MSME hub, temple town sound bells ahead of 2024 Lok Sabha elections

In temple town, Ram Mandir and road conditions become poll agenda for locals

On the outskirts of Chhatrapati Sambhaji Nagar (erstwhile Aurangabad) in Maharashtra, the micro, small and medium enterprises (MSME) industry is facing simmering challenges such as systemic corruption, and a lack of political will to attract foreign investment.

MSMEs in Waluj claim that these challenges, from the pandemic times, are capable of breaking the backbone of the sector here.  

A manufacturer based in the Waluj MIDC (Maharashtra Industrial Development Corporation) region, specialising in farm equipment for export to Europe, asserts that systemic corruption contributes to financial losses and operational delays in their business.

“Despite our consignment getting approved for export, an officer at the port in Mumbai alleged that the material used to manufacture our equipment was sub par. However, the client we were exporting to had given a nod to the consignment before. I was asked to pay Rs 90,000 for approving the consignment,” the 50-year-old told Business Standard.

Exporters say that rampant instances of systemic corruption dent India’s MSME sector that is striving to carve a niche for itself in the growing export market.

In India, MSME exports shot up to $125.5 billion in 2023, a 42 per cent increase from $88.3 billion in 2021.

MSMEs registered in Maharashtra alone export goods worth $24.2 billion, second only to Gujarat, whose exports stand at $26.1 billion. Waluj is one of the major MSME zones in Maharashtra.

Situated just 15 km from Chhatrapati Sambhaji Nagar, it is home to a thriving industry. Units of all sizes located here manufacture auto components, food products, pharmaceuticals, and electrical equipment, among others.

MSMEs here also claim difficulty in procuring land within the MIDC and on its outskirts owing to challenges such as bribery and limited infrastructure.

“We have to pay an amount equal to that of the plot in ensuring documentation is approved, and acquisition is completed across different levels. This is the ground reality that very few people talk about,” another 55-year old auto component manufacturer said.

Here, the MIDC is spread across 13 square km.

Manufacturers of different companies suggest they have to scout for land outside the perimeters of this region since the place has now run out of plots for expansion.

“One has to build everything from scratch if we move outside MIDC. This includes drainage lines, electricity, and we also have to buy water. That is not very sustainable,” said Sunil Bhosale, a manufacturer who supplies auto components to two-wheeler majors in the country.

“The major issue is political will in Sambhaji Nagar. This is why we have not seen major companies invest here. Around 30 years back, we saw big companies such as Bajaj Auto setting up its operations here but now, we don’t see that happening,” said Sunil Mundada, chief operating officer (COO), Metalman Auto, a manufacturer of sheet metal and tubular fabricated products.

Mundada added that when larger corporations invest in a region, it gives a fillip to manufacturers of all sizes to generate employment at multiple levels.

Others explain that ‘religious hypersensitivity’ in Sambhaji Nagar scares investors, and limits flow of capital owing to political uncertainty in the city.

But, the incumbent member of Parliament (MP) from the area, Imtiaz Jaleel, says the region is now seeing better days.

“The blot of religious hypersensitivity has gone down in this place. It depends on what kind of leadership we have. There is a lot of scope in the city for investment,” the All India Majlis-E-Ittehadul Muslimeen (AIMIM) MP told Business Standard.

The region goes to polls along with Shirdi on May 13.

Shirdi

The temple town of Shirdi is known for its religious tourism. However, years following the pandemic, locals suggest the city has seen limited activity in terms of tourists flocking to the Sai Baba temple.

Locals selling religious merchandise such as shawls, flowers, and souvenirs say that they have seen the average footfall go down to almost 10 per cent of what it was before 2020.

“It is even difficult to make enough sales to ensure our rents are paid, and salaries given to our workers. Inflation has gone up, and with fewer people coming to Shirdi, the future looks uncertain,” a 42-year old Sachin, who sells prasad and souvenirs, said.

Others suggest that construction of the Ram Mandir in Ayodhya has led to devotees flocking to the North Indian city.

“Ever since the Ayodhya Ram Mandir came up, we're concerned that people will now go north and not come to Shirdi. The effect is visible after the temple’s construction was announced,” another person said.

The incumbent MP from Shirdi, Sadashiv Lokhande, a member of the Eknath Shinde's Shiva Sena, did not visit businesses within the temple town after the pandemic, locals said.

“We gave him a chance, and he did not visit us or our villages during the pandemic. There is no employment since the farms have run out of water. Roads connecting Shirdi are in bad shape,” 25-year-old Tushar, a local, said.

Meanwhile, a security guard stationed outside the Shirdi temple said roads only improved after Prime Minister Narendra Modi began visiting the town frequently.

“The real condition of roads will be visible outside Shirdi. A 15-minute drive takes 30 minutes. During monsoons, the roads become so bad that it takes 45 minutes,” he said.

“That money will soon end. Don't give us cash, give us food to eat instead,” she said.