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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

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  • 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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  • 107

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