Fadnavis Defends State Record After 4,704 Firms Shutter in Thane
Maharashtra Chief Minister Devendra Fadnavis defended the state's industrial track record on Friday, stating that 76 percent of companies reported to have shut down over the past five years were non-functional or defunct. The clarification followed criticism from opposition leaders over parliamentary figures showing that 36,211 industrial units closed across Maharashtra, including 4,704 in Thane district.
According to data presented in the Lok Sabha by Union Minister of State for Corporate Affairs Harsh Malhotra in response to a question by Shiv Sena (UBT) MP Rajabhau Waje, the closures included 12,009 industrial units in Mumbai, 6,433 in Pune district, and 4,704 in Thane district.
Responding to Nationalist Congress Party (SP) chief Sharad Pawar, who highlighted the closures and questioned the state's business climate, Fadnavis shared detailed statistics on social media. He stated that between 20,000 and 22,000 companies in Maharashtra close annually on average, but most were inactive rather than operational closures.
"This year, 76% were dysfunctional, companies that never commenced operations, while 12% opted for mergers and 2% were dissolved," Fadnavis said. He added that the Union Ministry of Corporate Affairs had struck off 600,000 inactive companies during a special drive in 2019-20, arguing that the increased deregistration of inactive entities does not reflect a mass shutdown of running enterprises.
Fadnavis noted that Maharashtra remains the national leader in registered entities, with 396,000 active companies in the state, including 45,525 new firms registered over the past year. He claimed active companies in the state grew from 678,000 in 2015-16 to 2.11 million in 2026.
Opposition leaders continued to question the government's stance. Pawar raised concerns regarding job losses and worker compensation, pointing also to 20 firms leaving the Chakan industrial area in Pune due to infrastructure and traffic issues. MP Rajabhau Waje asked the state to account for the remaining 24 percent of closed units and the welfare of affected workers.
To address concerns in Pune's Chakan industrial belt, Fadnavis said Industries Minister Uday Samant has been instructed to resolve corporate issues. A task force under the Pune district collector and an industry grievance redressal cell have been established to fast-track road repairs and traffic management.
