Pune Job Crisis: 6,433 Industrial Units Shut in 5 Years

Pune: A major concern has emerged over Maharashtra’s industrial landscape, with 6,433 industrial units in Pune district shutting down over the past five years, according to data provided by the Union Ministry of Corporate Affairs.

Follow MahaENews-X on: Follow MahaENews on Instagram

The figures were revealed in a written response by the ministry to a question raised by Shiv Sena (UBT) MP Rajabhau Waje. According to the ministry, a total of 36,211 private companies across Maharashtra were closed, dissolved or removed from the official register during the same period.

The data has raised questions over the health of the state’s existing industrial base. While the government continues to announce major investment proposals and sign Memorandums of Understanding (MoUs) to attract new industries, concerns are growing over the ability to retain businesses that are already operating in the state.

Mumbai Records Highest Number of Closures

Mumbai recorded the highest number of company closures among the major industrial centres in Maharashtra, with 12,009 companies shutting down during the five-year period.

Thane followed with 4,704 closed companies, while Pune recorded 6,433 industrial unit closures.

Pune, Mumbai and Nashik have strong industrial ecosystems, established infrastructure and access to large markets. Despite these advantages, the closure of thousands of businesses has raised questions about the challenges faced by industries in the state.

Focus Needed on Existing Industries, Says Rajabhau Waje

Rajabhau Waje has stressed that attracting new investment should not be the government’s only priority. According to him, equal attention must be given to protecting and retaining industries that are already operating in Maharashtra.

Industrial land belonging to closed companies often remains unused for years due to outstanding loans, contractual disputes, tax issues, court cases and other legal complications.

Waje has called for these issues to be resolved quickly so that unused industrial land can be made available for new businesses and investment.

Infrastructure and Financial Problems Hit Industries

Industry representatives say that several factors are contributing to business closures in Pune and surrounding industrial areas.

These include poor infrastructure, financial difficulties, shortage of working capital, difficulties in loan restructuring and challenges in securing fresh bank finance.

Abhay Bhor, president of the Forum of Small Scale Industries Association, has raised concerns over infrastructure in Pimpri-Chinchwad. He pointed to problems related to roads, street lighting, drainage and industrial waste management.

Industry representatives have also complained that businesses are paying substantial taxes but are not receiving infrastructure facilities at a level proportionate to the financial burden.

Some Companies Shifted Outside Maharashtra

Industry associations have also claimed that some companies have shifted their operations from Pune and Pimpri-Chinchwad to other states.

Apart from industrial areas such as Chakan and other parts of Maharashtra, some businesses have reportedly moved to Gujarat and Uttar Pradesh, where industry representatives say they receive greater incentives and concessions.

The COVID-19 pandemic also affected several businesses financially. According to industry bodies, some companies struggled with depleted working capital after the pandemic and faced difficulties in securing the financial assistance required to restart or sustain operations.

Waste Management Becomes Another Challenge

Industrial waste management has emerged as another concern for small businesses in Pimpri-Chinchwad.

According to Pimpri-Chinchwad Small Scale Industries Association president Sandeep Belsare, some industries are required to transport industrial waste to Ranjangaon, increasing the cost of collection and transportation.

Industries in the Chakan region are also facing difficulties because of poor road conditions, industry representatives said.

Industrial Closures Could Hit Employment

The biggest concern arising from the closure of industrial units is its impact on employment.

Pune, Pimpri-Chinchwad, Chakan and surrounding areas have a large concentration of small and medium-sized industries that provide employment to thousands of workers.

When a company shuts down or moves its operations to another state, the impact is not limited to the business. Workers and their families can also face significant financial uncertainty.

Rajabhau Waje had also sought information from the ministry regarding the number of workers whose employment was affected by the closure of companies. However, he said that the ministry’s response did not provide specific employment-loss figures.

Therefore, the number of companies that have shut down is only one part of the issue. Determining how many jobs were lost and how many families were affected is equally important.

Maharashtra Government Faces Major Industrial Challenge

Maharashtra remains one of India’s leading industrial states, with major industrial centres spread across Mumbai, Pune, Thane, Nashik, Chhatrapati Sambhajinagar and other regions.

However, the growing number of business closures raises concerns at a time when the state is simultaneously attempting to attract fresh investment.

Industry representatives argue that businesses need reliable roads, electricity, water supply, waste management, transportation infrastructure and other basic facilities to remain competitive.

At the same time, financially distressed businesses may require easier access to credit, restructuring support and targeted policy incentives.

The latest figures have therefore put the spotlight not only on Maharashtra’s efforts to attract new industries, but also on the more pressing question of how existing businesses can be retained, jobs protected and industrial growth made sustainable.