Corporation then prepared a broad layout of the area and undertook engineering operations such as constmctlon of roads, provision of water supply, develop­ ment of plots, supply of electricity through the Maharashtra

State Electricity Board, etc. The development was planned in three phases. Out of the total area of I586 acres, the

Corporation allotted 21+7 acres of land to the Naslk Indus­ trial Cooperative Estate, Ltd. for the development of small-scale industries. The remaining plots were allotted 77

to madlutn and large-scale Industries as per their require­

ments. The Corporation has developed about 320 plots at

the end of March 1971 &nd almost all plots were allotted by the end of June 1971*

The next impetus was given by the State Industrial

and Investment Corporation of Maharashtra (SICOM) by creat­

ing an agency to impress upon entrepreneurs the advantages

of moving into and locating their units in Areas at Nasik

and Nagpur. As a financial Institution, SICOM has played

an impressive role in attracting more than 175 new units

in the Nasik area. The SICOM has served as a catalyst to

draw an investment of about Rs. 100 crores to this under­

developed part of Maharashtra. Industries in this Area

are eligible for attractive package scheme Incentives such

as interest free loans to recoupe sales-tax paid, contribu­

tion towards cost of feasibility studies, relief from the

incidence of electricity tariff, octroi duty, water royal­

ties, etc. No wonder with such facilities a wide spectrum

of industries is springing up ranging in production activity

from the manufacture of hardware goods, fabrications, and buckets, washing soap, cement pipes, electrical instruments

and accessories, tool holders, hand tools, iron castings,

inibber products, ceramic products, diesel engine spare

parts, automobile parts to dehydrated onions, magnetic

tape, wire cloth for paper industry, machine knives,

tractors, cutting tools, spectacle hinges, plastic foot-wear, 78

carbide tips, tyres, fuel Injection pumps, etc. Diversi­

fication of Industries has become the Important charac"

terlstlc of the Area and th« Estate. The Industries

Department and the Maharashtra State Financial Corporation

have also contributed their mit© in this development.

Industrial Training Institute

The Industrial Training Institute, Nasik, was first

started in the year I960-6I in the city and then was shifted

to the Industrial Area in 1963* It has all modem facilities for over 9kO students studying about 26 different trades of

one year's and two years’ duration such as fitter, welder, draughtsmanship, sheet metal fabrication, moulding, turning, pattern making, etc. (for other details, please see

Chapter I ). t The development has also taken place in the provision

of banking facilities in the district. The State Bank of

India, the Bank of Maharashtra, the Dena Bank, the Bank of

Daroda, the Punjab National Bank and other nationalised banks have opened their branches at different centres and

taluka places. The Bank of Maharashtra has been declared

*Lead Bank' for the district after its nationalisation.

At present it has 11 branches only. The District Co-operative

Bank has branches. These banks have also contributed their mite, although inadequate, in the industrial development of

this district. 79

Institutional Efforts

The first Industrial Seminar at the district level was arranged by the Naslk district Development Board In

September I96I to study the position of Industries In the district, to decide plans for future development, to study the need for and prospects of Industrial Estates in the district and to encourage local entrepreneurs to undertake industrial ventures for the economic and industrial deve­ lopment of the region. Because of this Seminar many prospective entrepreneurs came together for three days to discuss various problems relating to industrial develop-* ment of the district. Secondly, many Government officers attended this Seminar and participated in the discussions.

Their guidance was available to many persons on this occasion. The main issue for the discussion was the

'importance of and prospects for Rural Industrial Estates'.

Along’ with this Semlnair, one Exhibition of Industrial goods and information was also arranged at Naslk. This Exhibi­ tion and Seminar were instrumental for setting up of Co­ operative Industrial Estate at Naslk. From this time the real tempo for the promotion of new industries in the district was created by this District Industrial Seminar.

The Intensive Industrialisation Campaign was under­ taken by the State Directorate of Industries in the district from the year 1962. This campaign has created investment possibilities in the district and helped expansion 80 of about k9 units. In this campaign cortain growth centres such as Sinnar, Satana, Lasalgaon, Ghoti, etc. were selected and were studied. This has resulted In invlgoratlon of the industrial climate in Nasik district.

As a result of this campaign quite a good number of new industrial units have been started in the small-scale sector since •

In 196ki with the changing needs of the district some new institutions were set up at the district level.

Special mention must be made of the Nasik District Chamber of Commerce and Industries and the Productivity Council.

Principal Dr. M.S.Gosavl, Shri D.S.Potnis, Shri S.M.Rathi and Shri G.V.Kulkami took the lead in setting up these organisations. It seenie that these organisations are not very active in their activities. This is high time for these organisations to serve the interests of the industrial community of the district.

Then a large Industrial Conference of the Small-scale

Industries was organised on the State level, by the Federa­ tion of Associations of Small Industries in India at Nasik in April 1968. The problems concerned with regional dis­ parities of industrialisation in Maharashtra were thoroughly discussed in this Conference. That Conference was very meaningful from the point of view of our district for many entrepreneurs in the district to accept the challenge of changing times. At the Conference, 22 5 applications for 81 machinery on hire-purchase basis, which were received during the Intensive Industrialisation Campaign, were sponsored and decided on the spot. The value of such machinery came to R s . 89 lakhs for this district. The

N.S.I. Corporation and the S.l.S.I. have also played their role in the industrial development of this district.

