Nearly 20 small and medium-sized enterprises in Maharashtra’s Chakan industrial zone are planning to relocate to Khandala MIDC. The move, driven by severe traffic congestion and poor road conditions, puts Rs 1,000 crore in business and 4,000 jobs at risk. Industry players report that their concerns regarding infrastructure have gone unaddressed for over a year.
Small and medium-sized enterprises (SMEs) operating in the Chakan industrial hub of Maharashtra are actively exploring relocation to Khandala MIDC in the Satara district. This potential exodus of approximately 20 firms is largely driven by persistent infrastructure failures that have hindered day-to-day operations. Business owners cite severe traffic congestion, roads riddled with deep potholes, and a rising number of accidents as the primary reasons for seeking a new location.
The potential shift carries significant economic implications for the region. These companies collectively contribute roughly Rs 1,000 crore to the local economy. Beyond the direct financial impact, the relocation could disrupt the livelihoods of approximately 4,000 employees. For these businesses, the decision to leave is not impulsive; industry representatives state they have been raising these operational concerns with government officials for at least 14 months, but have seen little meaningful improvement.
Operational delays caused by poor road connectivity often result in increased logistics costs, disrupted supply chains, and safety hazards for the workforce. For manufacturing units operating on tight delivery schedules, these infrastructure deficits represent a direct risk to productivity and profitability. The search for an alternative hub like Khandala highlights the growing pressure on companies to find locations where they can maintain stable operations without the burden of constant logistical interruptions.
Local authorities have taken note of the rising discontent. MLA Babaji Kale has pledged to intervene, with plans to facilitate meetings between industry leaders and the Chief Minister to address the grievances and prevent the relocation. However, government representatives have downplayed the likelihood of a large-scale departure. Officials have noted that similar threats of relocation have been made in the past three years without manifesting into major shifts. According to government statements, infrastructure development efforts are currently underway, and decisions to improve the area were discussed in a recent meeting chaired by Deputy Chief Minister Sunetra Pawar.
For businesses and regional stakeholders, the core issue remains the gap between industrial requirements and infrastructure maintenance. While the government maintains that development is in progress, the industry’s willingness to consider relocating underscores a loss of patience regarding the business environment in the Chakan area. The key monitorable for the coming months will be whether the promised infrastructure improvements are implemented quickly enough to address the logistics and safety concerns that are pushing these companies to consider leaving.