As Devendra Fadnavis begins his third term as Maharashtra’s Chief Minister, he faces a host of formidable challenges that will test his administrative and leadership skills. From reviving shelved mega-projects to tackling the state’s mounting financial crisis and addressing acute water scarcity, the road ahead is far from easy.
Reviving Stalled Mega Projects
Fadnavis’s first major hurdle will be to revive two massive projects that were scrapped by the previous Uddhav Thackeray-led Maha Vikas Aghadi (MVA) government.
- Oil Refinery and Petrochemical Project: Initially planned with a ₹3 lakh crore investment from Saudi Arabia’s ARAMCO at Nanar and later shifted to Barsu in Konkan, this project was vetoed by the MVA on environmental grounds. Its revival could significantly bolster Maharashtra’s economy.
- Jaitapur Nuclear Power Plant: Set to be the world’s largest nuclear power facility with a 9,900 MW capacity, this ₹1.12 trillion project with French firm Areva was similarly shelved. Despite its immense potential to address power shortages, the project faced stiff resistance from local communities and environmental activists.
Fadnavis will need to negotiate skillfully with stakeholders, including local villagers, to secure their support for these initiatives.
Tackling Maharashtra’s Financial Crisis
Maharashtra’s financial health is precarious, with a public debt of ₹7.82 lakh crore, second only to Tamil Nadu. The state faces repayment obligations of ₹2.75 lakh crore over the next seven years, while populist schemes like Ladki Bahin, costing ₹40,000 crore, add further strain.
Other pressing financial concerns include:
- A ballooning salary bill for the state’s bureaucracy, projected to reach ₹1.59 lakh crore in three months.
- A rising pension burden of ₹74,011 crore.
- Interest payments nearing ₹56,727 crore.
Bringing fiscal discipline will require tough policy decisions, including optimizing expenditure and accelerating revenue-generating initiatives. Despite being India’s leader in Foreign Direct Investment (FDI), only seven of Maharashtra’s 36 districts contribute significantly to its GDP, underscoring the need for balanced regional development.
Addressing Water Scarcity
Water scarcity remains a critical issue in Maharashtra, especially in drought-prone regions. Fadnavis’s earlier initiative, the Jalyukt Shivar Yojana, which aimed to alleviate water scarcity in 5,000 villages annually through rainwater harvesting, was discontinued by the MVA government. A report by the Centre for Science and Environment noted that while the scheme created water storage for 3.4 million hectares of irrigation, its impact was insufficient to meet the state’s vast needs.
The Gosikhurd Irrigation Project, which has an annual irrigation potential of 2,50,800 hectares, also demands immediate attention. A work in progress for over four decades, its completion by June 2026 could significantly enhance agricultural productivity, boost farmers’ incomes, and reduce farm suicides, which account for a staggering 37.6% of such incidents nationally.
A Leadership Test
As Fadnavis embarks on his new term, the revival of mega-projects, financial stabilization, and tackling water scarcity will define his tenure. His ability to deliver on these fronts will not only shape Maharashtra’s future but also set a benchmark for his leadership.
“We must focus on reviving stalled projects and addressing the people’s most pressing concerns,” Fadnavis stated, signaling his commitment to tackling the challenges head-on.