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Vidarbha’s Manufacturing Push Under Make in India 2.0

Vidarbha’s Manufacturing Push Under Make in India 2.0
Vidarbha’s Manufacturing Push Under Make in India 2.0

Vidarbha finds itself at the centre of India's ambitious manufacturing renaissance. As the country accelerates its Make in India 2.0 initiative, Vidarbha emerges as a critical testing ground for national manufacturing policies, with its textile mills, emerging steel complexes, and agro-processing units representing both the promise and challenges of industrial transformation.


The region's journey from agricultural distress to industrial opportunity reflects broader questions about whether government incentives can bridge the gap between policy ambition and ground reality.


This transformation carries implications not just for the 6.4 crore residents of Vidarbha, but for India's broader goal of becoming a $30 trillion economy by 2047.


Steel Sector Emerges as Vidarbha's Industrial Backbone


The transformation of Gadchiroli from a conflict-affected district to Maharashtra's emerging steel hub exemplifies the potential impact of targeted industrial policy under Make in India 2.0. Chief Minister Devendra Fadnavis recently laid the foundation stone for Vidarbha's first integrated steel plant, a 4.5 million tonne per annum facility being established by Lloyds Metals & Energy Limited at Konsari.


This project represents a fundamental shift in how the state approaches industrial planning in its traditionally underindustrialised eastern region.

The steel ecosystem developing around Gadchiroli benefits significantly from the Production Linked Incentive scheme for speciality steel, which offers incentives ranging from 3-4% based on investment and production targets. Under PLI Scheme 1.1, launched in January 2025, the government has allocated Rs 6,322 crore specifically for speciality steel production.


The scheme's second round has attracted 25 companies committing Rs 17,000 crore in investments, demonstrating substantial private sector interest in government-backed manufacturing initiatives.


JSW Group has announced plans for an even larger project in the region, a 25 million tonne per annum steel plant with an investment of Rs 1 lakh crore. This facility, if realised, would surpass SAIL's entire current capacity and position JSW as a global steel powerhouse. The Maharashtra Industrial Development Corporation has initiated land acquisition processes for 3,500 acres in Wadsa taluka to facilitate this mega project.


The quality of iron ore in Gadchiroli provides a natural advantage for steel production. According to industry assessments, the iron ore in Gadchiroli achieves realisation of over 64% compared to the 55% generally available elsewhere in the country. This higher grade reduces the requirement for coking coal by 30%, potentially decreasing India's dependence on coal imports for steel production.


However, the steel sector faces implementation challenges. Land acquisition remains complex due to the Panchayats (Extension to Scheduled Areas) Act provisions applicable in tribal areas. Environmental clearances for projects in forested regions require careful navigation of ecological regulations.

Infrastructure development in remote areas also demands substantial upfront investment before production begins.


Union Steel Minister H.D. Kumaraswamy has emphasised the strategic importance of domestic speciality steel production, noting that despite being the world's second-largest steel producer and consumer, India still imports certain high-grade varieties. The PLI scheme specifically targets this gap by incentivising companies registered in India and engaged in end-to-end steel production.


The slurry pipeline technology being implemented in Gadchiroli represents an innovation in sustainable industrial logistics. Maharashtra's first iron ore slurry pipeline, stretching 85 kilometres from Hedri to Konsari, can transport up to 10 million tonnes per annum while reducing carbon emissions by 55% compared to truck transport. This infrastructure model could influence similar projects across India's mining regions.


Employment generation from steel projects extends beyond direct manufacturing jobs. The integrated steel plant at Konsari is expected to generate both direct and indirect employment in a district that has historically struggled with limited formal sector opportunities. The transformation includes former Maoist-affected areas where mining operations now provide legitimate employment alternatives.


Regional steel industry development aligns with broader infrastructure projects in Vidarbha. The Multi-modal International Cargo Hub and Airport at Nagpur provides logistics connectivity that supports the steel export potential. MIHAN's cargo handling capacity of 870,000 tonnes annually offers steel producers access to international markets through efficient transportation networks.


