Pune: Concerns Arise In Chakan MIDC As Some Companies Consider Migration

Chakan MIDC, 25th January 2024: Chakan in Pune district, often referred to as the Detroit of America, is grappling with various infrastructural issues, prompting concerns among companies within the industrial estate. Despite its global reputation as a hub for automobile companies and industries, some companies are contemplating migration due to increasing taxes, inadequate facilities, poor road conditions, and traffic congestion.

Entrepreneurs, company representatives, and workers in Chakan MIDC express discontent over the state government’s rising taxes, insufficient facilities, deteriorating main roads, and traffic challenges. The MIDC housing multinational companies like Bajaj Auto, Mahindra, Volkswagen, Mercedes Benz, and others, are witnessing a growing apprehension among companies.

Some companies in Chakan MIDC have already initiated migration attempts, citing challenges such as labour issues, escalating wages, and concerns about the overall business environment. The industrial estate, spanning across Nanekarwadi, Kharabwadi, Medankarwadi, Kuruli, Nighoje, Mahalunge, Shinde, Wasuli, Bhamboli, Varale, Ambethan, Savardari, and Khalumbre, has been a key area for industrial development.

Chakan MIDC experienced significant growth from 1993 onwards, particularly with the establishment of Bajaj Auto and the Bharat Forge project at Kuruli. Industrialization expanded into areas like Khalumbre, Savardari, Shinde, Vasuli, Bhamboli, Varale, and Ambethan. The MIDC houses approximately 4,000 big and small companies.

Entrepreneurs express concerns about the impact of increased Maharashtra State taxes and the end of subsidies that were once provided to companies in the region. While subsidies in other states like Karnataka, Telangana, Gujarat, and Chhattisgarh are attracting companies, the changing economic landscape is causing some businesses to consider relocation after a decade or more in the area.

Entrepreneurs, including figures like Yogesh Vake and Vijay Botre, urge the government to devise a comprehensive policy to address the challenges faced by companies in Chakan MIDC. They emphasize the need for infrastructure development, a strategic approach to taxes, and measures to attract new industries while preventing the migration of existing ones.

The region faces complexities related to labour issues and contracting, with some individuals, including leaders, activists, and gangsters, vying for contracts and engaging in conflicts with company officials. This scenario puts additional pressure on companies and contributes to the challenges faced by the industrial estate.

Critical concerns are raised about the poor condition of main roads, including the Pune-Nashik highway and Talegaon-Chakan-Shikrapur road. Traffic congestion on these routes adversely affects the timely arrival of workers to companies, disrupts transportation schedules, and poses safety risks. Entrepreneurs question the viability of maintaining businesses in the region without addressing these challenges.

Entrepreneurs stress the importance of planning a sustainable strategy to retain existing industries and attract new ones to Chakan MIDC. They advocate for a differentiated approach to taxes, infrastructure development, and policies that foster a conducive business environment. The call is for government intervention to ensure the long-term growth and sustainability of the industrial estate.