Only 11% investments announced in manufacturing sector recorded: Study
Investments worth only Rs 1.6 lakh crore have been recorded out of the total Rs 15 lakh crore announced in the manufacturing sector until September 2015, according to an Assocham study.
New Delhi: Investments worth only Rs 1.6 lakh crore have been recorded out of the total Rs 15 lakh crore announced in the manufacturing sector until September 2015, according to an Assocham study.
Amid states, over 68 percent manufacturing projects in Rajasthan have remained under implementation followed by Haryana (67.5 percent), Bihar (63 percent), Assam and Uttar Pradesh (62 percent).C
"Considering that long delays in projects' implementation hurts investors' sentiment, the government needs to have a strong plan to prioritise speeding up stuck projects' effective implementation by creating a target-oriented roadmap," Assocham Secretary General D S Rawat said.
"Even investors should be penalised if projects get delayed due to improper planning, change of ownership, lack of finance, absence of coordination with contractors and other related issues," he added.
Highlighting the impact of delay in implementation of projects in manufacturing sector across India, the study noted that out of 1,160 projects that are in different stages of implementation, 422 projects have reported time or cost overruns worth about Rs nine lakh crore.
Of these 422 delayed projects, only 80 projects have declared employment potential and these projects alone could generate 4.5 lakh jobs, said the study.
Delayed projects facing cost escalation have maximum share of 31 percent in Odisha followed by Karnataka, Rajasthan and Jharkhand (nine percent share of each).