Aurangabad: Once Neglected, Now The Heart Of Maharashtra’s Industrial Revolution Under Devendra Fadnavis' Leadership

Marathwada is a drought-prone and historically neglected region of Maharashtra. It faced long and serious development challenges due to scarce natural resources and limited infrastructure.

Covering around 64,818 square kilometers, nearly a third of the region lies within a rain shadow, receiving just 750mm of rainfall annually, making drought a persistent issue.

Economic and industrial development in Marathwada has also lagged significantly, with infrastructure lagging far behind other parts of the state.

The region comprises eight districts: Aurangabad, Beed, Hingoli, Jalna, Latur, Nanded, Osmanabad, and Parbhani.

The previous INC-NCP government faced criticism for neglecting Marathwada, investing far less in the region compared to Western Maharashtra, which left Marathwada with limited infrastructure and economic growth.

However, the Mahayuti government has taken significant steps to change this. It has made substantial efforts to revitalize the industrial potential of the region, addressing previous shortcomings.

A key figure in this initiative is Devendra Fadnavis, who played a pivotal role in establishing Aurangabad Industrial City (AURIC) as part of the Delhi Mumbai Industrial Corridor (DMIC) under National Industrial Corridor Development Programme.

This project aims to transform Marathwada into a hub for industrial development, offering numerous opportunities for economic growth and job creation.

However, the progress of AURIC faced significant delays during the tenure of the previous MVA government. The stalling of this project has hindered its ability to catalyze industrial growth in Marathwada, an area with immense untapped potential.

The Mahayuti government's renewed focus on AURIC reflects its commitment to harnessing the region's industrial capabilities and fostering a conducive environment for businesses.

Delhi-Mumbai Industrial Corridor

The Delhi Mumbai Industrial Corridor (DMIC) stands as India’s most ambitious infrastructure initiative with a goal of transforming India into a global manufacturing powerhouse.

This project, with an estimated budget of USD 100 billion, represents a bold leap in reshaping India’s industrial landscape, enhancing manufacturing capabilities, and establishing India as a prominent hub for international trade and manufacturing.

The DMIC’s first phase includes the creation of eight new cities spanning six states, with each city built to meet the demands of a high-tech industrial ecosystem.

The six states are Maharashtra, Delhi-NCR, Haryana, Rajasthan, Gujarat, and Uttar Pradesh—covers nearly 1,500 kilometers.

This vast industrial network leverages robust logistical support through the Dedicated Freight Corridor (DFC), a high-speed rail freight line that connects Delhi-NCR to Mumbai’s major ports, the Jawaharlal Nehru Port Trust (JNPT) and Mumbai Port Trust (MBPT).

This connectivity provides DMIC’s industrial zones with streamlined access to domestic and international markets, making it an ideal corridor for manufacturing, trade, and export-oriented businesses.

At the heart of DMIC’s vision is the Western Dedicated Freight Corridor (DFC), a high-speed, high-capacity freight network that will connect key industrial zones, streamlining the movement of goods, reducing logistical costs, and making manufacturing in India more competitive on a global scale.

Aurangabad Industrial City (AURIC): India's First Planned Industrial Smart City

One of the flagship projects within DMIC is the Aurangabad Industrial City (AURIC), a greenfield industrial smart city located on outskirts of Aurangabad sprawling across 10,000 acres (about 40 square kilometers).

Developed by the Aurangabad Industrial Township Limited (AITL)—a Special Purpose Vehicle (SPV) formed through collaboration between the DMIC Development Corporation (DMICDC) and Maharashtra Industrial Development Corporation (MIDC).

AURIC has secured an infrastructure investment package of Rs 7.9 billion, backed by the Government of India.

Set to become a major manufacturing hub, AURIC is projected to achieve an export output of nearly $11.6 billion. The project aims to generate over 300,000 jobs across various sectors, significantly boosting employment in the region.

Designed to support a resident population of around 500,000, AURIC is equipped with world-class social amenities, creating a fully integrated urban ecosystem tailored for both work and quality living.

