83
CHAPTER IV
INDUSTRY IN AURANGABAD:
AN OVERVIEW
Growth of industries in Aurangabad city and district since 1980
On outline (output, employment, productivity, problems) cases of
closure of industries
84
Introduction :
The Aurangabad district forms 5.3% of the total area of the state.
Aurangabad city, with the present population of nearly 16 lakhs is one
of the fastest growing industrial, educational and trading business cities
in Asia. About 8,598 small and 779 large scale industrial units are
making appearance on the scene.
Aurangabad district includes nine Talukas. Chikalthana was the
first industrial centre in Aurangabad district (1973) then MIDC started
a new industrial estate in Walunj and Paithan in the year 1983 and
1979 respectively. Now Aurangabad has 4 industiral estates having
spread on 2608. 15 hectors and with 2019 developed plots. The
industrial estates are located at Chikathana, Walunj, Railway Station,
Paithan Road, Paithan MIDC, the last name is well known for famous
silk weaving industries. There is also a 5 star industrial MIDC area at
Shendra having some big industrial units including automobile
assembly. In Aurangabad district employment has been created over
the last 40 years in the MIDC industrial estates near Aurangabad city
and also in some joining talukas.
Geographical characteristics of Aurangabad district:-
it is bounded on the north by the district, of Jalgaon and Dhule
on the South by Beed district and a portion of Ahmednagar district, on
the East by Parbhani and Buldhana district and on the west by Nasik
district.
85
Population Characteristics :-
According to the 2001 census of the Aurangabad district the
total population is 29.21 lakhs. The population growth rate in the
Aurangabad district during the 1991 to 2001 decade was 31.93 percent.
Aurangabad district industrial journey:-
Marathwada region consists of eight district Aurangabad, Jalana,
Parbjhani, Nanded, Latur, Osmanabad, Beed, and Hingoli. Aurangabad
district is one of the fastest industrially growing districts in
Marathwada. Small and large units are centralized in Aurangabad
industry.
Maharashtra Industrial Development Corporation acquired land
in Chikalthana village in 1964-65 and established the first planned
MIDC Industrial Estate in Marathwada region. In 1967-68 for the
development industries and to solve their problems, a few industrialisst
who had working units in Aurangabad came together for starting new
industrial units in Aurangabad M.I.D.C. area. Aurangabad city in
particular now has infrastructure facilities like broad gauge, Airliner
Cargo Units. All these factors will be responsible for the further
industrial development at Aurangabad. The available inputs in
Marathwada region will also help further industrial development of the
region.
With so many large units coming up in the district thereby
generating scope for SSI, secondary and tertiary activities the district is
86
poised for a big leap in industrial development as infrastructural
facilities such as land, water, power, telecommunication etc. are
available at here. Walunj, Paithan, Soegaon and Vaijapur these are
important growth centres.
Walunj Mahanagar :-
CIDCO (City and Industrial Development Corporation) is a
company set up by the Maharashtra government in 1970 to develop
new town as a special planning authority under the Maharashtra
regional and town planning Act, 1956 in the State of Maharashtra.
30 years ago on Aurangabad Pune road (near Aurangabad) the
Maharashtra government designated CIDCO as a special planning
authority for the development of a new township, consisting of 10,200
hectares of land near the industrial Zone called Walunj new town
project. Aurangabad city is a main centre of industrial area. So
government of Maharashtra gave some concessions and promote to
grown up the industry in Aurangabad district after 1980. Government
of India divided A, B,C, D and D+ these five type of category. 30
industrial area divided into c to D+ category.
Aurangabad : Category
C :- 3 (Shendra, Chikalthana, Aurangabad)
D :- 1 (Walunj)
D+ :- 2 (Paithan, Jafrabad)
87
C to D+ in this category 2001 to 2016 in this 15 year without
Electricity charges government provided power. Large and medium
level industry has centralized in Aurangabad district. In whole
Marathwada 65.23 percent industry centralized only in Aurangabad
district, and 77 percent investment is invested in Aurangabad industry.
