Businesses in Kolhapur, specifically in the five Maharashtra Industrial Development Corporation (MIDC) zones, are struggling to find available land parcels for expansion, hindering their growth prospects. The vice-president of the Kolhapur Chamber of Commerce and Industries, Sanjay Shete, expressed concerns over the persistent scarcity of land despite government incentives for expansion, with many small-scale industries facing challenges finding suitable space for growth.
Efforts are underway to establish a sixth MIDC in Kolhapur, spanning 650 acres, to address the demand for expansion, particularly focusing on foundry and casting units. However, the completion of this MIDC is still about six months away. Dhananjay Mahadik, a Rajya Sabha Member of Parliament, highlighted the ongoing demand for expansion even with the existing MIDCs, emphasizing the difficulties in acquiring land due to local resistance to industrialization.
Sangli district, located near Kolhapur, also faces similar challenges regarding land scarcity for industrial expansion, prompting factories to either look for distant locations or purchase agricultural land for their operations. Additionally, high power tariffs in both Kolhapur and Sangli are a significant concern for industries, with Prakash Shah from a plastic pipe company in Sangli lamenting the impact of these tariffs on operational costs, particularly in comparison to regions with lower tariffs attracting businesses away from the area.