Even as NCP (SP) chief Sharad Pawar expressed shock over the closure of more than 36,000 industrial units in Maharashtra and the migration of 20 units from Chakan, Chief Minister Devendra Fadnavis conceded there was a “serious problem” in Chakan industrial area. However, he refused to accept that 36,000 units had closed down in Maharashtra, pointing out that many of them were already defunct.
“Maharashtra has the highest number of companies. The state has the highest number of functional companies. Some people are trying to mislead by citing figures of non-functional companies,” Fadnavis said on Friday in response to Pawar’s criticism.
However, with regard to the Chakan situation, Fadnavis said, “The problem of Chakan is serious. We have taken the issue seriously. The situation in Chakan has arisen because there are too many agencies working there and they do not have one coordinator. And therefore we have decided to appoint the district collector to coordinate the functioning of all government agencies working in Chakan. The problems of Chakan area will soon be resolved,” he said.
In a social media post, Pawar Thursday said the Devendra Fadnavis-led state government should hold high-level meetings with entrepreneurs and establish a special single window system to resolve their issues on time.
“Responding to a question raised regarding the state’s industrial policy by our parliamentary colleague, MP Rajabhau Waje, during the monsoon session of Parliament, Union Minister of State for Corporate Affairs Harsh Malhotra informed Parliament that as many as 36,211 private companies in Maharashtra have shut down over the past five years. However, government records lack information on how many people lost their jobs after these companies closed and whether they received adequate compensation. This is deeply shocking,” Pawar said.
Pawar said the migration or closure of industries due to a lack of infrastructure in Chakan was certainly not a matter of pride for the state.
On Monday, Nashik MP Waje had claimed – citing the Ministry of Corporate Affairs reply – that as many as 6,433 industrial units have shut shop in Pune district in the last five years. In the same period, 12,009 industrial units have closed down in Mumbai city while 4,704 have downed shutters in Thane district. Collectively, Maharashtra has seen closure of over 36,211 industrial units in the last five years.
Waje said while the state government claims to have signed Memorandums of Understanding (MoUs) worth multi-crore rupees for investments in various places, it should pay attention to the current condition of existing industries in the state which were closing down in big numbers.
Citing the case of Chakan, Pawar said, “The decision by as many as 20 companies in the Chakan industrial area to relocate due to traffic congestion, pollution, water, electricity, and road issues is extremely serious. More than 2,000 workers are employed across these companies… To prevent these industries from migrating, to sustain employment opportunities, and to maintain the state’s industrial strength, the state government needs to address the issue immediately.”
Pawar said the government should develop infrastructure on a war footing in Chakan, Talegaon, and other industrial areas across the state.
In a tweet Friday morning, Fadnavis said there were certain definite problems in Chakan MIDC and that Industries Minister Uday Samant was instructed to look into the matter. “Our effort will be that not a single industry leaves from there. Maharashtra is inherently business-friendly, which is why foreign investments continuously flow into the state in higher amounts. We are at number 1 and will remain so continuously,” Fadnavis said.
Addressing concerns over industrial health in Maharashtra, Fadnavis said of the statistics being cited regarding closed companies, 76% are “defunct” — meaning they existed only on paper and were never operational in reality. He added that 12% of companies underwent mergers, and only 2% were dissolved. In 2019–20, the central government ran a special campaign to cancel the registration of 6 lakh “dormant” companies.
Fadnavis said, “In 2015–16, the number of active companies in India was 6,78,768, which has now risen to 21,17,747. This means active companies have increased more than threefold over the past 10 years.”
Deputy Chief Minister Sunetra Pawar also assured that the problems in Chakan MIDC would be resolved on a priority basis.
Sunetra Pawar said that issues related to roads, transport, and other infrastructural facilities in Chakan MIDC will be resolved priority.
“To find an immediate solution to these problems, a meeting will soon be held with Chakan entrepreneurs, senior MIDC officials, local administration, and the district administration,” she said.
Sunetra Pawar said that she held a detailed discussion with Dhananjay Shedbale, a representative of the Chakan Nagri Kriti Samiti and industrial associations, listened to entrepreneurs’ problems, and assured them of necessary action.
Fadnavis said, “In 2015–16, the number of active companies in India was 6,78,768, which has now risen to 21,17,747. This means active companies have increased more than threefold over the past 10 years.”
Shiv Sena (UBT) spokesperson Sanjay Raut said, “The Industry Ministry is solely responsible for the situation in Chakan as well in Maharashtra. The Ministry is involved in doing doubtful activities and has no concern whatsoever regarding the infrastructure in Chakan or the closure of 36,000 industries in Maharashtra.”
NCP (SP) MLA Rohit Pawar said, “Chakan industries are threatening to move out because of the State government has not cared to provide them adequate infrastructure. Every monsoon, they suffer from pothole nightmares. Even other amenities lack in Chakan. The State government is solely responsible for the plight of industries in Maharashtra.”