The study mentioned above further reveals that the number of factories and factory employment in Bhandara district decreased by 52 and 8,461, respectively in 1965 over that in 1956. The decrease in respect of both the number of factories and employment was more pronounced in the case of bidi manufacturing. The number of bidi factories decreased by 58, while employment by 8,506 in 1965 over that in 1956.

Although agricultural development has a crucial role in the process of economic development in the district as in the rest of the country, substantial improvement in the level of living and employment opportunities can be achieved only by diversification of the economic activity through rapid industrial development. Bhandara district does not furnish a happy picture as regards industrialisation as it ranks seventh in Nagpur Division and eighteenth in the State in order of placement in respect of workers per lakh of population employed in registered factories. There are only two important major industries, viz., rice milling, and bidi manufacturing, while manufacture of seedlac, shellac and ferro-manganese are the other major industries which deserve mention. The percentage of major industries to that 'of the total registered factories was about 83.33 in 1966, while the average daily employment in the major industries was about 89.00 per cent of that in total registered factories. These facts speak of the state of industrialisation in Bhandara district.

Bhandara district though industrially backward possesses valuable minerals and forest resources which would encourage industrial growth in the future. It is one of the most important mineral producing areas in Maharashtra, and is endowed with large deposits of manganese ore of both high and low grade. The manganese ore contents of the raw ore range from 20 per cent to 40 per cent. Investigations made at the National Metallurgical Laboratory, Jamshedpur have proved that even the low grade ores in Bhandara district are amenable to beneficiation. [A 600 tons per day capacity plant for beneficiation of low grade manganese ore by heavy media separation has been established at Dongri Buzruk in the district. A ferro manganese plant has also been established in the district.

For details of mineral deposits refer Chapters 1 and 5.] The iron ore deposits though not very useful in the manufacture of steel are an important natural gift to the district. The reserves up to a depth of about 100 feet are estimated at 6.2 million tons. Chromite is another important mineral the reserves of which are estimated to be about 4.8 lakh tons within a depth of 50 feet from the ground surface. The chromite contents of the ore range between 33.94 and 52.48 per cent. Besides, there are considerable reserves of kyanite, sillimanite, corrundum and soap-stone, the proper exploitation of which will encourage industrial development in the district.

The Geological Survey of India have carried out preliminary geological mapping and mineral investigations in the district, while further work is in progress. In order to carry out detailed prospecting and exploration, the work is planned to be undertaken in stages. This will have a definite impact on the economy of the district.

Proper exploitation of mineral and other resources has an important bearing on the economic development of the district in the future. In this connection the recommendations made by the Master Plan for Industrialisation of Bombay State are very important. As per the recommendation of the Ore Beneficiation Committee of the Government of India, the Master Plan suggested that a factory for beneficiation of low grade manganese ore should be established at Tumsar which answers practically all the requirements of the industry. Tumsar is a favourably situated broad gauge railhead, and is conveniently connected by railway as well as by roads with the manganese mines in the district. Electricity and water-supply which are so essential for this industry are abundant at Tumsar. Prior to the preparation of the Master Plan heavy media separation beneficiation plant was established at Dongri Bazruk in the private sector.

The Master Plan also suggested that the availability of kaynite in ample quantity would make it possible to establish a plant with annual production capacity of 3,000 tons each of hot face insulation and dense mullite, refractories, near about Bhandara railway station. The capital outlay on such a plant would amount to about Rs. 12 lakhs.

As referred earlier, Bhandara district is a rice bowl of Maharashtra which produces a large quantity of rice bran which goes waste at present. The authors of the Master Plan, therefore, suggested that a plant for the extraction of rice bran oil by the solvent process would be feasible, particularly near Bhandara or Tumsar. The bran oil is an edible oil which finds a ready market particularly because of the shortage of groundnut oil in the country. A solvent extraction plant would be more economic if it also undertakes extraction of tamarind seed oil, mohuwa oil and karanji oil.

The Master Plan also indicated that Bhandara district furnishes ample opportunities for the establishment of raw material based industries, such as, manufacture of strawboard, hardboard, fibre-board and chipboard which will provide employment opportunities to considerable number of persons. The newly started ordnance factory at Bhandara has opened good prospects for the establishment of a factory for the manufacture of sulphuric acid and other chemicals. " Proximity to Bhandara should be considered suitable for establishment of several chemical lines like nitrates, sulphates of copper and iron salts for preservation of wood, etc., owing to a number of favourable factors, viz., water-supply from river Wainganga, power, central location, rail road communications and proximity to Nagpur [Master Plan for Industrialisation of Bombay State.]."