Shendra-Bidkin Industrial Area (SBIA): Manufacturing Hub for High-Growth Industries

The Shendra-Bidkin Industrial Area (SBIA) has been conceptualized as a significant industrial cluster as part of AURIC, offering expansive land provisions and comprehensive infrastructure services tailored to high-growth industries.

The AURIC project is divided into two development phases:

Phase 1 – Shendra
Spanning 8.39 sq km, this area is located just 17 km from Aurangabad city.

Phase 2 – Bidkin
Covering 31.79 sq km, Bidkin represents the major phase of the AURIC project.

This total planned area of 40 square kilometers offers ample space for heavy industries and flexibility for future expansion.

The first development phase features ready-built trunk infrastructure including roads, power supply, utilities, and water treatment plants at the plot level, all designed to streamline setup for new businesses.

Connectivity and Accessibility: AURIC’s Strategic Advantage

AURIC’s connectivity is among its most notable features, positioning it as a prime destination for industry and business. In addition to being linked to India’s main highway and rail networks, AURIC is only a 10-minute drive from Aurangabad International Airport.

These connections facilitate the swift movement of goods and personnel, making AURIC an attractive choice for companies with global operations.

AURIC's strategic location near Mumbai, India’s top logistics hub, provides a unique advantage for industries seeking global market access.

The proximity to the Jawaharlal Nehru Port Trust (JNPT) facilitates seamless exports to South Asia, ASEAN, the Middle East, Africa, Europe, and the Americas. This connectivity enables companies within AURIC to significantly reducing costs and transit times.

Smart Technology at the Core of AURIC’s Vision

Central to AURIC’s development is its use of cutting-edge Information and Communication Technology (ICT), which underpins its identity as a smart city.

ICT integration will streamline operations, optimize resource use, and enable real-time monitoring for efficient city management. An online e-Governance system will digitize city services, providing a seamless, hassle-free experience for residents and businesses.

The e-Governance model is designed to reduce bureaucratic hurdles, making it easier for companies to start, operate, and scale within the city. This digital-first approach not only increases efficiency but also aligns with the larger goal of building a knowledge-driven ecosystem in AURIC.

By employing intelligent infrastructure that minimizes environmental impacts and maximizes resource efficiency, AURIC aims to set a new benchmark in urban planning and industrial development.

Sustainability as a Guiding Principle

AURIC’s sustainable design approach is evident in its commitment to environmentally friendly practices across infrastructure and operations. The city’s development will employ clean, reusable, and recycling methodologies, particularly in energy use, waste management, and water conservation.

This focus on sustainability is intended to support AURIC’s long-term growth while preserving natural resources and minimizing environmental impacts.

Green infrastructure, such as rainwater harvesting systems, energy-efficient buildings, and waste recycling facilities, form the foundation of AURIC’s eco-friendly framework.

Economic Growth and Job Creation

The strategic location, advanced infrastructure, and strong governance model make AURIC a powerful catalyst for economic growth in the Marathwada region.

It is projected that AURIC’s industrial and commercial activities will create thousands of jobs, fueling local employment and enhancing the economic landscape. Industries ranging from e-vehicles and heavy engineering to food processing, textiles, and pharmaceuticals are expected to invest in AURIC, boosting the region’s manufacturing sector.

Moreover, AURIC’s development aligns with the “Make in India” initiative, encouraging domestic manufacturing and reducing reliance on imports. By attracting foreign direct investment (FDI) and fostering local industry growth, AURIC will play a pivotal role in making India a global manufacturing and trade hub.

Key Industrial Sectors at AURIC

AURIC focuses on sectors that are integral to India’s economic growth and industrialization. With an emphasis on cutting-edge industries and sustainability, AURIC’s infrastructure supports sectors like automobiles, electronic system design, IT services, food processing, pharmaceuticals, biotechnology, and textiles.

Automotive and EV Components Hub: AURIC is positioned as a prime location for automobile manufacturing and electric vehicle (EV) component production. The city’s proximity to Maharashtra’s established automotive ecosystem allows for seamless integration with suppliers and manufacturers in the sector.

With ready-made permissions for specific industrial categories, including those classified under the orange category, setting up automotive units is both quick and efficient.

