Skip to main content

Gujarat ranks fifth in investment completion for quarter ending Sept 2014, lowest in four years, says CMIE

By Our Representative
Latest analysis of the data collected by the Centre for Monitoring Economy (CMIE), India’s premier independent economic research body, has busted the myth that Gujarat is the "growth engine" of India, as claimed by Prime Minister Narendra Modi. Even as releasing facts suggesting that there has been a “steep decline in commissioning of projects” in India, lowest since December 2006, CMIE researcher Pradnya Deo has said, Gujarat is "in the fifth spot with investment completion at Rs 18.1 billion", which is “the lowest amount of investments completed in Gujarat in the past four years.” The researcher added, “Of these investments, Rs. 14.1 billion “belonged to the manufacturing sector.”
Deo said, while “completion of investment projects in India was substantially low in the September 2014 quarter at Rs 288 billion, showing a year-on-year decline of 54.8 per cent”, Karnataka saw “maximum investment completion in the September 2014 quarter at Rs. 81.3 billion, highest in the past six quarters.” The Rs 64 billion Mangalore Aromatic Complex Project was “mainly responsible for this”, he said, adding, the ONGC Mangalore Petrochemicals Ltd “completed this project on 16 September 2014. It has a capacity of producing 0.9 million tonnes per annum (mtpa) of paraxylene and 0.3 mtpa of benzene.”
Deo further said, “Maharashtra stood second for the second consecutive quarter with completion of investments worth Rs 57.7 billion. Over 50 per cent of these investments were in the manufacturing sector. Another Rs. 25.8 billion investment was completed in the services sector, of which Rs 17.3 billion belonged to the transport segment. Road infrastructure in Mumbai got a major boost with completion of the Rs. 17 billion Sion Panvel Expressway. The expressway covers a stretch of 23.09 kms and is expected to reduce travel time by 30 minutes.”
Then came Jharkhand, which “saw investments worth Rs 28.6 billion completed in the September 2014 quarter, as opposed to no investment completion in the September 2013 quarter. Completion of Tata Group’s Continuous Annealing & Processing Line Facility at Jamshedpur worth Rs. 27.5 billion was primarily responsible for this. The project has a capacity to produce 0.6 million tonnes per annum (mtpa) of high quality cold rolled sheets.”
On the fourth position stood Telangana, with “Rs 20.3 billion, in comparison to Rs. 6.2 billion in September 2013 quarter. The major project to see light was Procter & Gamble Home Products Ltd’s (P&G) Kothur Laundry, Personal and Babycare Products Project worth Rs. 9 billion, set up at Mahbubnagar. The amount of investments completed in Telangana was also higher than those in Andhra Pradesh, which saw completion of investments worth Rs. 14.2 billion in the quarter.”
In all, the researcher said, “Stalled investments in India stood at Rs. 1,390 billion in the September 2014 quarter, 16.8 per cent lower than the year ago level. Jharkhand saw maximum stalling of investments at Rs. 361 billion, primarily because of land acquisition problems.” The projects abandoned due to land acquisition issues include:
  • Steel Authority of India Ltd’s (SAIL) Rs. 250 billion Sindri Integrated Greenfield Steel Plant Project with a 5.6 mtpa capacity.
  • SAIL also abandoned its Rs. 50 billion Sindri Power Project with 1,000 mw capacity.
  • SAIL’s Sindri Urea Project, which involved setting up a fertiliser plant having 1.15 million tonnes per annum (mtpa) capacity.
Meanwhile, another CMIE researcher, Suparna Chattopadhyay, analyzing the steep decline in commissioning of projects, said, “Projects worth Rs 318 billion were commissioned during the quarter ended September 2014, registering a sharp decline. The value of investment in these 211 projects completed was lowest in the past 32 quarters, i.e since December 2006. Estimates for project completion are expected to go up with information coming in with a lag, but chances are less that the value will go up significantly.”

Comments

TRENDING

Whistle-blowing IPS officer Sanjiv Bhatt's wife suspects foul play after truck hits her car

By Nachiketa Desai*
Paranoia has seized Shweta Bhatt, wife of suspended Indian Police Service (IPS) officer Sanjiv Bhatt, after the car she was driving was rammed in broad day light. According to Shweta Bhatt, it was beacon light-flashing truck without registration number plate. The incident took place on January 7, just a day ahead of the Gujarat High Court was scheduled to take up the bail application of Sanjiv Bhatt, arrested last year for "involvement" in a 23-year-old case.

