For the past three years, the Nusli Wadia group's flagship company, Bombay Dyeing, has been talking about relocating its high cost operations from Mumbai to some place else.

It is understood that the company has shortlisted two destinations in Maharashtra.

Maharashtra Industrial Development Corporation officials say that Bombay Dyeing is considering either Talegaon or Ranjangaon. The company is believed to be looking at 50 acres of land in either of the places to set up operations.

Its main concern is the proximity to Mumbai, reveal MIDC officials. If that is the deciding factor, Bombay Dyeing could settle for Talegaon, which is only 150 km from the city.

For better infrastructure and other facilities, it could plump for Ranjangaon, which is one of the most favoured investment destinations, especially for multinationals with manufacturing units.

Land here is available for Rs 450/sq metre. In comparison, land prices in Talegaon are Rs 600 per sq metre.

Bombay Dyeing, however, denies it has identified any relocation site. "The board has not taken any decision to relocate," asserts Ninu Khanna, managing director of Bombay Dyeing.

However, MIDC officials say that a couple of Bombay Dyeing senior managers have already made several trips to both Ranjangaon and Talegaon.

"They only have to decide which of the plots they want to take," says an MIDC official.

Like most textile mills, Bombay Dyeing has been sitting on prime surplus land.

A major burden here is that both its manufacturing units --Spring Mills at Wadala and another plant in Worli, are situated in high cost Mumbai. While it has given voluntary retirement schemes to its workers at Spring Mills, the Worli property continues to be a drain.

Also, it is yet to find buyers for its two plants based at Wada and Jamnagar. Sometime back, Wadia had reportedly met Maharashtra Chief Minister Sushilkumar Shinde.

One of the pleas was to secure permission to develop the mill land for commercial purposes. And moving operations outside Mumbai is just one more step towards that objective.