A dedicated logistics zone and multimodal connectivity provide industries with smooth access to suppliers and markets.

Electronics Manufacturing Ecosystem: AURIC also caters to electronic system design and manufacturing industries, supported by Maharashtra’s thriving electronics manufacturing ecosystem.

With large contiguous land parcels, the city provides ample space for original equipment manufacturers (OEMs), contract manufacturers, and component suppliers.

The city’s existing permissions streamline the setup process, while AURIC’s 24/7 power supply, multimodal connectivity, support efficient operations and ease of logistics.

Food Processing Industry: For food processing companies, AURIC offers a location rich in resources and infrastructure essential for this sector.

The city provides easy access to raw materials and has established water treatment plants, sewage treatment facilities, and common effluent treatment plants, meeting the stringent water quality and recycling requirements of the food processing industry.

Round-the-clock power availability and AURIC’s close proximity to major rail, road road networks create a logistical advantage for companies involved in food processing.

Pharmaceuticals and Biotechnology: The pharmaceutical and biotechnology sectors benefit from AURIC’s comprehensive infrastructure tailored to meet industry-specific needs.

In addition to potable water and wastewater recycling facilities, AURIC offers ready approvals, making it easier for biotech and pharma companies to establish operations.

The city’s robust logistics framework and access to international ports allow for streamlined export and import processes, essential for these highly regulated industries.

Textile Industry: AURIC provides an attractive environment for textile companies, with close access to Maharashtra’s established textile ecosystem.

Textile manufacturers benefit from essential infrastructure like water treatment plants and consistent power supply, which are critical for maintaining production efficiency.

AURIC’s focus on simplifying the business setup process through pre-existing permissions and easy access to resources positions the city as a promising destination for textile industry growth.

Major Investments in AURIC Position It as India's Next Manufacturing Hub

AURIC is swiftly emerging as a premire investment destination in India, attracting several prominent companies to establish operations in the region. The influx of capital and the establishment of new facilities are set to transform the industrial landscape and boost the local economy.

Toyota Kirloskar Motor is making a significant commitment with a greenfield manufacturing facility slated for Chhatrapati Sambhaji Nagar, backed by an investment of Rs 20,000 crore. This state-of-the-art factory will focus on the production of electric and hybrid vehicles, with an ambitious annual output target of 400,000 units.

The project is expected to generate around 16,000 jobs, comprising 8,000 direct and 8,000 indirect positions. The state government has earmarked approximately 850 acres of land in AURIC for this transformative initiative.

Ather Energy, a leading electric two-wheeler manufacturer, is constructing a new facility within AURIC dedicated to producing electric vehicles and battery packs. This plant is anticipated to create around 4,000 jobs, with an impressive production capacity of up to 1 million units annually, positioning Ather Energy as a key player in the green transportation sector.

Lubrizol Corporation, a global leader in specialty chemicals, is also making its mark in AURIC with a planned investment of ₹1,680 crore. The company has signed a memorandum of understanding to acquire 120 acres for a new plant that will cater to the region's growing transportation and industrial fluid markets. Once operational, this facility is expected to be Lubrizol’s second-largest manufacturing site globally and its largest in India.

The Hyosung Group, a South Korean spandex manufacturer, has secured 100 acres of land for its first ultra-mega project along the Delhi-Mumbai Industrial Corridor (DMIC). With an investment of Rs 3,000 crore, this facility is expected to create over 1,000 jobs, enhancing the local industrial capabilities.

Kohler, a renowned manufacturer of diesel engines, is investing Rs 370 crore to establish a unit in AURIC, projected to provide employment for around 400 individuals. This investment further solidifies AURIC’s reputation as a hub for diverse industrial operations.

In addition to these major investments, companies like Bajaj and Skoda India have also shown keen interest in exploring opportunities within AURIC.

This renewed focus on Marathwada’s industrialization is poised to end the region’s era of neglect, bringing with it job opportunities and economic growth under the banner of “Nivesh se Naukari” (employment generation through investment), and placing Marathwada on a path to long-awaited prosperity.