With Rs 7 lakh cr investment in limbo, Gujarat has lowest implementation growth

Ahmedabad, Sept 3:  

Gujarat has recorded the lowest investment implementation rate as only 46 per cent of the total investment projects in the western state are under implementation while the rest remained non-starter as of March 2013, apex industry body Associated Chambers of Commerce and Industry of India (Assocham) said on Tuesday.

"Of the total investment proposals worth over Rs 13.7 lakh crore attracted by Gujarat as of March 2013 from various public and private sources, about 54 per cent worth over Rs 7.4 lakh crore remained non-starter," according to an analysis of investments carried out by Assocham.

In Gujarat, over 40 per cent of investment projects are in the announcement stage alone while implementation of six per cent has been stalled due to various reasons and there is no information of about eight per cent of projects.

With 82 per cent of investment projects under implementation, Haryana has recorded the highest rate of implementation of investments amid industrialised states in 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.

“A staggering 43 per cent of total investment projects worth a humongous Rs 52 lakh crore attracted by states across India remained non-starter as of March 2013, while over 34 per cent of these investments are stuck at the stage of announcement. Implementation of about six per cent of projects has been stalled and there is no information of the remaining (three per cent) projects,” said Mr D.S. Rawat, Secretary-General, Assocham.

Across India, investments worth over Rs 69.5 lakh crore, or 57 per cent of the total investment proposals of over Rs 122 lakh crore were under implementation as of March 2013, suggesting that investments across states have been kept on hold owing to prevalence of global recessionary trends and slowdown of Indian economy which desperately needs investments.

The prevailing unstable external and internal economic conditions, high inflation, credit availability and its cost along with a host of local problems like delays owing to land acquisition have been affecting the investment scenario in India. The only states that try to address genuine concerns of investors to possible extent see higher implementation rates.