States Matter

Updated: Apr 8 2014, 04:33am hrs
It is just as well that the BJPs manifesto talks of greater cooperation between the Centre and the states since, if there is any hope of getting Indias stalled investment cycle back on track, a lot will depend upon state governments. Of the top 50 stuck projects in the CMIE list of 733 projectsthey account for around two-thirds of the valueonly 8% are stuck on account of just the central government. Over half are stuck on account of not being able to get landa state subject. Another 25% were stuck due to not being able to get coal or gas. Theoretically, this is a central subjectalbeit one on which it has little controlbut unless the power sector becomes more viable, and that requires action by the state, these projects arent going to move.

An analysis of 311 stuck projects by the statistics and programme implementation ministry, similarly, shows just 29 are stuck due to environmental reasons. Look at it anyway you like, the role of the state governments is critical.