Major problems faced by the industry according to the NCC:
- The recent hike in interest rates by the Reserve Bank would add to the burden of investments in business.
- Funds for expansion and modernization in the region will get pushed to the back burner.
- Commercial power rates in the region are very high and output seldom matches the requirements
- The cost of production in Vidarbha (which contributes over 67% of the state’s combined output) is Rs.2.30 per unit while end user costs for commercial power is as high as Rs.10 per unit
- Maharashtra Industrial Development Corporate arbitrarily increased guidance value of land in the area.
- As a result, cost of setting up plants has gone up substantially, leading to industry postponing investments
- The region is rich in natural resources but lacks infrastructure in terms of factories to process them
- Hence, all resources from the region gets transported outside for processing, viz., paddy, cotton, iron ore etc.
- No administrative redress at the government level to entrepreneurs in the region. People travel 850-kms to Mumbai to get paperwork done.