Adilabad: Cement units can bring industrial growth

Adilabad: Adilabad district is well known for cotton cultivation in the State but due to lack of investors no cotton-based textile industries have been established, except two spinning mills in the district.

Despite the availability of limestone deposits in large quantities in the district, no cement related industries have been developed and the lone Cement Corporation of India (CCI) plant which is now defunct, used to provide direct and indirect employment to about two thousand people.

The district economy is based on agriculture and its ancillary service sector. The district has 305 micro and small and medium enterprises (MSME)s established with an investment of Rs 30.50 crore and providing direct and indirect employment to about 1,220 people.

There are 28 agro-based, 10 plastic-based, 52 food-based units in the district. Under large and medium enterprises, the district has only two spinning mills, with an investment of Rs 73 crore and providing direct and indirect employment to about 1,078 people.

Agro Industries Chamber of Commerce president Raju Chintawar speaking to the Bizz Buzz said, the district has bountiful natural resources and good production of cotton and pulses.

The basic amenities like water, land and electricity for the establishment of industries here are also available in plenty. Large scale industries need huge investment for the establishment, and hence investors are not coming forward. There is no textile hub nor special economic zone so far.

The major challenge in attracting the investors is lack of connectivity to major towns or the proximity to big cities in order to transport their products. Currently there are two spinning mills in the district. One is Ashtalaxmi spinning mills and GMR Spintex spinning mills.

The spinning mills need Rs 70 to 80 core investment depending on the spintex machinery. The strengthened mill can generate employment for more than 1,000 people. And there is good opportunity for the setting up more spinning mills, thereby generating employment to large number of unemployed youths in the district.

Another big challenge for the industrialists is the sustainability. That is they need to run the mills irrespective of the raw material availability. In case the production of the raw material falls, the industry management will have to run the unit till end of the year and pay salaries to its employees. The district gets good yield of red gram after cotton. So, there is good scope for setting up red gram processing units in the district. There is an opportunity to set up units for processing other pulses too. The district is known for its forest based wood furniture units besides rubber processing units. Three years ago, the government gave green signal for opening of a private cement factory in the district in view of the massive lime stone deposits.

The government had issued orders for mining and set a deadline of three years to set up the industry. However, due to several factors not in government's control, the cement factory could not be established. But, if the cement factory is established, as many as 2,000 people will get both direct and indirect employment. Though some private parties are interested to set up cement factory, locals allege that the concerned department officials are not paying attention in this regard.

Once a cement factory starts working, it will provide employment. Besides, several other income sources will develop. It will give a good fillip for the business sector. The government will get an income in the form of royalty from the cement factory owner.

The State government had allotted 1,572.89 acres of land on lease at Yapalguda and Ramai villages under Adilabad mandal. Of this land, an extent of 747 acres was kept aside as it comes under Yapalguda agency area and 783 acres was identified for the construction of the factory near Rami village.

A total of 664 acres was for mining and 118 acres was for the construction of plant. The government will have to shed huge amount in compensation to the owners in the agency area.

Despite full of natural resources, the region remains backward, as there is no source of employment. Locals are forced to migrate to cities in search of livelihood. The State government should focus on attracting cotton spinning mills, textiles industries, cement units and agri processing units. If that happens, locals will have plenty of jobs at their disposal.