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97 projects shelved since Oct 2001: CMIE

Rakesh P Sharma in Mumbai

The sluggish economy is taking its toll on the investment front. In the past year, 97 projects worth Rs 1,72,184 crore (Rs 1,721.84 billion) have been abandoned, according to the latest survey of investment projects conducted by the Centre for Monitoring Indian Economy.

Around 34 power generation projects worth Rs 86,266 crore (Rs 862.66 billion) have been shelved.

The Rs 8,000 crore (Rs 80 billion) Pipavav power project failed to make any progress. Others projects that failed to take off include several fast-track ones like the Rs 2,369 crore (Rs 23.69 billion) Ib Valley power project.

According to the CMIE survey, which covered 7,055 projects, total investments till the end of October 2002 stood at Rs 15,21,755 crore (Rs 15,217.55 billion), a decline of 2 per cent over last year.

Around 570 projects worth Rs 50,983 crore (Rs 509.83 billion) were commissioned in the last four quarters. Around 2,560 new projects, worth Rs 1,36,229 crore (Rs 1,362.29 billion), were announced in the past year.

Meanwhile, Maharashtra continued to top the charts with investments worth Rs 1,60,699 crore (Rs 1,606.99 billion). It was followed by Gujarat with Rs 148,241 crore (Rs 1482.41 billin) and Tamil Nadu with Rs 139,770 crore (Rs 1397.70 billion).

A sector-wise distribution of the investment flow shows that while the manufacturing, mining and electricity sectors have seen a decline, infrastructure services is the only sector to have grown. Irrigation was near stagnant.

Investments in the manufacturing sector declined 4 per cent from Rs 2,90,022 crore (Rs 2,900.22 billion) in October last year to Rs 2,78,070 crore (Rs 2,780.70 billion) in 2002.

Within the manufacturing sector, fertilisers and petroleum products witnessed a significant drop in investments, while aluminium and the software sector posted growth.

Investments in refining dipped by Rs 30,046 crore (Rs 300.46 billion) in the past 12 months and in fertilisers, investments dipped by Rs 11,647 crore (Rs 116.47 billion).

Investments in communication services, which witnessed a substantial growth in the previous year, grew by less than one per cent during the past year.

On the other hand, investments in roads, which have been growing considerably in the past couple of years, continued to grow with an increase of 17 per cent over the past year.

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