Skip to main content

New investments: Gujarat pushed to eighth position, even UP and Rajasthan overtake "India's growth engine"

By Rajiv Shah
It is not just in investments completed that Gujarat is lagging behind several states (click HERE to read). The situation has turned worse for new investments in the state, regarded as “growth engine of India”. Analysis carried out by a researcher with India’s premier independent research body Centre for Monitoring Indian Economy (CMIE) suggests that while Tamil Nadu tops the list of states with new investments in the quarter ended September 2014, Gujarat ranks eighth, with six other states performing better – Andhra Pradesh, Maharashtra, Karnataka, Uttar Pradesh, Rajasthan and Telangana.
The researcher, Pradnya Deo, has said, “Announcement of new investments in Gujarat was lower in the quarter at Rs 65.3 billion, in comparison to Rs 176.5 billion in June 2014”, adding, of this, investment worth Rs 28.5 billion was in the shipping transport infrastructure segment alone. Giving details, the researcher said, “Adani Ports & Special Economic Zone Ltd announced development of a fourth container terminal at the Mundra port at a cost of Rs. 21 billion”, and “Reliance Industries Ltd announced expansion of the Jamnagar Liquid Jetty Project, by setting up an additional berth” for Rs 7.5 billion.”
“Tamil Nadu topped the charts with new investments worth Rs 373.2 billion, highest in the past four years”, the researcher said, adding, important contributors were announcement by the Ministry of New & Renewable Energy (MNRE) to set up a 4,000 MW Tamil Nadu Solar Ultra Mega Power Project (UMPP) for Rs 260 billion, and the State Industries Promotion Corporation of Tamil Nadu Ltd (SIPCOT) announcement to set up a thermal power project at Tuticorin, with an investment of Rs. 32 billion.
Other “slew of industrial projects” announced by the Tamil Nadu government included “a desalination plant has been proposed at Kadaladi in the Ramanathapuram district, with Rs 15 billion investment and a capacity of 15 million litres per day (mld). Another Rs 72.7 billion investments were announced by the state government in the storage & distribution segment”, Deo said.
Then was the turn of Andhra Pradesh, which stood second with “substantial new investments” worth Rs 339 billion”. Of this, Rs 170.5 billion (nearly 50 per cent) was the solar energy sector. “Andhra Pradesh government signed a Memorandum of Understanding (MoU) with the National Thermal Power Corporation (NTPC) for setting up a 1,000 MW solar park at Kadiri in Anantapur district at Rs 70 billion. It signed a MoU with NVVNL (NTPC Vidyut Vyapar Nigam Ltd) as well, for 1,000 MW Kurnool Solar Project at Rs. 65 billion. The Andhra Pradesh Power Generation Corp Ltd (APGENCO) has also announced a 500 mw Kadapa Solar Power Project costing Rs 32.5 billion”, the researcher noted.
As for Maharashtra, Deo said, it “stood third with new investments worth Rs 267.6 billion. This included announcement of a dry port at Aurangabad by Jawaharlal Nehru Port Trust (JNPT), with an investment of Rs. 150 billion. JNPT has also announced to develop a dry port at Wardha. Goods from these two dry ports shall be sent to the JNPT port for further exports by rail network.”
Karnataka came fourth -- it saw new investments worth Rs 126.9 billion, mainly in the steel industry. “Kalyani Steels has planned to double the capacity of its carbon alloy steel plant at Koppal to 1.4 million tonnes, at a cost of Rs. 55.3 billion. While, Sandur Manganese & Iron Ore Ltd received a Terms of Reference (ToR) approval from the Expert Appraisal Committee (EAC) for expansion of its existing ferro alloy plant capacity at Hanumanhalli in Hospet district”, Deo said.
The fifth rank was of Uttar Pradesh, which saw “the highest amount of new investments in the quarter in the past four years, at Rs. 126.1 billion”, the researcher said. “This includes approval of the Rs. 52.8 billion Meja Phase II Thermal Power Project by the state government, entailing two units of 660 mw each. Another Rs. 70.6 billion investment in Uttar Pradesh was announced in the power sector.”
“The sixth rank was of Rajasthan, which announced new investments worth Rs. 125.9 billion, mainly in the power sector. On September 1, 2014, Adani Power announced to expand the capacity at its Kawai Coal Based Thermal Plant by 1,600 MW (two units of 800 mw each) to 2,920 MW, at a cost of Rs 91 billion”, Deo said.
And, the seventh position in new investments was of Telangana, at Rs 107.4 billion. “Bharat Heavy Electrical Ltd (BHEL) is in talks with the Telangana government for engineering, procurement and construction (EPC) order for the Manuguru Coal Based Thermal Power Project. The Rs 43.2 billion project entails four units of 270 mw each. Southern Power Distribution Corporation of Telangana Ltd (SPDCT) has also proposed to set up a 500 mw solar plant at Adilabad, with an investment of Rs. 32.5 billion”, the researcher said.