The steel sector's growth trajectory depends significantly on continued policy support and market conditions. Global steel demand fluctuations can impact project viability, while domestic demand growth supports expansion plans.


Industry observers note that successful steel cluster development in Vidarbha could serve as a model for similar regions across India.

The combination of mineral resources, policy incentives, and infrastructure development creates conditions that other states seek to replicate in their industrial planning efforts.


Textile Industry Navigates Between Tradition and Technology


Vidarbha's textile sector represents both the region's industrial heritage and its technological aspirations. The region contributes nearly one-third of Maharashtra's cotton production, providing a natural foundation for textile manufacturing.


However, the sector faces the challenge of modernising traditional operations while competing in global markets increasingly focused on synthetic fibres and technical textiles.

The Production Linked Incentive scheme for textiles, operational from September 2021 to March 2030, specifically promotes manufacturing in man-made fibre apparel, fabrics, and technical textiles. With a budgetary outlay of Rs 10,683 crore, the scheme offers incentives for five years based on incremental turnover achievements.


The scheme requires minimum investments of Rs 100 crore for Part 1 participants and Rs 300 crore for Part 2, targeting companies capable of achieving scale and technological advancement.


Maharashtra's Integrated and Sustainable Textile Policy 2023-2028 sets ambitious targets for the state's textile sector. The policy aims to increase cotton processing capacity from 30% to 80% over five years while attracting Rs 25,000 crore in investment and generating 5 lakh jobs. Vidarbha, designated as Zone 1 in the policy framework, receives specific focus for development given its cotton production advantages.


Union Minister Nitin Gadkari has emphasised Amravati's potential as a regional textile hub, advocating for technology integration in textile printing and production to connect rural artisans with national and global markets. The minister announced plans to introduce electric looms and mentioned the establishment of a non-profit textile firm in Dhapewada employing over 1,500 women, demonstrating how textile modernisation can create employment opportunities in rural areas.


The textile park at Butibori, established by the Maharashtra Industrial Development Corporation, spans 100 hectares and aims to provide common infrastructure facilities for small and medium textile companies.

This cluster approach offers shared resources for water, power, and land access, reducing individual company setup costs while promoting collective growth.


Technical textiles represent a significant growth opportunity for Vidarbha's textile sector. The Maharashtra Technical Textile Mission, established under the 2023-2028 policy, promotes the development of six technical textile parks through private investment. These facilities target high-value applications in automotive, medical, and infrastructure sectors, moving beyond traditional apparel manufacturing.


The PLI scheme for textiles has demonstrated early impact, catalysing investments of Rs 7,343 crore and generating turnover of Rs 4,648 crore. Exports under the scheme have reached Rs 538 crore, indicating successful market penetration. However, these figures represent initial achievements, and sustained growth requires continued policy support and market development.


Cotton farmers in Vidarbha face ongoing challenges that affect textile sector input costs. Price volatility, dependence on rainfall for 90% of farmland, and competition from subsidised cotton in international markets create uncertainty in raw material supply. The minimum support price often fails to cover production costs, forcing farmers to sell to private traders at lower rates.


The textile sector's modernisation efforts include the adoption of zero liquid discharge systems and effluent treatment plants to meet environmental standards. The state government provides Common Effluent Treatment Plant facilities to investors establishing units in textile hubs, supporting sustainable manufacturing practices.


Skills development remains crucial for the textile sector's growth. The policy framework emphasises training programs to ensure the availability of skilled manpower and increase employability. This includes both technical skills for modern machinery operation and design capabilities for value-added products.


The MIHAN project's logistics infrastructure benefits textile exporters by providing efficient cargo handling and international connectivity. The facility's capacity to handle diverse cargo types supports textile shipments to global markets, reducing transportation costs and delivery times.


Market conditions present both opportunities and challenges for Vidarbha's textile sector. Growing demand for technical textiles in infrastructure and automotive applications creates new market segments.

