Express News Service : Ahmedabad, Wed Sep 04 2013, 02:37 hrs
Gujarat has recorded lowest investment implementation rate in the last eight years. Just about 46 per cent of the total investment projects in the state since 2005 are under implementation while the rest remained a non-starter till March 2013, apex industry body ASSOCHAM said on Tuesday.
“Of the total investments worth over Rs 13.7 lakh crore attracted by Gujarat between 2005-March 2013 from various public and private sources, over half (54 per cent) of investments worth over Rs 7.4 lakh crore remained a non-starter,” read an analysis of investments in the state carried out by the Associated Chambers of Commerce and Industry of India (ASSOCHAM).
In Gujarat, over 40 per cent investment projects are in the announcement stage alone while the implementation of over six per cent of investments has been stalled due to various reasons.
There is no information about eight per cent projects, the ASSOCHAM analysis highlighted.
“A staggering 43 per cent of total investment projects worth Rs 52 lakh crore attracted by states across India remained a non-starter as of March 2013. While over 34 per cent of these investments are stuck at the stage of announcement, the implementation of about six per cent of projects has been stalled. There is no information about the remaining (three per cent) projects,” said D S Rawat, the national secretary general of ASSOCHAM.
With over 82 per cent of investment projects under implementation, Haryana has recorded highest rate of implementation of investments amid industrialised states throughout India.
Jammu and Kashmir (81.4 per cent), Punjab (79 per cent), Assam (72 per cent) and Chhattisgarh (69 per cent) are amid top five states that are currently witnessing a high rate of implementation of investments, according to ASSOCHAM.
“Investments worth over Rs 69.5 lakh crore, about 57 per cent of the total investments of over Rs 122 lakh crore attracted from various public and private sources, are under implementation stage as of March 2013,” said Rawat. “These dismal figures showcase that owing to global recessionary trends and slowdown of Indian economy, investments across states have been kept on hold. It is worrisome for a country that desperately needs investments,” he added.
“The prevailing unstable external and internal economic conditions, high inflation, credit availability et al have been affecting the investment scenario in India,” said Rawat. “Only states that try to address genuine concerns of investors see higher implementation rates,” he added.