Fig. No. 4.1
In this chapter when I tried to collect statistical information
from various departments, one important problem I found that, all the
data is not available. Because our study period is limited to 1991 to
88
2005,I have used in this chapter all the available statistical data for this
period. But statistical data for 20 years ago is not available in various
offices. Officers given answered me that this is long and old period.
After 10 years we are dispose of all statistical data.
So in this situation, it was impossible for me to collect all the
statistical data for the research period (1991-2005), but at my level I
collect all statistical data and updated information. For my research I
have chosen Aurangabad district industry, but in this chapter I have
presented some statistical data for Aurangabad district and some for
Marathwada as well as for Maharashtra. Because Aurangabad district
is a regional centre, in the Deputy labour commission office there is
available Marathwada level data and this data for all districts of the
region mixed with each other. so in this chapter I HAVE given all
information but I have focusED on Aurangabad industry: statistical
data for labour: employment, closed factory units, job losses, workers
list, no of fatal accidents at workeplace, etc. All this information is for
Aurangabad district and local Talukas, not for Aurangabad city alone.
So, for example, we see in table 4.1 working population in
Aurangabad district.
89
Table No 4.1
Working population of Aurangabad District as per Industrial Sectors (2001) census
Sr.
No
Aurangabad
District
Primary sector Secondary sector Other sector Total population
Male Female Total Male Female Total Male Female Total Male Female total
1 Rural 319 282 601 30 05 35 41 05 45 391 291 682
Percentage (82%) (97%) (88%) (08%) (02%) (05%) (10%) (01%) (07%) (100%) (100%) (100%)
Urban 18 09 27 59 07 66 95 17 112 171 33 204
2 Percentage (10%) (28%) (13%) (34%) (02%) (32%) (55%) (51%) (56%) (100%) (100%) (100%)
Total 337 291 628 89 12 10 136 21 157 562 32 886
Percentage (60%) (90%) (71%) (16%) (04%) (11%) (24%) (06%) (18%) (100%) (100%) (100%)
Source:- Zilha Samajik Arthik Samalochan Aurangabad District (2003)
90
Table 4.1 highlights the working population which is involved in
various sectors, in primary , secondary and tertiary sectors as well as
rural and urban areas. In primary sector rural area male population is
319,000 (82%) female population is 282 (97%) and in urban area male
population is 18,000 (10%) and female 9,000(28%) at the same time in
secondary sector rural male population 30,000 (08%) and female 5,000
(02%) in urban area male 59,000 (34%) female 7000 (02%) and
tertiary sector as third sector rural area male 41,000 (10%) and female
4000 (01%) only. It means in primary sector. In primary sector in the
urban area female working population is 68 per cent of the male
working population. In the secondary sector the female working
population is only one-sixth as compared to the male working
population in rural areas and less than on-eighth in urban areas. In the
tertiary sector also male workers dominate by far. It refers that in rural
areas female population working in farms and business activities , but
their participation in industrial units is almost negligible.
Table No. 4.2
Received complaints from workers from Marathwada region
(2005-2009)
Year Received complaints Solved complaints
2005 18 14
2006 19 16
2007 32 27
2008 46 31
2009 27 25
Source:- Directorate of Industrial Safety and Health
Government of Maharashtra Mumbai
91
Table 4.2 shows, that workers are given various complaints to
managements. For example rest rooms, travels, change to unit or
another. In 2007 year 32 complaints received managements and 27
complaints are solved. It means this is a satisfactory to workers. In
table 80 percent complaints are solve managements. So we see table
decreased complaints.
