For balanced growth

Interview with Ashok Chavan, Minister for Industries and Mining. By Lyla Bavadam

THE historic city of Nanded is poised for a major upgradation. This will involve not only the transformation of the city and its surrounding areas but also a rejuvenation of the entire district. Nanded district has primarily been an agricultural economy, producing foodgrains and cash crops such as cotton and oilseeds. This in turn led to agro-based activities such as ginning, oil extraction and milling. While these activities brought a degree of prosperity to the district, the pressure of population on land meant, inevitably, the slowing down of economic growth in the region. The answer to the challenge of revitalising Nandeds economy lay in rapid industrial development. In an interview to Frontline, Ashok Chavan, Maharashtra Minister for Industries and Mining, explains how industrialisation will make Nanded the City of the Future.

What prompted the plan to revive Nanded?

The credit goes to our industrial policy. Maharashtra has entered the next phase of economic reform with emphasis on structural changes in addition to fiscal incentives for the promotion of industry and balanced regional growth, which aims at developing regions such as Nanded, which are otherwise backward.

What is the potential for industries in Nanded? Is any particular type of industry encouraged?

As an industrial destination, Nanded has many advantages. Its strategic location and the availability of water has made sectors such as health care, tourism, entertainment, industrial, pharmaceutical and agriculture and allied sectors the key drivers of Nandeds economic development. The citys location on the banks of the Godavari, its airstrip and good road connectivity enhance its potential for industrial development. The development of the educational sector is another important factor. More and more pharmaceutical and agro-based industries are being attracted to Nanded.

Are new growth patterns being encouraged?

From an economic perspective, Nanded is excellently positioned to develop an agro-processing zone and agri-export zone. With no shortages of either water or power, Nanded can be marketed as a destination for agro-based industrial development. Banana and citrus fruits are grown in the region: there can be opportunities for marketing the local produce; and branding, packaging and processing industries may be explored. The key strength is cotton. The possibility of a non-polluting manufacturing base or a textile park is being explored.

Growth patterns will depend on devising a strategy for agro-based industrial development carving out designated areas for a floriculture park, an AEZ, or agro-economic zone, for exports, and identifying support facilities such as banks, truck terminals and trading markets. Areas designated for small industries could be converted to mixed-use areas where other non-polluting industries could be set up.

Is the pharmaceutical industry getting any particular attention, since Nanded is so close to Hyderabad and its pharma industry?

Parsvnath SEZ Limited, a subsidiary of Parsvnath Developers, has developed a pharmaceutical SEZ [Special Economic Zone] in a joint venture with the Maharashtra Industrial Development Corporation over 370 acres in the Krushnoor industrial area. This SEZ will provide world-class infrastructure.

How do investors perceive Nanded?

More investors are now attracted to Nanded, yet it is not quite an investment destination. That will take time. Nanded has improved a lot. Because of the Gurta Gaddi celebrations, huge investments have been made in infrastructure. A sum of Rs.50 crore has been spent to improve the existing airport, and now an Airbus A380 can land there. Night landing facilities are also available.

Will growth provide local employment?

Certainly. The Parsvnath SEZ will attract global pharma majors. Tata Chemicals, along with Pune-based Praj industries, is setting up an ethanol plant at the Krushnoor MIDC.