A city's ambition held hostage by 10 acres of silence

55 firms stalled, 20,000 jobs at risk as decade-long demand for dedicated IT cluster goes unanswered

Lokmat News Network

Raj Patil

Chhatrapati Sambhajinagar

Industry stakeholders warn that without a dedicated IT cluster, the city’s tech growth will remain fragmented and reliant on commercial spaces instead of a structured industrial ecosystem.

At present, CSN is emerging as the EV capital of Maharashtra with investments of over Rs 1.5 lakh crore, yet the city continues to struggle for just 10 acres of land for its IT sector. IT companies remain scattered across Chikalthana and other parts of the city, with stakeholders pressing for a structured IT cluster in peripheral zones to ensure independent sectoral growth, free from dependence on commercial builders. Despite the presence of STPI for over three decades, only a handful of companies have operated consistently far from the thriving tech ecosystems of cities like Pune and Nashik, and below CSN’s own aspirations. Multiple delegations have been submitted to the government by the Chamber of Marathwada Industries and Agriculture (CMIA), Marathwada Accelerator for Growth and Incubation Council (Magic), Marathwada Association of Small Scale Industries (Massia), and other stakeholders, demanding a dedicated industrial area for IT companies.

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IT sector growth stalls amid land crunch

According to Lokmat Times report, despite 67 IT firms employing over 4,000 people and companies like Alten gaining global recognition, city’s IT sector continues to underperform. Industry sources cite the persistent lack of dedicated industrial land as the key bottleneck restricting expansion and limiting the city’s IT growth potential.

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55 IT firms' expansion stalled, 20,000 jobs at risk

Around 55 IT firms in city have expansion plans but lack industrial land allocation, while 3- 4 major investors remain on standby. The delay puts nearly 20,000 potential jobs at risk, with concerns that investors may withdraw and skilled professionals could migrate to cities like Pune if the situation persists.

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Why IT needs industrial land?

Industrial land is nearly 1.5 times cheaper than commercial land, offers subsidies, lower setup costs, and GST benefits, making the city more attractive and boosting IT investment competitiveness.

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IT location cost puzzle

In Shendra (Auric), IT firms get cheaper land but face higher commuting costs. Chikalthana offers city proximity and lower travel time, but with high land prices. This creates a cost balance issue for investors and policymakers. Stakeholders suggest allotting peripheral land in industrial zones at industrial rates to reduce costs and dependence on commercial builders.

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IT expansion push

"IT firms like ours have been on rental for years due to lack of dedicated land. Around 50 to 60 companies now plan expansion, employing up to 5,000 people each, seeking 10 acres so local talent stays."

- Sachin Kate, co-founder, IT firm, Chhatrapati Sambhajinagar

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IT land demand

"Several rounds of delegations to MITL and MIDC, with a list of 50 IT companies seeking expansion, have yielded nothing. Persistent lack of dedicated land has grounded every plan. The sector now needs 10 acres to build a proper ecosystem and to stop emerging talent from walking out of the city for good."

-Utsav Machhar, president, CMIA

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