Table No. 4.3
Legal proceeding labour related cases (2005-2009)
Year No of factories Admitted cases Fine
2005 58 101 1,56,000
2006 22 33 1,26,500
2007 86 99 3,95,000
2008 52 66 2,10,000
2009 59 61 15,000
Source:- Directorate of Industrial Safety and Health office
Aurangabad
Table No. 4.4
Closed factory units in Aurangabad district
(less than 100 workers) (1983 to 1994)
Sr. No
Name of company Quantity of
labour
Year of closing
1 Arvind detergent Chikhalthana 94 1991
2 Prakash forges Walunj 90 1994
3 Kailash technical company Aurangabad 85 1988
92
4 Tryded metal company chikhalthana 85 1985
5 Candy engineering works Chikhalthana 80 1985
6 Filkar textiles orinted Aurangabad 75 1992
7 Jai auto works technical company
Aurangabad
72 1988
8 Airsto forma Chikhalthana 70 1984
9 Godawari mill Paithan 60 1993
10 Royal metal Paithan company 55 1989
11 Rajmetal company Chikhalthana 50 1993
12 Govind silk Chikhalthana 50 1983
13 Devdayal mill Paithan 50 1991
14 Shantaram textiles Chikhalthana 50 1991
15 Trishul industries Chikhalthana 50 1993
16 Khushbuchand sagarmal industry
Chikhalthana
50 1989
17 Arito textiles company Paithan 50 1991
Total 1116
Source:- Deputy Labour Commissioner Office Aurangabad
Table 4.3 shows that, in labour court many cases are pending 10
to 15 years. After this long period labour court taken fine very shortly.
We see in table in 2005 cases were admitted 100 but court imposed
fine on company managements amounts to nearly 1.5 lakh.
Table 4.4 shows the information about factories in Aurangabad
district employing less then 100 workers each which closed down in
the period 1983 to 1994. factory unites closed down during from last
20 years. Maximum factories are closed because of labour and
93
managements disputes. It is also observed that nearly 120 factories are
closed in Aurangabad district 15 year. Where capacity is 20 or less
than 20 workers.
We conclude that, factories are closed down because
mismanagement, recession, competition in markets economical
condition, strives and disputes. These were the reasons for factory
closures in the period before the impact of globalization was felt. Even
in the year period 1983-85 factories were closed down, reasoning in
loss of job by workers.
Table No. 4.5 No of closed factory units, Name and list Aurangabad district and
local Talukas and above 100 workers job lose workers list (After 1985 to Dec 1998)
Sr. No.
Name of factory and address
Date of factory closing and closing reasons
No of factory workers at closing time
No of factory workers at starting time
1 Poonam Biscuts Pvt Ltd, Chikhalthana, Aurangabad
6-7-1990 105 167
2 Prakalp Pvt. Ltd Chikhalthana, Aurangabad
Dec 1992 200 250
3 GGT, KP Engineering works Chikhalthana, Aurangabad
29-5-1993 351 400
4 Zalani tools Ltd Chikhalthana, Aurangabad
28-3-1997 (Lock-outs)
638 700
5 Aurangabad District Polister Girini, Garkheda, Aurangabad
14-3-1996 (loss)
335 350
6 Marathwada Aloy Steel Company Ltd, Chikhalthana, Aurangabad
24-10-1990 (mismanagement)
190 210
94
7 Universal Luggage Manufacturing Company Ltd. Paithan District Aurangabad
19-5-1990 (Disputes)
600 650
8 Elora Steek Ltd, Chikhalthana, Aurangabad
7-11-1996 (Loss)
230 250
9 Jain Speaners Paithan District Aurangabad
15-4-1998 (Lock-outs)
855 1150
10 Karona Shoes Ltd Walunj , Aurangabad
23-3-1998 (Economical condition)
196 210
11 Fobers Gokak Ltd Walunj, Aurangabad
1-2-1999 (No demand for
production)
123 135
12 Aurangabad Paper mill Ltd, Paithan District Aurangabad
24-2-1998 (Economical condition)
148 250
13 Kanakdhara Steel Company, Paithan District Aurangabad
1995 (Mismanagement)
200 225
14 Patheja Foling and Auto Parts Manufacturing Ltd Walunj Aurangabad
Dec 1998 (Economical condition)
345 400
15 Raman Engineering Pvt Chikhalthana Aurangabad
1-6-1985 (Economical loss)
167 200
16 Super Engineering Company Walunj Aurangabad
1991 (Mismanagement)
117 130
Total 4800 5677
Source :- Deputy Labour Commissioner Office Aurangabad.
