Pune: Chakan, one of Maharashtra’s major automobile and manufacturing hubs, is facing a serious infrastructure crisis, with around 20 companies operating in the Chakan MIDC area now considering shifting their units to Khandala MIDC in Satara district, industry representatives said. Persistent traffic congestion, pothole-ridden roads, bottlenecks, inadequate parking and truck-terminal facilities, waterlogging, poor waste management and the absence of basic common amenities are increasingly affecting industrial operations.

The Free Press Journal covered Chakan’s traffic issues in its August 11 edition |
Representatives of the affected companies said they have been approaching the government, including Chief Minister Devendra Fadnavis, for the past two to three years, but several key issues remain unresolved. According to them, the affected companies collectively employ around 2,000 people, while continued disruption to industrial activity is causing financial losses estimated at 20 to 25% for some businesses.
Chakan and its surrounding industrial belt are home to nearly 3,000 companies and generate an estimated annual business of around ₹1 lakh crore, while providing employment to nearly 15 lakh people, according to industry representatives. They warned that continued neglect of infrastructure could undermine Chakan’s position as a major automobile and manufacturing destination.
One of the biggest concerns is the condition of roads and traffic movement. The Nashik Phata-Rajgurunagar corridor has remained a longstanding problem for industries, with representatives pointing out that multiple agencies, including PMRDA, the Pune district administration, Zilla Parishad, PWD and MIDC, are involved in the region. The lack of coordination between agencies has, they said, contributed to delays in resolving the infrastructure crisis.
Industrialists said raw materials frequently arrive late because vehicles remain stuck in traffic, while finished goods also face delays in reaching customers and OEMs. This directly affects production schedules and increases expenditure on fuel, vehicle maintenance, labour and logistics.
'Small industries cannot afford continuous delays'
Dileep Batwal, CEO of Chakan Industries Federation, said, “When it takes two hours to cover a distance of five kilometres, it is no longer merely a commuting problem; it becomes a problem of production and employment. Small industries cannot afford continuous delays in logistics. If infrastructure fails, investment eventually moves out. Businesses are also facing severe losses because employees and transport vehicles spend hours in traffic.”
Industrialist Dhanajay Shedbale said poor road conditions alone were contributing to losses of around 5 to 10%. Companies have to bear additional fuel costs, vehicle maintenance expenses and wages for workers even when production or transportation is delayed.
The problem has become more severe as Chakan MIDC has expanded through five phases and the area has become increasingly crowded. Heavy vehicles often occupy designated parking spaces, forcing truck drivers to park on roads when available parking areas are full. This further reduces road width and creates additional bottlenecks.
Confusion over administrative boundaries
Another industrialist said it was unfortunate that businesses had been forced to protest merely to demand basic amenities. He pointed out that confusion over administrative boundaries had also compounded the problem, with different areas falling under different authorities. Internal roads remain congested, while promises to resolve the traffic crisis within a year have yet to translate into a comprehensive solution.
“I started my company two years ago, and there are many businesses that have become frustrated with the situation. But around 20 companies have come together and shown the courage to highlight these issues because the situation can no longer be ignored,” another businessman said.
Waste management is another major concern. In areas falling under gram panchayat jurisdiction, inadequate waste collection has allegedly resulted in garbage being dumped along roadsides, creating an unhealthy environment for workers and residents. Industrialists have also raised concerns over electricity-related problems and the need for better coordination with MSEDCL.
Swapnil Mogarekar, chief operating officer of an Italian company, said basic infrastructure was essential for industrial growth. “Until basic amenities are fully provided, the dream of becoming the world’s third-largest economy will remain just a dream,” he said.
Prashant Tope, who runs a small business in the area, highlighted the impact of poor roads on employees, including women workers. He questioned the quality of road construction and pothole repairs, saying that despite crores of rupees being sanctioned for roads, even a single spell of rain exposes the poor quality of the work.
₹7,000 crore sanctioned around two years ago
Industry representatives also questioned the delay in the proposed Nashik Phata-Rajgurunagar road project, claiming that more than ₹7,000 crore was sanctioned around two years ago, but work has still not begun. They have urged CM Fadnavis to examine the reasons for the delay and ensure that a time-bound solution is implemented.
The companies have demanded pothole-free roads, improved connectivity, measures to tackle waterlogging and traffic bottlenecks, a dedicated truck terminal, a central common effluent treatment facility, common industrial amenities, green spaces and improved water supply.
They have also demanded urgent action at traffic choke points, removal of encroachments, proper parking facilities for heavy vehicles, streetlights and traffic wardens at critical junctions, and better coordination among PMRDA, MIDC, the district administration, NHAI, PWD, Zilla Parishad, PCMC and other agencies.
Industrial representatives said medical emergencies were particularly worrying, as ambulances can remain trapped in traffic during the critical “golden hour”. School buses and other passenger vehicles are also reportedly getting stuck for two to three hours, affecting students and families.
The industry body has called for a joint review mechanism involving all concerned authorities and regular public meetings to monitor progress. It has also sought immediate pothole repairs, a dedicated grievance-redressal mechanism and publicly announced timelines for roadwork.
With companies now considering relocation to Khandala MIDC, industrialists fear that failure to address the problems could result in further investment moving away from Chakan. For a region that has emerged as one of Maharashtra’s key automobile and manufacturing centres, they said, resolving the infrastructure crisis is no longer a long-term demand but an immediate economic necessity
