Small Business Owners in Kudalwadi Scramble for Land Amid Rising Prices
Pimpri, February 12, 2025 – Pimpri-Chinchwad, Pune’s industrial backbone, has suddenly seen the encroachment drive department nearly 2,200 small businesses to death. In Chikhali and Kudalwadi, where these businesses once flourished, bulldozers have already razed 2,317 structures over 372 acres, setting panic among small entrepreneurs.
With crores of rupees’ worth of machinery lying unattended with no location for relocating them, business owners are in desperate search for the land on which to operate. But yet another challenge has emerged; landowners in Moshi, Talawade, Bhosari, Chakan, and Kurli have quadrupled land lease rates to the extent that it has become impossible for these already struggling entrepreneurs to find an alternate location.
The end result is a calamitous economic setback, against which over one lakh workers lost their jobs, while industrialists further face a situation of almost financial ruin, logistical nightmares, and all costs rising from every direction.
A City Born Out of Industry Now Sees Crisis
For long, the Pimpri-Chinchwad has been known for its manufacturing and small-scale industries that give employment to thousands of workers, including migrants coming from all over India. While large multinational corporations are housed in the city, it is the network of over 5,000 small businesses that acts as its backbone.
With space constraints in Bhosari MIDC, many industrialists went to nearby Chikhali, Kudalwadi, Hargude, and Pawar Vasti, where they rented land and built paper sheds to run small industries. These were as follows:
- Spare parts manufacturing
- Plastic and fiber production
- Rubber and metal industries
- Recycling units and warehouses
These clusters have over the years become one of the major industrial ecosystems, giving employment to more than a lakh workers. However, there were the rising concerns of pollution and fire hazards, which prompted the Municipal Corporation to go for an aggressive encroachment removal campaign.
Drive for Demolitions: What Went Wrong?
PCMC had issued notices to landowners last year about demolitions that would soon occur. Many landowners failed to inform businesses whose activities were on land they purported to own.
Consequently, when the Municipal Corporation’s demolishing teams arrived, many small business owners were not alerted in advance, giving no time for them to relocate their fairly expensive machinery.
- The cost of machinery in these units ranges from ₹5 lakh to ₹2 crore.
- Many businesses were unaware of the eviction notices, blaming landowners for not informing them.
- Only 15 days were given to vacate, which entrepreneurs say is too short to remove complex machinery.
Though there were pleas for time, demolitions continued, forcing businesses to abandon their equipment and scramble for alternatives.
> “We had no idea this would happen so suddenly. We should have been given more time. Now our entire business is at risk,” said a factory owner in Kudalwadi.
A Land Crisis: Prices Skyrocket as Entrepreneurs Scramble for Space
With their units demolished overnight, business owners rushed to secure land in alternative locations like Bhosari MIDC, Moshi, Talawade, Charholi, Chakan, and Kurli.
But landowners in these areas saw a lucrative opportunity to raise lease rates four times, entering into the realm of almost impossible relocation.
- Land that was previously being rented at ₹10 per sq. ft. is charged ₹40 per sq. ft.
- The cost of cranes and equipment to transport heavy machinery has also increased.**
- Only 200 businesses have found space in Bhosari MIDC; 2,000 more are still searching.
“We are being squeezed from all sides. The government wants us to relocate, but there is no affordable land left. How can small businesses survive?” lamented an industrialist from Chikhali.
Workers Suffer: One Lakh People Jobless Overnight
Beyond the financial and logistical struggles that business owners face, the encroachment drive has massively affected workers.
Suddenly, more than one lakh workers, most of whom are migrant laborers from Uttar Pradesh and Bihar, have found themselves without jobs or shelter.
-Many workers lived inside the industrial sheds that were demolished.
- With no money and nowhere to go, some have been forced to sleep on the streets.
- Factories that provided stable employment have disappeared overnight.
A labor union representative described the situation as a humanitarian crisis, urging the government to step in with relief measures.
“These workers came here looking for a better life. Now they are left with nothing. The government must offer assistance.”
PCMC’s Response: Safety Over Business Interests
Despite the reactions, PCMC has stood firm for the safety of its citizens, for which these unregulated industrial clusters were a disaster just prepared to happen.
Municipal Commissioner Shekhar Singh defended the action, stating:
“We cannot allow illegal industrial units to operate without safety approvals. The lack of fire safety measures was putting thousands of lives at risk.”
Singh further cited the unfortunate fire incident at Talawade, where 14 people lost their lives, as a clarion call for stricter actions.
-Most of the demolished structures did not have work NOCs from the Fire Brigade.
-Pollution control measures were routinely ignored.
-While units blatantly ignored safety norms for industrial operations.
Singh added, “The city needs planned industrial growth, not illegal setups that endanger workers.”
PCMC’s plan for the long term is to:
- Clear illegal industrial settlements across Pimpri-Chinchwad.
- Ensure zoning laws are not violated.
- Encourage industries to function from designated industrial zones.
Small business owners ask for moreThe entrepreneurs are saying PCMC’s attitude has always been harsh on them.
Sandeep Belsare, President of Pimpri Chinchwad Small Industries Association, was concerned about no alternative arrangements provided.”I think the 15-day deadline was unfair. Relocation of an industry takes months, not days. We needed more time.”Now the industrialists are asking the government for:Alternatives for land at an affordable rate.Financial assistance or relocation subsidies.To make much better planning before such demolitions take place again.No help from the government, and many fear their businesses will be buried forever, with consequences on revenue, jobs, and regional economics.
Pimpri-Chinchwad is standing at the crossroads. The demolition of illegal industrial units by the PCMC was aimed at safety and proper urban planning, but the aftermath left thousands on the verge of survival.The key challenge lies in striking a balance between enforcing the law and protecting the rights of small business owners and workers.If an intervention occurs too late, the planning and policy amendments would have far-reaching repercussions on the economic face, altering the landscape for small industries and for the wider stability of Pune’s industrial system.As the dust settles on the demolitions, the lingering question will be: Will Pimpri-Chinchwad find a means of sustainable growth while stifling the expectations of its small entrepreneurs?
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