However, competition from established textile centres in Tamil Nadu and Gujarat requires Vidarbha manufacturers to differentiate through quality, innovation, and cost efficiency.

Government incentives under various schemes support textile expansion, but effective utilisation requires coordination between central and state policies. The Maharashtra State Textiles Development Corporation oversees sector development, ensuring alignment between policy objectives and industry needs.


Agro-Processing Sector Seeks to Transform Rural Economies


The agro-processing sector in Vidarbha represents perhaps the most direct link between the region's agricultural foundation and industrial aspirations. With cotton, oranges, and soybeans as major crops, the region possesses raw material advantages that agro-processing investments aim to capitalise upon.


However, realising this potential requires addressing both agricultural production challenges and processing infrastructure gaps.


The Pradhan Mantri Kisan Sampada Yojana provides the primary policy framework for agro-processing development.

Maharashtra has received approval for 189 food processing projects under various component schemes, including 3 Mega Food Parks, 62 Cold Chain projects, 12 Agro Processing Clusters, and 39 Food Processing Units. The scheme offers capital subsidies of 35% for projects in general areas and 50% for projects in difficult areas, scheduled caste/tribe promoters, Farmer Producer Organisations, and Self Help Groups.


The Ministry of Food Processing Industries has identified 16 clusters in Vidarbha under the Cluster Development Programme, with five clusters receiving final approval from the Government of India. Maximum clusters focus on agro and food processing industries, followed by textiles, reflecting the region's agricultural resource base and processing potential.


Mother Dairy's Rs 500 crore manufacturing facility in Nagpur exemplifies successful agro-processing investment in the region. The company has invested Rs 42 crore in procurement infrastructure and Rs 30 crore for facility refurbishment, with targets to enhance milk collection to 10 lakh kg per day.


This project demonstrates how large-scale processing units can create value chains connecting farmers to markets.


The Pradhan Mantri Formalisation of Micro Food Processing Enterprises scheme specifically targets small-scale operations. Maharashtra has received allocation for 22,167 micro food processing enterprises with an outlay of Rs 921.53 crore.


The scheme provides credit-linked subsidies of 35% of eligible project costs with a maximum ceiling of Rs 10 lakh per unit, making it accessible for individual entrepreneurs and small groups.


Orange processing presents a significant opportunity given Vidarbha's position as a major citrus-producing region. However, the sector faces challenges in post-harvest handling, storage, and processing infrastructure. Cold storage facilities remain inadequate for the volumes produced, leading to substantial post-harvest losses during peak seasons.


Cotton processing beyond ginning requires substantial technology upgradation and investment. While Vidarbha produces significant cotton quantities, most value addition occurs in other states. The Integrated and Sustainable Textile Policy aims to increase in-state cotton processing from 30% to 80%, but this requires coordinated development of ginning, spinning, and weaving facilities.


The One District One Product approach under PMFME identifies specific products for focused development. Banana has been approved as the ODOP for Dhule and Jalgaon districts, while other districts await product identification based on agricultural production patterns and processing potential.


Food processing clusters face infrastructure challenges including reliable power supply, water availability, and transportation connectivity.


Many areas in Vidarbha still lack adequate roads, affecting raw material procurement and finished product distribution. The cluster approach aims to address these challenges through shared infrastructure development.


Farmer-Producer Organisations play a crucial role in connecting agricultural production with processing units. These organisations aggregate produce from small farmers, ensuring a consistent supply to processing facilities while providing farmers with better prices through collective bargaining. However, FPO development requires continued support for capacity building and market linkage.


The Project on Climate Resilient Agriculture, implemented across 2,054 villages in Vidarbha, aims to improve agricultural productivity and quality. This initiative supports agro-processing development by ensuring a consistent raw material supply and quality standards required for processing operations.


Technology adoption in agro-processing faces financial and knowledge barriers.

Many potential entrepreneurs lack awareness of available schemes and the technical knowledge required for modern processing operations. Extension services and training programs remain crucial for sector development.


