Modern wave of Industrialization in Marathwada began with the introduction of cotton as a cash crop in the 19th century and subsequent establishment of pressing and ginning mills. With the establishment of railways, it was possible to bring in modern machinery and add value to the raw material.
First industrial estate in Aurangabad was established near railway station decades ago and consisted of small enterprises. Real industrialisation of Aurangabad started with the establishment of Chikalthana & Waluj industrial areas in 1970s & 80s. With ample availability of water from newly constructed Jayakwadi dam, tax incentives and proactive and investment friendly local leadership, industries blossomed. Aurangabad became the fastest growing city in Asia in 1980s. The city however couldn’t keep up the pace lost out in a liberalised economy. As tax tax incentives dried up many units became nonviable and faced closure.
In this backdrop Aurangabad was fortunate to be included in Delhi Mumbai Industrial (DMIC) project in the beginning of this decade. With the establishment of Shendra – Bidkin Industrial Area and world class infrastructure in AURIC city it is hoped that many multinationals will prefer Aurangabad over other cities and states of India.
Factors of Production :
Aurangabad, though classified as an industrially backward district nevertheless has an established manufacturing base.
Thus providing the basic infrastructure needed to establish a manufacturing unit within its vicinity.
With AURIC industrial city, world class manufacturing and residential infrastructure will be made available to prospective investors at reasonable rates. Issues of Land, water supply, waste disposal, electricity etc being taken care off by DMIC /AURIC, ready-made manufacturing site with plug and play facility will be available. Mumbai being the financial capital of India, Capital (finance) is easily available nearby.
Issue of skilled Labour :
Abundance of cheap and skilled & semi skilled manpower in Aurangabad and surrounding region is an added bonus to a prospective investor. There are many technical institutes and Engineering colleges in Aurangabad and neighboring districts which can cater to the demands of the industry. However in the changed competitive environment upgrading skills and acquiring advanced technical know-how within the region remains a challenge. It is within this perspective the idea of having an IIT (Indian Institute of Technology) Mumbai Sub Centre at AURIC Aurangabad comes into play.
Government should consider setting up a sub-centre of Indian Institute of Technology (IIT) at AURIC, Aurangabad and developing it as an institution of Technical Excellence. This will help the overall development of the backward Marathwada region. On the lines of ICT Mumbai’s campus being established at Jalna, we can have an IIT Mumbai’s sub campus at Aurangabad, which can eventually outgrow to become a full-fledged IIT in itself in future.
AURIC Aurangabad aims to create 2.2 lacs direct jobs with total industrial output of 46.2 billion US dollars and Exports of 11.6 billion US dollars. To achieve the above mentioned figures and to cater to the needs of the multinational investors, pool of trained technical manpower is not only a necessity but also a prerequisite. A Skill development Institute, a Management institute along the lines of IIM – Indian Institute of Management (in Pvt sector if not possible in Public sector) along with an IIT for higher & technical education and research can help fulfil the needs of the industry for the times to come. With an Human Development Index (HDI) of 0.727, Aurangabad and especially AURIC is the right candidate to play host to the above mentioned centres of higher learning and skill development thus not only catering to the needs of the industry but also helping in Socio-Economic & educational development of Aurangabad.