95
Table No. 4.6
No of registered factories and closed factory units in Aurangabad district (1991-2005)
Year No of registered factories
No of running factories
No of labour in starting factories
No of closed factory units
No of closed factory units percentage with
registered factories (%) 1991 570 513 36331 57 10 1992 579 524 38302 55 9.49 1993 598 540 38367 58 9.69 1994 624 554 40852 70 11.21 1995 634 572 45135 62 9.77 1996 680 629 47410 51 7.5 1997 708 650 42583 58 8.19 1998 747 650 44203 97 12.98 1999 704 685 48591 19 2.69 2000 757 695 48225 62 8.19 2001 743 736 36169 07 0.94 2002 771 591 38897 180 23.34 2003 808 539 30843 269 33.29 2004* 851 598 34712 274 32.19 2005* 899 605 42175 263 29.25
*These figures are estimated Source:- Deputy Labour Commissioner Office Aurangbad
96
Graph No. 4.6
0
100
200
300
400
500
600
700
800
900
No of registered factory units No of closed factory units
1991 1992 1993 1994 19951996 1997 1998 1999 20002001 2002 2003 2004 2005
Table 4.5shows the information about factories in Aurangabd
district employing greater than 100 workers which closed down in the
period to 1985 to 1998. Table shows the number of closed factory units
with their names and list in Aurangabad district and local Talukas but
in this table above 100 workers are lose their job due to closing down
factory. Management given various reasons for dismissing workers
situation and unemployed. Company managements cites strikes,
lockouts and company loss as are reasons for closing the factory.
97
Table 4.6 shows the, number of registered factories and closed
factory units in Aurangabad district. In Aurangabad every year
increased number of registered factories. But nearly 80 percent of the
registered factories are starting every year. In this table we see after
2002 an increased percentage of closed factories in Aurangabad
district. Capital, land ,water, labour these are important factors for
starting new industry. But in every area these all factors are not
present, so year to year increased number of factories are registered but
these all do not in to start operating. The labour commission also notes
that those workers who lost their jobs in this dispute are still
unemployed.
We conclude that, after 1983 the government has given
concessions for starting new projects. But the company owners take all
the benefits and after 10 to 15 years they give some reason and close
down the plants. After losing their job workers and their families are
facing economical, social problems. After 2001, the number of closed
units are increased in Aurangabad district. If we compare the period
1991 to 2000 and 2001 to 2005. we see a significant difference after
2000 every year there was increased number of closed factory units.
Recession, loss, mismanagement, labour disputes etc. these are the
reason of closing units as given by company managements.
98
Table No. 4. 7
Number of registered factory and number of workers closed
factory in Marathwada (2001 to 2007)
Year Registered industrial
units
Functional industrial
units
No of closed units
Total workers in closed units
2001 1494 1199 295 49,777 2002 1439 1724 295 51,634 2003 1967 1581 386 75,863 2004 2050 1860 190 78,027 2005 2099 1663 436 88,541 2006 2130 1532 598 83,276 2007 2144 1758 386 81,480
Total 5,08,606
Source:- Deputy Labour Commissioner Office Aurangabad
Table No. 4.8 Number of total factory in Marathwada and number of
job losing workers (Jan 2001 to Dec 2008)
Year No of total factories
Total labour
Job losing workers
2001 1494 1,35,112 10,325 2002 1939 1,51,769 9,675 2003 1967 1,43,179 17,377 2004 2050 1,59,107 6,650 2005 2099 1,67,311 21,146 2006 2130 1,72,737 27,388 2007 2144 1,74,720 16,443 2008 2233 1,76,230 12,178 Total 16,056 12,79,424 1,21,105
Source:- Directorate of Industrial safety and Health
office Aurangabad
Table 4.7 shows that no of registered factory and closed factory
units in Marathwada. In table every year increased no of closed factory
units in Marathwada. Out of total Marathwada 65 percent industry are
99
located in Aurangabad district. So every year increased closed unit in
Aurangabad. In 2006 maximum 598 industrial units are closed in
Marathwada and 83,276 workers are lose their job due to closing down
of factory.