Export potential for processed agricultural products requires meeting international quality standards and certification requirements. The MIHAN facility provides infrastructure for agricultural exports, but processors must invest in quality control systems and certification processes to access global markets.


The State of Maharashtra's Agribusiness and Rural Transformation project, implemented across 10,000 villages with World Bank assistance, specifically targets value chain development in post-harvest agriculture segments. This initiative aims to facilitate agribusiness investment and stimulate small and medium enterprises within agricultural value chains.


Market linkage remains a critical challenge for agro-processing units. While production capacity development receives policy support, ensuring market access requires coordination between processing units, traders, and retail networks. Digital platforms and direct marketing initiatives show promise but require scaling for broader impact.


National Manufacturing Mission Sets Ambitious Framework

National Manufacturing Mission Sets Ambitious Framework for Vidarbha
National Manufacturing Mission Sets Ambitious Framework

The National Manufacturing Mission, announced as part of Make in India 2.0, provides the overarching framework within which Vidarbha's industrial development occurs.


With targets of achieving $7.5 trillion in manufacturing GDP by 2047, representing 25% of the country's overall $30 trillion GDP goal, the mission emphasises coordinated policy implementation and infrastructure development across regions like Vidarbha.

The mission serves as an umbrella body coordinating policies, incentives, and actions across different ministries and sectors. For Vidarbha, this coordination proves crucial given the region's dependence on multiple central and state schemes for industrial development. The mission's approach of integrating various PLI schemes, infrastructure projects, and skill development initiatives provides a comprehensive framework for regional transformation.



Manufacturing sector contribution to GDP currently stands at approximately 13-14% in 2025, indicating the substantial growth required to meet 2047 targets. Regions like Vidarbha, with their combination of natural resources, agricultural base, and policy support, become critical for achieving these national objectives.


The mission's emphasis on technology advancement and global competitiveness requires regions to move beyond traditional manufacturing towards high-value production. For Vidarbha, this translates into opportunities in speciality steel, technical textiles, and value-added agro-processing rather than basic commodity production.


Employment generation targets under the mission require coordinated development across multiple sectors. The steel projects in Gadchiroli, textile modernisation in Amravati and Nagpur, and agro-processing cluster development collectively contribute to job creation goals. However, achieving substantial employment impact requires sustained investment and market development.


The mission's focus on self-reliance and reduced import dependence aligns with Vidarbha's resource advantages. Local iron ore for steel production, cotton for textiles, and agricultural produce for processing support domestic value chain development and reduce dependence on imports.


Infrastructure development receives priority under the mission, recognising that manufacturing competitiveness depends on logistics efficiency, power supply reliability, and connectivity. The MIHAN project exemplifies this infrastructure-first approach, providing connectivity that supports multiple manufacturing sectors.


Private sector participation in the mission requires transparent and efficient implementation of incentive schemes. The PLI schemes' performance in terms of actual investment realisation and production achievement provides indicators of policy effectiveness and industry confidence.

Regional balance in manufacturing development ensures that growth benefits extend beyond traditional industrial centres. Vidarbha's inclusion in national manufacturing plans reflects this commitment to geographically distributed industrial development.


The mission's success depends on coordination between central policies and state implementation capabilities. Maharashtra's industrial policies, infrastructure development, and administrative efficiency directly influence how national manufacturing objectives translate into regional outcomes.


Skill development initiatives under the mission require alignment with specific manufacturing needs in different regions. Vidarbha's requirements for steel production, textile technology, and food processing operations differ from other regions, necessitating customised training programs and capacity building efforts.


Environmental sustainability considerations within the mission framework influence project design and technology choices. The slurry pipeline technology in Gadchiroli, zero liquid discharge systems in textile units, and sustainable agricultural practices in agro-processing reflect this environmental focus.


International competitiveness goals under the mission require manufacturing units to achieve global quality standards and cost efficiency. Vidarbha's manufacturing units must compete not only domestically but also in export markets, requiring continued technology upgradation and productivity improvements.


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