Haryana has ranked on top registering the highest investment implementation rate of over 82 per cent across India, apex industry body ASSOCHAM said on Thursday.
Ironically, Gujarat, touted as the preferred destination for investments, has according to Assocham analysis, recorded lowest investment implementation rate as just about 46 per cent of the total investment projects in the Western state are under the stage of implementation while the rest remained non-starter as of March 2013.
Amid other industrialized states, Rajasthan, Madhya Pradesh, Karnataka, West Bengal, Tamil Nadu and Jharkhand have recorded lower rates of implementation, highlighted the ASSOCHAM analysis.
About Haryana, the Assocham analysis says that “of the total investments worth over Rs 4.6 lakh crore attracted by Haryana as of March 2013 from various public and private sources, projects worth over Rs 3.8 lakh crore are being implemented, while only about 18 per cent of investments remained non-starter.”
However, in Haryana, over 11 per cent of investment projects are in the announcement stage, while implementation of over four per cent investments are stalled due to various reasons and there is no information of over two per cent projects, according to an analysis of investments carried out by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).
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. Punjab has attracted live investments worth over Rs two lakh crore as of March 2013, out of which investments worth over Rs 1.7 lakh crore are in the implementation stage and rest of the investments remained non-starter. While, over 17 per cent investments were in announcement stage, implementation of over one per cent projects was stalled and there was no information of about two per cent investment projects.
“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 D.S. Rawat, national secretary general of ASSOCHAM while releasing the analysis.
“Investments worth over Rs 69.5 lakh crore that is just 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 prevalence of global recessionary trends and slowdown of Indian economy investments across states have been kept on hold which is worrisome for a country that 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,” said Rawat. “Only states that try to address genuine concerns of investors to possible extent see higher implementation rates.”
Inadequate addressal of project induced displacement, failure of implementation of Resettlement and Rehabilitation (R&R) policies, environmental clearances, bureaucratic delays, lack of clear cut policies and others have been contributing to lower implementation rates of investment projects in India, further highlighted the ASSOCHAM analysis.