Educational Facilities

Development in educational facilities is always helpful to the smooth development of industries in any region.

Because industry needs educated personnel for administra­ tion and management, particularly development of manage­ ment and business education is highly essential.

Looking to the development of college education in the district onefeels very happy and proud. In the year 1951» there was only one Arts and Science College at Nasik imparting education to hardly 600 students. First indepen­ dent Commerce College was started at Nasik in 1957* But now in the year 1971 there are more than 20 colleges in the district imparting education in all faculties of Arts,

Commerce, Science, Law, Ayurvedic Medicines, etc. The number of students is more than 10,*S0 0 . This number of colleges will go upto 25 and of students to 15,000 within two years.

At Nasik post-graduate facilities in Commerce and

Management are available. One research institute is also there. The Maharashtra Bngineering Research Institute has 82 also staxted imparting education in Kligineerlng since

1970. No other district, except Bombay and Poona, can claim this type of educational development in the State.

Education and industry have been brought very close to each other in this part of the State which is essential for the development of both.

Present Position

During the last 8 years much momentum has been gathered by the industrial development in this Area. About 38 units were functioning in the Nasik Industrial Estate as on

31.3.1971 and other 38 in the Nasik Industrial Area. The total capital investment of these units was approximately

R s . 30 crores and average annual production of R s . 12 crores and total employment to 2850 persons. About 25 new units will go into production in the Area and Sstate by the end of this year and will provide employment to about 2800 persons.

Thus, the efforts of the btate Government, the Directo­ rate of Industries, the M.I.D.C., the SICON, the M.S.F.C. and the Nasik Industrial Co-operative Estate have been instxnmental for this development of industries at Nasik within a short span of 7-8 years. This has changed the whole picture of Nasik as it has come on the industrial map of our country as the fast developing industrial centre in

Maharashtra. Nasik has not only remained the holy place of pilgrimage but has become the important industrial town, 83 as many *modttrn temples' are coming up. In a period of about 5 years, there will be about 27 5-300 large, medium and small-scale industries In this Area providing enploy- ment for more than 20,000 persons only at Naslk. The total capital Investment will be more than R s . 12 5 crores.

Another notable feature of Industrial development of

Industries In the district Is that as much as 11 units In the large-scale sector have been started under the Forelgn-

Collaboratlon Agreements with different foreign collabora­ tors. These are financial, flnanclal-cum-technical and purely technical collaboration agreements. Three units have entered Into flnanclal-cum-technical collaboration agreements and others In purely technical collaboration agreements. This has brought very recent and developed techniques of production to this part of the State. This has its effect on the attitude of other Industrialists In the region as they have to change with the changing times.

Along with the development of Naslk, many new and

Important large, medium and small-scale Industries were located at different Important centres of the district.

Many Industries of diversified nature were started In other parts of the district. The Citric India, Ltd., producing citric acid, the Motwane (p) Ltd., manufacturing AVO Meters

4nd the Jayems Chemical Industry producing Metaplex for soap industry have been located at Naslk Road. One fruits canning factory has been located at Pimpalgaon Baswant in 8k the co-operative sector. There are two papain and pectin manufacturing: units and one Translstor-Radlos manufactuir- ing unit at Yeola. Two dairy units are located at Nandgaon.

One co-operative sugar factory and the H.A.L. Nasik divi­ sion at Ozar are some of the important industrial units that were started during this period at different centres.

The H.A.L. Factory alone employs about 6000 workers at Ozar.

The 'MIG* Factory is the only factory of its kind in our country, and the only 'huge* project of this region. Many agro-processing| cement processing, engineering, pharma­ ceutical, chemical, paper processing and printing units etc. were also developed during this period. According to

the Factory Inspector, Nasik, there were 331 factories registered under the Factories Act of I9U8, excluding bidi factories, as on 31*3*1971, as against 181 in I960-6I and 301 in I965-66. The percentage of working factories in the district to State has gone up to U .5 and of factory workers to U.l at the end of 1969~70.

No doubt, the industrial development is taking place very rapidly at Nasik and its surrounding area, but most

of the rural area in the district is still very backward.

There are no industries in Peint and Surgana talukas, very few units in Chandor, Oindorl, Kalwan, Sinnar £ind Igatpuri

talukas, that too agro-processing industries. The rapid development has taken place only in Nasik, Malegaon,

Baglan, Niphad and Nandgaon talukas, that too at some 85

Important centres In these talukas.

The tempo of Industrialisation In the district Is

rising steadily. It Is visible from the establishment of

a number of new Industries* The Initiative for this has

come both from the public and the private sector. But the development has taken place mainly on account of the package

of Incentives offered by the Government of Maharashtra to

the new Industrial units as well as those Involving sub­

stantial expansion.