Gujarat relegated to fifth position in investment, says latest Reserve Bank of India study

By Rajiv Shah

The latest Reserve Bank of India (RBI) study, “Corporate Investment: Growth in 2012-13 and Prospects for 2013-14”, prepared in the Corporate Studies Division of the Department of Statistics and Information Management, has found that Gujarat has been pushed to the fifth position in investment destination. Analysing on the basis of capital expenditure intentions of the companies in private and joint business sector, the study has found that four states have overtaken Gujarat – Odisha, which is No 1 investment destination, with 27 per cent of all investments, followed by Maharashtra (19.1 per cent), Punjab (10.5 per cent), Andhra Pradesh (5.6 per cent) and Gujarat (5.4 per cent).
In fact, year-wise figures for the last one decade suggest that Gujarat did become No 1 investment destination around mid-2000s. It received highest investment in 26.4 per cent of all investments of the country in 2007-08. This was also the highest ever share for India. But thereafter, Gujarat’s deceleration began – next year, 2008-09, it was 18.4 per cent; then it reached a pitiable 3.2 per cent in 2009-10, again gaining somewhat in the following year, 2010-11, reaching 9.6 per cent, followed by 9 per cent in 2011-12. The last financial year’s of 5.4 per cent has come despite January 2013 Vibrant Gujarat investment summit, which appears to have had little or no impact on the investment climate.
The study captures capital expenditure (investment in fixed assets) intentions of the companies in private and joint business sector in order to assess broadly the short-term changes in business sentiment. The analysis is based on envisaged cost of projects for which funds are raised from banks/FIs or through External Commercial Borrowings (ECB) or domestic equity issues. In all, 969 companies were found to have made investment plans during 2012-13 at an aggregate cost of Rs 2,634 billion as compared with investment plans of Rs 2,509 billion by 1,127 companies in 2011-12.
“Of these, the number of projects assisted by banks/FIs came down to 425 (aggregate cost Rs 1,963 billion) in 2012-13 from 668 projects (aggregate cost Rs 2,120 billion) in 2011-12. However, 32 such projects were cancelled/modified during the current year and the cost of projects still under implementation has been revised to Rs 1,916 billion. The investment plan in 2012-13 was led by high value projects (projects with cost more than Rs 50 billion & above) envisaged in power, metal & metal products and telecom industries”, the study says.
Further, the study says, “the time phasing details of the investment intentions of these companies indicate investments to the tune of Rs 2,919 billion in 2012-13, which is lower by 20.8 per cent than the revised estimate for 2011-12. Further, based on the plans up to 2012-13, the capital expenditure already planned in 2013-14 aggregated to Rs 1,620 billion. Thus, for matching the level of aggregate capital expendtireu (capex) of 2012-13 in 2013-14, a minimum capital expenditure of around Rs 1,299 billion would need to come from new investment intentions of the private corporate sector in 2013-14, which going by the assessment on date, appears to be non-achievable.”

Referring to state-wise pattern of projects in order to reflect industry preference, the study notes, “Spatial distribution of projects tends to vary considerably from year to year reflecting industrial preference. Location of projects for a particular industry depends on many factors such as availability of raw material and skilled labour, adequacy of infrastructure, market size, growth prospects, etc. Furthermore, sanction of high value projects also changes the spatial pattern.”

The study underlines, “It is observed that, most of the investment proposals are undertaken in Maharashtra, Gujarat, Andhra Pradesh, Tamil Nadu and Karnataka, which are considered as industrially advanced. Share of Odisha has increased over the years due to its mineral resources. While Gujarat attracted investment proposals mainly in the industries like infrastructure, petroleum products, metal and metal products and textiles, project investments in Maharashtra has been across almost all industries with larger share coming from infrastructure (mainly power and telecom), transport services, textile and construction.”
It further says, “States like Odisha (topped the list in 2009-10 and 2012-13), Chhattisgarh (occupied top position in 2010-11) and Madhya Pradesh became favoured destination for the industries like power and metal & metal products. Telecom Industry projects are usually well spread across a number of states resulting in higher share of multiple states. Odisha, Maharashtra and Punjab together accounted for 48.4 per cent of the envisaged cost of projects for which institutional assistance was sanctioned in 2012-13.”
The study points towards how “Odisha and Punjab attracted high value projects in power and metal and metal products”, adding, Projects in power and electrical equipments and electronics industries are to be based in Maharashtra.” Even then, it suggests, “The share of Maharashtra in total envisaged cost of projects decreased in 2012-13 as compared to the previous year, along with Karnataka, Gujarat and Tamil Nadu.”

