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.