Archive · 23 Aug 2026
Chakan Auto Hub Faces Relocation Threat Over Infrastructure Gaps
Chakan is a large area near Pune where many vehicle companies and their suppliers operate.
Twenty companies complained that the roads, electricity, water supply and garbage collection were not good enough.
They warned that they might move their factories somewhere else.
The government admitted that Chakan has serious infrastructure problems.
It promised to repair potholes by August 31 and remove roadside encroachments within a month.
It also announced longer-term plans for better roads, waste collection, electricity and other facilities.
Some officials say the water supply is sufficient, but companies say they often receive water for only a short time.
The companies are waiting 10 months to see whether conditions improve.
If they do not, they may reconsider moving, and other companies could follow.
Twenty industrial units in Pune’s Chakan MIDC warned they could relocate after years of complaints about roads, water, power, waste and traffic.
The Maharashtra government set deadlines for pothole repairs, encroachment removal and broader infrastructure and waste-management improvements.
Officials announced plans for 100 private security personnel, new power substations, a truck terminal and a hospital.
Industrialists say poor amenities threaten production and deliveries, while officials cite coordination failures and planned upgrades.
The companies have postponed relocation and will assess progress against the government’s 10-month improvement timeline.
- Who
- Twenty industrial units in Chakan MIDC, the Maharashtra government, local officials and the Chakan Industrial Association.
- What
- The companies threatened to relocate because of long-standing infrastructure and basic-amenity problems, prompting the government to announce improvement measures and deadlines.
- When
- The threat followed more than 14 months of complaints; the government’s response included an August 31 pothole deadline, a one-month encroachment deadline and a 10-month broader improvement timeline.
- Where
- Chakan MIDC in Pune district, within the Pune-Chakan-Talegaon industrial belt of Maharashtra.
- Why
- Industrialists cited potholes, traffic congestion, waste, unreliable water and power supplies, encroachments and inadequate infrastructure as obstacles to operations and deliveries.
Industrialists and critics
Government and officials
Condition of infrastructure
Industrialists and critics
Industrialists and Opposition leaders say Chakan has been neglected, with damaged roads, severe traffic, roadside waste, encroachments and inadequate parking disrupting businesses and workers.
Government and officials
The government acknowledged a severe infrastructure gap but said improvements were being planned and blamed poor coordination among government agencies for delays.
Water and electricity
Industrialists and critics
Companies report receiving water for only about an hour, sometimes without notice, and say power cuts and an outdated electricity system increase costs and delay production.
Government and officials
An MIDC executive engineer said the area receives 30 MLD of water and that this is sufficient. Another official acknowledged that installed power capacity falls short of industrialists’ expectations and said new substations and transformers are planned.
Whether promises will work
Industrialists and critics
The Chakan Industrial Association is waiting 10 months but warns that companies may relocate if conditions do not improve; it points to continuing delays in promised improvements at Hinjewadi.
Government and officials
Chief Minister Devendra Fadnavis and other officials say immediate repairs and a longer-term plan to develop MIDC areas into industrial townships are underway.
- Industrial area
- Chakan MIDC covers about 4,000 hectares and was established in 1995.
- Major companies
- Units in the area include Bajaj Auto, Hyundai, Mercedes-Benz, Skoda, Mahindra and Volkswagen.
- Employment
- The article says Chakan’s units employ more than 10 lakh workers.
- Industrial demand
- The companies called for improvements to roads, water, electricity, waste collection, traffic management and other basic amenities.
- Government committee
- A 14-member committee was formed, headed by the Pune District Collector and co-chaired by the Pimpri-Chinchwad Police Commissioner.
- Immediate deadlines
- Potholes were to be addressed by August 31, while roadside encroachments were given a one-month removal deadline.
- Long-term projects
- Plans include a 100-tonne waste-processing plant, two power substations, two additional transformers, a truck terminal and a hospital.