Amid a controversy over Maharashtra losing some big-ticket industrial projects, Congress leader Prithviraj Chavan has claimed that the country is heading towards a new "license-permit raj". Political instability makes investors nervous, the former state chief minister told reporters here on Tuesday.

The alliance government of the Eknath Shinde-led Shiv Sena faction and the BJP in Maharashtra is under fire after Gujarat bagged some mega-investment projects, allegedly at Maharashtra's expense. Recently, a Tata-led consortium and Airbus announced a military aircraft manufacturing facility in Gujarat.