Comments

'Blatant violation' of law by Central government in making NREGA payments

By Our Representative In September third week, NREGA workers across the country were mobilised for two day so raise their issues and submit a memorandum to the Prime Minister. Organised the NREGA Sangharsh Morcha (NSM), a collective of groups that work with NREGA labourers across the country, workers from 13 states -- Andhra Pradesh, Bihar, Chhattisgarh, Gujarat, Haryana, Jharkhand, Karnataka, Madhya Pradesh, Odisha, Rajasthan, Telangana, Uttar Pradesh and West Bengal -- carried out Kaam Do Abhiyaan, staging demonstrations and rallies against what they called blatant violation of law by the Central government in making NREGA payments. While NREGA has had very positive impacts, it has lately become fruitless, exploiting labour, even though workers who have put in honest hard work have to wait for their wages endlessly, it was suggested. In such a situation, there is a need to firm up NREGA implementation and end systematic corruption to ensure that workers get their basic NREGA entit

Fascism on prowl? Religious meet 'deeply pained' at silence of Church, bishops, priests

Counterview Desk The ‘Forum of Religious for Justice and Peace’which held its 17th National Convention at the Montfort Social Institute, Hyderabad, Telangana from 22 to 24 September 2022 on the theme “Deepening our Identity as Religious: Responding to the Signs of the Times”, has expressed concern “at the deteriorating situation of our nation on every front”, especially stating, “Fascism seems to have come to stay” in India. At the same time, the convention, which took place with the participation of 60 persons from 16 states representing 20 religious congregations, in its unanimously-adopted statement added, “We have reached abysmal depths on every parameter: be it social, economic and political”, underlining, “The poor in India become poorer every day; the rich and powerful continue to profiteer at their expense and amass scandalous amounts of wealth.” Text: We, members (63 women and men Religious, from 16 states representing 20 Congregations) of the Forum of Religious for Justice

Rajasthan cops 'halt' Gujarat Dalit women's rally: homage to untouchability victim boy

By Our Representative In a surprise move, the Rajasthan police stopped a Dalit women's rally from Gujarat on the borders after it crossed Gujarat alleging that it would "disturb peace" in village Surana, Jalore district, where the gruesome incident of death of a Dalit boy took place on August 13 after he was brutally beaten up by his teacher on touching the drinking water pot. Sources said, while the Gujarat government had "no objection" in allowing the rally, which originated from the Dalit Shakti Kendra (DSK), an empowerment-cut-technical institute for teens founded by human rights leader Martin Macwan, on September 24 morning, the Rajasthan police stopped it for two and a half hours before allowing it to proceed to Surana. The decision to take out a women's rally was taken at a DSK meeting on September 5 following a condolence meeting of the NGO Navsarjan Trust, also founded by Macwan, activists committed to work against caste-based discrimination, orga

Introducing non-native cheetahs is 'not equivalent' to restoring pride in the nation

By Bappaditya Mukhopadhyay* The Cheetahs from the African continent has finally been introduced to India by the Indian Prime Minister on his 72nd birthday. The process had started with the previous Government in 2009. However, the Supreme Court clearance was pending owing to the objection by the National Tiger Conservation Authority (NTCA) plea to reintroduce cheetahs. Finally the clearance was obtained in January 2020 and thereafter Kuno National Park (KNP) was chosen for the reintroduction of first set of Southeast African Cheetahs. In the near future, depending upon the success story of the current reintroduction, more cheetahs from South Africa may also be introduced. This exercise has generated a lot of interest among various stakeholders with opinions on both sides galore. It is important to pose some questions that surround the whole exercise. Let us evaluate some of these arguments. The first set of arguments are quite detached from the issues of conservation as they most

'Military diplomacy': US praises Bangladesh Army for leadership role in UN operations

By Kamal Uddin Mazumder* As the Indo-Pacific region represents the world’s economic and strategic center of gravity, the Indian Ocean today is becoming the centerpiece of all geo-strategic play. Cooperation in the region is crucial to implementing the international community’s global agenda, including achieving the UN’s Sustainable Development Goals. Major powers like the US have enhanced and deepened their strategic engagement and leadership roles with countries in the region. The Indo-Pacific Army Management Seminar, or IPAMS, is a U.S. Army Pacific (USARPAC) initiated conference that is aimed at facilitating and enhancing interactions among the armies of the Indo-Pacific region. This year's 46th Indo-Pacific Armies Management Seminar (IPAMS)-2022, co-hosted by the Bangladesh Army and US Army Pacific (USARPAC), concluded in Dhaka. The objective of IPAMS is to promote peace and stability in the region through mutual understanding, dialogue, and friendship. It is the largest confer