Call to support IIM-Bangalore professor, censured for seeking action against Uniliver

Counterview Desk
Sections of the Indian Institute of Managements (IIMs) across India have strongly reacted to the decision to censure Dr Deepak Malghan, a faulty at IIM-Bangalore. Prabhir Vishnu Poruthiyil, who is faculty at IIM-Tiruchirapalli, has sought wider solidarity with Dr Malghan, saying, "The administration has censured Deepak for merely suggesting a meaningful action against Hindustan Unilever for their abysmal environmental record" by “disinviting” it for campus placement.

99% MGNREGA funds "exhausted", Govt of India makes no additional sanctions: Study

Counterview Desk
A letter, addressed to Prime Minister Narendra Modi, and prepared by senior activists led by Aruna Roy on behalf of the Peoples’ Action for Employment Guarantee (PAEG), and signed, among others, by 80 members of Parliament, has regretted that, despite repeated public statements by his government promising employment and job creation that will boost the country’s growth, the country’s only employment guarantee programme, Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), “is being systematically undermined.”

Morari Bapu, who has installed new statues of Ram, Laxman, Hanuman without weapons

By Sandeep Pandey*
A saint is one who can give some inner peace by his/her voice. This will happen only when s(he) will talk about love and harmony. Morari Bapu is one saint who has been conveying the message of love, peace, harmony, fraternity, etc. Today when a number of saffron clad figures with aggressive posture, spewing venom, fanning hatred to polarise voters are at the forefront of politics of Hindutva it is a relief to see Morari Bapu in a different mould.

Nuclear reactors sought from French giant "not safe": Letter to Modi on Jaitapur project

Counterview Desk
Amidst reports that the French nuclear giant EDF has submitted a “techno-commercial offer” for the world’s largest nuclear power park proposed in Maharashtra’s Jaitapur nuclear power park in Jaitapur on the Maharashtra coast, Dr EAS Sarma, India’s former Union Secretary in the Minister of Power, and an eminent voice in the civil society, has written an open letter to Prime Minister Narendra Modi, who also heads Department of Atomic Energy (DAE),  protesting the move.

World Bank clarifies: Its 26th rank to India not for universal access to power but for ease of doing business

By Our Representative
In a major embarrassment to the Government of India, the World Bank has reportedly clarified that it has not ranked India 26th out of 130 countries for providing power to its population. The top international banker’s clarification comes following Union Power Minister Piyush Goyal’s claim that India has “improved to 26 position from 99” in access to electricity in just one year.

Kerala land being acquired using "draconian, anti-people" National Highway Act, 1956

Counterview Desk
In a letter Chief Minister of Kerala Pinarayi Vijayan, senior activists and politicians have insisted that the Kerala government should not agree to "inhuman displacement and buid-operate-transfer (BOT) Toll system", imposed by the Government of India and the National Highway Authority of India, for widening the current National Highway (NH) 66.

Kaiga NPP expansion: Karnataka to get just 400 MW, but lose thick forest, fresh water

Counterview Desk
In an open letter to the chairman and members of the Atomic energy Commission (AEC) on the issue of Kaiga nuclear power plant (NPP) expansion plan in Karnataka, Shankar Sharma, well-known power policy analyst, has argued that that in case of expansion, the site will face “exponential increase in radiation emission risks”, underlining, “Nuclear safety experts identify such a scenario as enhanced risk for NPPs with multiple reactors and shared technical facilities."
Sharma says the questions that also be asked whether Karnataka should lose more than 54 hectares of thick forests and about 152,304 cubic meters of fresh water per day from Kali river for a meager benefit of 400 MW from the Kaiga NPP, for which “there are many benign alternative options available for the state at much lower overall costs to the state.”
Text of the letter: This has reference to the public hearing under the Environmental Impact Assessment (EIA) Rule 2006 of Ministry of Environment, Fore…

Uttarakhand High Court: Biodiversity boards can impose fees on Ramdev's Divya Pharmacy

By Mridhu Tandon
In a significant decision, the Uttarakhand High Court on December 21, 2018 has dismissed the writ petition filed by Divya Pharmacy founded by Baba Ramdev and Acharya Balakrishnan, challenging the demand of the Uttarakhand Biodiversity Board (UBB) imposing fees under the provisions of the Fair and Equitable Benefit Sharing (FEBS).

Modi becoming Prime Minister now appears to be an "accident" to the people of India

By Sandeep Pandey*
Anupam Kher's film 'Accidental Prime Minister' has targeted Dr Manmohan Singh who served for two terms and may be again acceptable for the job if his party regains power. But his tormentor Narendra Modi seems to be out of breath even before his first term is over. Disillusionment with him is so widespread and deep that people of India may not bear with him for another term. As the general elections approach again the difference between the two needs to be examined.