Pune: Twenty small and medium scale industries are threatening to leave Chakan, one of India’s largest auto manufacturing hubs near Pune, citing infrastructure issues. According to industry representatives, they are thinking of moving businesses out because of bad roads, traffic congestion, and poor infrastructure with regards to electricity and water.
While some are contemplating moving to neighbouring Satara’s Khandala MIDC, others are thinking of moving out of Maharashtra altogether, Dileep Batwal, CEO of the Federation of Chakan Industries (FCI) told ThePrint.
“We have written to the government a few days back but there has been no official communication from them. Even though only 20 companies have come forward, but the condition is same for almost everyone,” Batwal said.
Industry representatives told the media that if these industries move out, it could cost Chakan MIDC Rs 1,000 crore and lead to the unemployment of around 4,000 people.
Highlighting these issues, the representatives have requested the government to have a single nodal agency that can focus on Chakan.
Currently, there are multiple agencies that work in the area like Maharashtra Industrial Development Corporation (MIDC), Pune Metropolitan Region Development Authority (PMRDA), Maharashtra State Road Development Corporation (MSRDC), National Highways Authority of India (NHAI) and at least 12 gram panchayats in the vicinity.
“Every time when this topic comes up, a band-aid solution is applied. But there are no concrete solutions offered,” Batwal said.
Taking note of the issue, Chief Minister Devendra Fadnavis told the media that the issues in Chakan can be solved once a township is developed there.
Speaking to reporters in Pune, he said Wednesday, “The Chakan issue is a very genuine one. In that context, a meeting has been held. After the monsoon gets over, we will undertake the work of upgrading all the infrastructure there. Unless we convert these MIDC areas into townships, we cannot upgrade their infrastructure or maintain it properly.”
Chakan is one of the largest auto hubs in the country with many auto ancillary companies present here including auto giants Mercedes-Benz, Mahindra & Mahindra, Volkswagen, Skoda, among others. According to Batwal, the auto hub employs around 15 lakh people.
Also Read: From violent protests to majority consent, how opposition to Pune’s Purandar airport thawed
Problems in Chakan
According to industry representatives, the condition of roads impacts operations, especially during the monsoon.
“Because of this, the raw material getting transported is stuck for hours. It takes around two hours to cover five km sometimes. This disturbs schedules. The pothole-riddled roads have even caused accidents,” a representative of an auto-component maker told ThePrint.
This hampers productivity too, which is why more than 50 companies have already shifted base to Gujarat, Andhra Pradesh and Karnataka in the last few years, Batwal said.
Representatives of the federation also told the media that many school-going children are unable to reach schools on time, impacting their education.
Another owner of the auto ancillary company, amongst the 20 that are thinking of shifting base, told ThePrint that he set up his plant in Chakan about two years ago but the condition has become precarious. “Out of six days, I don’t even feel like going there for even four days. At least 20 companies have come forward but the problem is not only of 20 companies or their manpower or turnover. If you take a survey, 200 companies will tell you the same. It is the problem of the area,” he said, requesting anonymity.
An employee of Brembo India, the Indian subsidiary of the Italian auto component maker, said, “If I am specifically talking about my company, my second and third shift workers come so late, sometimes even by an hour, that it impacts my productivity by 5-10 percent, which is a big number. We are here on rent. Now, because of these issues, we might also think of shifting to Tamil Nadu, where we have a plant. There is also an electricity problem.”
He said their organisation employs 1,700 employees and last month for 5-6 days, they did not have electricity at their plant, which reduced output to 50 percent of capacity.
Batwal added that power failure is a common occurrence as power fluctuations are frequent and no agency has been able to find a solution as yet.
Swapnil Mogrekar, CEO of a multinational company, said workers are unwilling to come to work as they have to commute daily for 2-3 hours. “Employee retention is a big problem and they are right on their part. My company has taken up an office in the city of Pune and shifted those who are not directly involved in production to the city office. We are finding our own solutions but that has a financial impact on us. If the government is not able to provide basic infrastructure then it is a major problem,” Mogrekar said.
The representatives of these companies are hence demanding the creation of a special cell to address their grievances.
(Edited by Archishman Ganguly)
Also Read: 17 years on, why Mumbai-Goa highway expansion project remains trapped between potholes & politics