Table 4.8 shows that, no of total factory in Maharashtra and due
to factory closing down how many workers are lose their job. Due to
uncertainty in other sector and unemployment every year increased
labour in industrial sector. In table every year increased job lose
workers. (only two times not increased job lose workers.) but on the
other hand in the table 4.12 shows that 1 lakh 21 thousand workers are
losing their job. In this two table we see significant different because
these two tables are collected from various office. So they given me
various information. But in this period those who are lose their job they
have joined on some company contract basis. So in Aurangabad district
in the year of 2008. 1 lakh 20 thousand workers on contract basis.
These are a government statistical data. In really many more work on
contract basis. So every year above 10 thousands workers are on
contract basis doing their job.
We conclude that, every year increased no of closed factory in
Marathwada. After 1 year service workers are dismissed from their job
and then they dong their job on contract basis. So workers have no
security in their job. In table 4. 7 shows that in the period of 2001 to
2007 in this period 5 lakh 8 thousands workers are jobless due to
closing of factory units
100
Table No. 4.9
Contract workers in Marathwada region (2005 to 2008)
Year Aurangabad Nanded Latur Marathwada
2005 91,740 1,13,055 15,793 2,20,588
2006 99,822 1,13,817 15,949* 2,29,588
2007* 1,10,713 1,16,412 11,000 2,38,125
2008* 1,22,540 1,19,509 9,923* 2,51,977
*These figures are estimated
Source:- Deputy Labour Commissioner Office Aurangabad.
Table 4.9 shows that, 2005 to 2008 this period contract workers
statistical data. Nearly 65 percent contract workers are doing their
work in Aurangabad district and remaining 35 percent contract workers
are Nanded and Latur district. In Marathwada region only 3 districts
workers are doing their work in contract act, and remaining 5 districts
are not available this act. In table every year increased contract
workers. but in Latur district contract workers are decreased.
Industrial growth in Aurangabad started after 1970 but it
accelerated after 1980. In this period in Aurangabad were established
some large industrial units, such as VIDEOCON, BAJAJ, SKODA
these are large industrial units. At a same time several tiny and medium
industries started in Aurangabad, so workers are migrant from own
village to Aurangabad industry, for the purpose of job. After
globalization period Foreign Direct Investment (FDI) came in India as
well as in Aurangabad district. Aurangabad city is a capital of
101
Marathwada. So large medium and tiny industries are all centralized in
Aurangabad.
After Globalization period, government has given special
concessions to company owners and company owner s have taken all
benefits from government. Company owners united and then they
worked out a strategy to earn more and more profit. They purchase
land under MIDC and availed of other concessions like electricity,
water, import- export tax benefits and started industries. But after 10 to
15 years, factories some parts are old and profit at low level, that time
they have given various reasons and closed the factory.
After closing factory workers have gone in court but in labour or
industrial court cases are pending 10 to 15 years. So at this stage
workers are collapsed and they search for new jobs. But in the last
some years factory workers are appointed on contract basis and given
low wages and every six months they are given break in their jobs.
After 2000-2001 year no of closed units are increased so in
Aurangabad district 2008 year. 1,22,540 workers are working on
contract basis. It means when increased no of closed units at this period
all the workers are joined on contract basis. Every year there is an
increase by 10 to 12 thousand in the number of workers doing their
work on contract basis. But this is a statistical data. Those companies
who are registered in Deputy Commissioner Office in Aurangabad. But
some tiny and medium units are not registered so there are no figures
for contract workers employed by them. In contract system workers
are doing their work for 10 to 12 hours per day on wages of 5000 to
102
6000 thousand rupees only. This condition is not good for future of
workers.
