Maharashtra Loses Over 36,000 Industrial Units
More than 36,211 private companies shut down in Maharashtra over the last five yearsaccording to data provided by the Ministry of Corporate Affairs.
The figures have raised concerns about the state’s ability to retain existing industries even as the government continues to promote Maharashtra as a major destination for new investments.
The data was shared in response to a question by Shiv Sena (UBT) MP Rajabhau Waje, who questioned whether the investment MoUs announced by the state government are actually translating into new industrial establishments.
Pune Records 6,433 Closures
Pune recorded 6,433 industrial unit closures during the five-year period.
The figure is particularly significant because Pune is one of Maharashtra’s most important manufacturing and industrial centres, with major clusters across Pimpri-Chinchwad, Chakan, Talegaon and other areas.
Mumbai city recorded the highest number of closures at 12,009while 4,704 units shut down in Thane.
The concentration of closures in these major industrial and commercial centres has raised questions about the challenges businesses are facing in the state.
Industries Moving To Other States
Industry representatives say not every closure necessarily represents a business completely shutting down.
Some companies have moved their operations from Pune to other industrial locations, including Chakanwhile others have reportedly shifted to states such as Gujarat and Uttar Pradesh, where they found incentives that were not available in Maharashtra.
This has created concerns that Maharashtra could lose existing industrial activity even while attracting announcements of fresh investments.
Poor Infrastructure Adds To Problems
Industry bodies have pointed to infrastructure problems as one of the reasons behind the difficulties faced by businesses.
In Pimpri-Chinchwad, industrialists have complained about inadequate roads, street lighting, drainage and industrial waste collection.
Industry representatives say companies pay substantial taxes but do not always receive the level of civic infrastructure required to operate efficiently.
In Chakan, poor road conditions have also emerged as a major concern for industrial units.
COVID Impact And Financial Problems
Not all closures have been attributed to infrastructure issues.
Industry representatives said some businesses were forced to shut down after suffering financial difficulties during the Covid-19 pandemic.
Problems related to working capital and the inability to secure bank refinancing also contributed to the closure of some units.
This suggests that the overall number includes businesses affected by a combination of economic, financial and operational challenges.
Closed Industrial Land Remains Unused
Another major concern is what happens to the land and industrial properties left behind after companies shut down.
According to industry representatives, land belonging to closed companies can remain unused for years because of pending loans, legal disputes and other agreements.
The MP has urged the government to resolve these issues quickly and make such land available to new businesses.
Reusing existing industrial land could potentially allow new companies to establish operations without requiring large amounts of additional land acquisition.
Government Asked To Focus On Existing Industries
The latest figures have prompted calls for the Maharashtra government to focus not only on attracting new investments but also on retaining existing businesses.
The government has announced several investment MoUs worth thousands of crores, but questions remain over how many of these announcements eventually result in operational factories and employment.
Industry representatives have also called for greater incentives and location-based benefits to attract genuine industries to rural and economically backward districts.
Maharashtra Faces An Industrial Retention Challenge
The closure of more than 36,000 companies does not by itself establish that all these businesses permanently ceased economic activity, as the corporate data also covers companies that were liquidated, dissolved or struck off the register.
However, the scale of the numbers highlights the need to examine why businesses are disappearing, relocating or becoming inactive.
For Maharashtra, the challenge is increasingly twofold: attracting new investment while ensuring that existing industrial clusters remain competitive, financially viable and capable of supporting employment.
Summary
More than 36,211 private companies in Maharashtra were liquidated, dissolved or struck off over the last five years, with Pune accounting for 6,433 closures, Mumbai 12,009 and Thane 4,704. Industry representatives cited poor infrastructure, financial difficulties, lack of working capital and relocation to states offering better incentives among the factors affecting businesses. The government has been urged to retain existing industries and make land from closed units available for new ventures.