Around 20 small and medium-sized industries in Chakan MIDC are contemplating a move to Khandala MIDC in Satara, citing worsening roads, heavy traffic, and safety concerns, risking Rs 1,000 crore of trade and affecting 4,000 jobs amid ongoing infrastructure upgrades and political debates.
Around 20 small and medium-sized industries in Chakan MIDC in Maharashtra are weighing a move to Khandala MIDC in Satara district after years of worsening roads, heavy traffic and repeated accidents have made operations increasingly difficult, according to India Today. The businesses say the proposed shift could affect about 4,000 workers and put roughly Rs 1,000 crore of trade at risk.
Chakan has grown into one of Maharashtra’s most important industrial corridors, with major carmakers including Mercedes-Benz, Volkswagen, Skoda and Hyundai operating in and around the area. But industry leaders say the infrastructure has not kept pace with that growth. Some companies have already formed an association and begun talks over land and facilities at Khandala, with owners saying they first spent months trying to find a solution before turning to relocation.
One of the affected owners, Dhananjay Shedbale of Disha Exports, told India Today that the situation had become unmanageable after nearly two decades of working in the area, citing broken roads and waste disposal problems. Shantanu Kulkarni, who heads a small-scale industries association and owns Matrix Pulling, said the decision came after seven to eight months of discussion, adding that MSMEs lack the cushion that larger firms have when transport links fail.
The state has pushed back against the idea of a mass industrial exodus. A government representative said similar claims had circulated for years and insisted that no large-scale departure had taken place. Maharashtra Industrial Development Corporation has said road repairs are under way, while The Times of India reported that it has also launched Rs 368 crore worth of road works across Chakan’s five phases, including six-lane concrete stretches aimed at easing freight movement. The dispute has now become political as well, with local MLA Babaji Kale acknowledging government failure in the area and pledging to raise the matter with the chief minister.
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