Aurangabad industry established in 1970 but in in the last 40
years industry has not built up a skilled labour force. Because every
year upgraded technology is brought into industry so at the same level
workers are also trained. But in industry field maximum workers are
uneducated and companies require skilled workers. so this is adverse
for the growth and upgradation of the work force.
In Aurangabad district new industries are located every year. So
they require skilled workers. but in industry skilled workers demand is
not fulfilled and training centers for new skilled workers are not
available in Aurangabad so this a limitation of industry in Aurangabad.
We conclude that, in Aurangabad district the number of contract
workers increased every year and is now well above 1,20,000 and this
is not good for workers’ future.
103
Finally, we give some figures regarding injuries and indiuustrial
accidents in Aurangabad factories.
Table No. 4.10 Non fatal and expired industrial workers in
Marathwada region (2005-2009)
Year Non fatal injuries Expired
2005 158 22
2006 185 13
2007 156 28
2008 141 23
2009 151 24
Source:- Directorate of Industrial Safety and Health
Table No. 4.11 Industrial injury to workers (Whole Maharashtra )
(2002-2009)
Year Fatal Non fatal Total
2002 10 215 225
2003 29 208 237
2004 17 193 210
2005 22 158 180
2006 20 195 215
2007 36 193 229
2008 23 141 164
2009 24 151 175
Source:- Directorate of Industrial Safety and Health
Government of Maharashtra Mumbai
104
Table 4.10 shows that, in Marathwada region non fatal injuries
and Expired industrial workers. In 2007 highest 28 workers are expired
in industry but this is documentary data. In really many workers are
expired in industry but company management do not given any
security for workers. In 2006 highest 185 non fatal injuries workers in
industry in Marathwada region. In this whole data nearly 65 percent
expired workers are in Aurangabad district.
Table 4.11 shows that, industrial injury to workers in whole
Maharashtra. In 2007 year 36 workers are fatal in various industrial
areas. In 2007 215 non fatal workers are injured at workplace. But
management do not provide compensation to the injured workers. Last
some years company management adjustments injured and expired
cases and after few years given any reason and remove from their job.
We conclude that, compared to whole Maharashtra, in
Marathwada region non fatal and expired workers cases are increased
in Marathwada. So that is dangerous for the future of workers.
Table No. 4.12
Nature of industrial accidents in Marathwada region (2005-2009)
Year No of factory units
Nature of accidents Total Fatal Other accident
2005 16 22 158 186 2006 11 13 188 201 2007 32 36 202 238 2008 18 23 116 157 2009 17 23 118 158
Source:- Directorate of Industrial Safety and Health Government of
Maharashtra Mumbai.
105
Table No. 4.13 Compensation paid to workers(2005-2009)
Year No of factory units
No of workers
Compensation (In Rs)
2005 12 20 29,17,618 2006 10 12 21,91,218 2007 29 36 30,63,427 2008 07 07 90,74,69 2009 10 10 17,64,128
]
Source:- Directorate of Industrial Safety and Health Government
of Maharashtra Mumbai
Table 4.12 shows that, nature of industrial accidents in
Marathwada region. In 2007 maximum 36 industrial workers are fatal
in Marathwada industry. At a same year 202 workers are face other
accidents in industry. But it is also observed that maximum companies
managements are do not provide injured worker provided
compensation list to government they are adjustment to each other.
Table 4.13 shows that , after industrial accidents workers are
expired and injured. But after expired factory managements provided
minimum compensation to workers. In table 2007 year 36 workers
fatal or injured in factory accidents but management provided only
30,63,427 lakhs to workers. It means each worker only paid 1 lakhs
compensation. In factory accidents workers are lose their hand and
legs. So in this minimum compensation how can they survive?
We conclude that, industrial workers are facing accidents in
company campus. After accidents workers are lose their legs or hands.
But at this stage management given 1 lakh or 5000 thousands, So how
can live their whole life in this minimum compensation.
106
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