Earlier, Maharashtra’s Chakan was a familiar name among car manufacturers. Many Indian and foreign brands have their manufacturing facilities set up in Chakan. A new report has come up suggesting that not one or two, but 20 companies have now decided to exit one of India’s biggest car manufacturing hubs. The reason is nothing but poor infrastructure.
As per recent reports, 20 small and medium-sized industries that had facilities in Maharashtra’s Chakan Industrial Development Corporation have actually started looking for other locations. The reason for these companies to leave is the poor condition of the roads, traffic congestion, and poor infrastructure.
Shantanu Kulkarni, president of the Small-Scale Industries Association and owner of Matrix Pulling, said, “Industries need an alternative system and proper infrastructure to operate. We are all MSMEs and do not have the same resources or setup as large companies. We face different problems every day. We discussed the issue for seven to eight months, but since the difficulties continued, we decided to explore shifting elsewhere. We have shortlisted four to five options and are now considering Khandala MIDC, where the infrastructure is already in place.”
Chakan, as mentioned above, is a hub for car manufacturers. Brands like Mahindra & Mahindra, Mercedes-Benz, Hyundai, Skoda, and Volkswagen have a presence in this area. However, at a recent conference, representatives of MSMEs, Indian and foreign companies expressed their dissatisfaction and said that the lack of basic infrastructure like roads, water, and power, which is a must for businesses to run efficiently, was the leading cause of why companies want to exit Chakan.
Chakan is not just a hub for major car manufacturers, but it is also a hub for auto-ancillary and parts suppliers. As per the data available online, there are around 750 auto-ancillary and parts suppliers present in this region, and they actually play a crucial role in the smooth operation of many major brands present in the region.
Due to the poor infrastructure in Chakan, the 20 companies have now decided to relocate to Khandala MIDC in Satara district. Most of the representatives have blamed the government for the poor condition of the roads and other issues. They claimed that the government had failed to address issues including waste management.
In any industrial estate, the condition of the roads plays a crucial role in efficiency. However, in Chakan, the roads are completely broken, and there are potholes on almost every stretch. This is often causing delays and traffic congestion. While there are companies working within the industrial area, there are more that are operating outside but closer to the same area. Because of the poor condition of the roads, these companies are unable to operate efficiently.
Responding to this announcement by the companies, government representatives said that reports about industries leaving Chakan have been circulating for the last three years, but no large-scale relocation or exodus has happened so far. The representative also told the media that Deputy Chief Minister Sunetra Pawar had held a meeting on this issue and that positive decisions were taken.