Industrial body ASSOCHAM has severely castigated the investment environment in the state of Chhattisgarh in its report on 'impact of delay in investment implementation in C.G' and has called for urgent steps for clearing impediments thar are driving investors away.
Reasons for serious cost overruns:
Delay in land acquisition,
Lack of clearances( both environment and non-environment),
Fund constraints,
Poor promotor interest,
Unfavourable market conditions,
Dearth of skilled labour,
Poor supply of fuel / feedstock / raw material,
Law and order problems.
151 projects with investment worth almost Rs 3.00 lakh crore have remained nonstarter, which is about 55 percent of the total outstanding investments worth Rs 5.6 lakh crore attracted by Chhattisgarh from various domestic and foreign sources both in public and private sectors.
It is of worthy mention that TOI on April 8 this year has reported how MOUs signed during Global Investors Meet are nonstarters and 90 percent have failed to take off in Chhattisgarh.
ASSOCHAM national Secretary General D.S.Rawat said, among the projects stuck in Chhattisgarh as of FY 2014-15, electricity sector had maximum share of 52 per cent, followed by manufacturing (38 percent), mining (6 percent), non financial services (3.5 percent), construction and real estate (0.2 percent) and irrigation (0.2 percent).
In severe criticism of government's policy makers, the report says that they have failed to garner a bigger role in exploiting state's true potential. Its contribution to Indian economy has remained at just 1.6 per cent in 2013-14 as it was in 2004-05 as well.
While state government has been claiming to be working overtime for agriculture sector, which employs 75 per cent of state's work force, ASSOCHAM report states that Chhattisgarh paints a grim picture even here as agriculture growth in state had declined from 26 per cent in 2010-11 to less than 2 per cent in 2014-15.
(TOI, Friday, July 24, 2015)
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