Buddhist shrines were 'massively destroyed' by Brahmanical rulers: Historian DN Jha

Nalanda mahavihara By Our Representative Prominent historian DN Jha, an expert in India's ancient and medieval past, in his new book , "Against the Grain: Notes on Identity, Intolerance and History", in a sharp critique of "Hindutva ideologues", who look at the ancient period of Indian history as "a golden age marked by social harmony, devoid of any religious violence", has said, "Demolition and desecration of rival religious establishments, and the appropriation of their idols, was not uncommon in India before the advent of Islam".

Shocking? No Covid vaccine trials conducted on pregnant, lactating women: RTI reply

By Rosamma Thomas* A Right to Information applicant who sought details of safety trials conducted in India on pregnant and lactating women for three Covid vaccines in use in India – Covishield, Covaxin and ZyCov-D -- was shocked to learn from the Central Drugs Standard Control Organization (CDSCO) that Serum Institute, manufacturer of Covishield, and Cadila Healthcare, manufacturer of the ZyCov-D vaccine, had not sought permission for such trials. Bharat Biotech, manufacturer of Covaxin, had sought permission for trial on pregnant women and later withdrawn its application. This response , provided after the applicant was initially unsatisfied with the response and went in appeal, is from the joint drugs controller, CDSCO. It was dated September 13, 2022. One researcher closely following the vaccine rollout, however, is of the opinion that the lack of a trial on pregnant and lactating women is a blessing; potential trial participants and their unborn babies thus escaped harm. Aruna Ro

Is coal import dependence of more than 50% by 2047 of any relevance to India?

By Shankar Sharma* I have read the article " Building Resilience in India’s Power Sector " by N Vedachalam, released by the Observer Research Foundation, with a lot of interest. I expected it to provide few useful recommendations to our authorities in charting out a sustainable pathway to green energy transition much before the climate catastrophe push our communities to the precipice. But I am sorry to say that the overall discussions or the message implied in the article disappointed me. I was expecting the article, coming from an engineer with past experience in the power sector, to discuss the much needed recommendations to put the power sector on a sustainable developmental pathway. But I could notice mostly technical jargon and a lot of statistical information, which may already be available in the public domain. The article also seems to have simply accepted what some of the official agencies seem to have indicated as inevitable for the power sector in our country;

Older than Delhi, no other school may have witnessed so many vicissitudes as this one

By Firoz Bakht Ahmed* Behind every book there is a writer or writers. Are the books written for the personal gratification of authors? Is the purpose utilitarian, educational or to gain public ovation? There are writers who publish books because they are inspired by a purely disinterested and fair-minded pursuit of knowledge and to clarify the issues that agitate them and society. The book under discussion is a masterstroke on the life and times of not only an institution at Ajmeri Gate, Delhi — Anglo Arabic School — but about the complex relationship between the school and the cajoled Muslim community. Just while you are at Ajmeri Gate, supposedly, the border of Old and New Delhi, barely a few meters from the cacophony and the chaos outside the New Delhi railway station, lies an island of serenity — a school much older than New Delhi, with a wholesale machine tools market on its West, a road leading to Rajiv Chowk (Connaught Place) on the East and colourful confusion of rickshaws,

Government 'fails to take up' Indian migrants' unpaid wages issue with other countries

By Rafeek Ravuther, Chandan Kumar, Dharmendra Kumar* The migrant workers were one of the most vulnerable sections during the pandemic. India experiences large-scale movement of migrants internally and internationally. After the outbreak of the pandemic, migrant workers continued to face injustice especially in getting wages in expedited manner. In the international context, India, the home of 9 million cross-border temporary labour migrants, carried out the largest repatriation exercise ‘Vande Bharat Mission’. Even though the Indian government addressed the immediate requirement of repatriation, it failed to understand and recognise their post-arrival grievances, like back wages, social protection etc. Recently many workers were deported from the middle- east region. Amidst the establishment of grievance mechanisms such as Consular Services Management System (MADAD) and helplines in Pravasi Bharatiya Sahayata Kendra (PBSK), the unresolved grievances remain high. The number of unresolv

Counterview

Search This Blog