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Automotive Hub in Peril: 50 Companies Exit Chakan, More Likely to Follow

The region is facing severe traffic jams, worsened by pothole-riddled roads, which has led to an increase in accidents and delays

Salil Urunkar

Pune: The Chakan Industrial Estate, one of Maharashtra's key automotive manufacturing hubs, is currently grappling with a serious infrastructure crisis.

Senior Congress leader Jairam Ramesh recently raised alarms, stating that around 50 companies have already shifted operations to other states, including Gujarat, Karnataka, and Andhra Pradesh, due to the deteriorating infrastructure in the area. These claims have been confirmed by the Federation of Chakan Industries.

Despite being home to world-class companies like Mercedes Benz, Volkswagen, Bridgestone, and Atlas Copco, Chakan is suffering from inadequate facilities, especially in terms of road infrastructure and traffic management.

The region is facing severe traffic jams, worsened by pothole-riddled roads, which has led to an increase in accidents and delays in the delivery of raw materials and finished products.

This situation has led to a significant drop in the productivity of local businesses.

"Employees are wasting two to three hours daily in traffic due to the congestion, which is seriously affecting the efficiency of operations," said Dilip Batwal, Secretary of the Federation of Chakan Industries, while speaking with mediapersons.

The Deputy Chief Minister, Ajit Pawar, held a high-level meeting in July to address the concerns of Chakan’s industrial community, but no substantial progress has been made since.

Meetings with local authorities have yet to yield any actionable solutions, and the companies continue to suffer from the same issues. This lack of initiative has driven many businesses to relocate to states offering better infrastructure.

Jairam Ramesh took to social media to highlight the gravity of the situation, stating, "Chakan is a major vehicle manufacturing hub, but its infrastructure is in a terrible state.

Many large companies have already exited the region due to persistent issues such as bad roads and traffic bottlenecks. This is not just impacting the local economy but also causing substantial job losses."

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