Comments

Anonymous said…
almost 70-80% investment is in power sector and in gujarat its already done a long ago :)

TRENDING

132 Gujarat citizens, including IIM-A faculty, others declare solidarity with Kashmiris

Counterview Desk
A week after it was floated, 132 activists, academics, students, artists and other concerned citizens of Gujarat, backed by 118 living in different parts of India and the world, have signed a "solidarity letter" supporting the people of Jammu and Kashmir (J&K), who, it claims, have been silenced and held captive in their own land. The signatories include faculty members and scholars of the prestigious Indian Institute of Management-Ahmedabad (IIM-A).

Bharat Ratna nominee ‘joined hands’ with British masters to 'crush' Quit India

By Shamsul Islam*
The Quit India Movement (QIM), also known as ‘August Kranti' (August Revolution), was a nation-wide Civil Disobedience Movement for which a call was given on August 7, 1942 by the Bombay session of the All-India Congress Committee. It was to begin on August 9 as per Gandhi's call to 'Do or Die' in his Quit India speech delivered in Bombay at the Gowalia Tank Maidan on August 8. Since then August 9 is celebrated as August Kranti Divas.

Gujarat's incomplete canals: Narmada dam filled up, yet benefits 'won't reach' farmers

By Our Representative
Even as the Gujarat government is making all out efforts to fill up the Sardar Sarovar dam on Narmada river up to the full reservoir level (FRL), a senior farmer rights leader has said the huge reservoir, as of today, remains a “mirage for the farmers of Gujarat”.
In a statement, Sagar Rabari of the Khedut Ekta Manch (KEM), has said that though the dam’s reservoir is being filled up, the canal network remains complete. Quoting latest government figures, he says, meanwhile, the command area of the dam has been reduced from 18,45,000 hectares (ha) to 17,92,000 ha.
“According to the website of the Sardar Sarovar Narmada Nigam Ltd, which was last updated on Friday, while the main canal, of 458 km long, has been completed, 144 km of ranch canals out of the proposed length of 2731 km remain incomplete.
Then, as against the targeted 4,569 km distributaries, 4,347 km have been constructed, suggesting work for 222 km is still pending. And of the 15,670 km of minor canal…

Ceramic worker dies: 20,000 workers in Thangadh, Gujarat, 'risk' deadly silicosis

By Our Representative
Even as the country was busy preparing for the Janmashtami festival on Saturday, Hareshbhai, a 46-year-old ceramic worker from suffering from the fatal lung disease silicosis, passed away. He worked in a ceramic unit in Thangadh in Surendranagar district of Gujarat from 2000 to 2016.
Hareshbhai was diagnosed with the disease by the GCS Medical College, Naroda Road, Ahmedabad in 2014. He was found to be suffering from progressive massive fibrosis. He is left behind by his wife Rekha sister and two sons Deepak (18) and Umesh (12),
The death of Hareshbhai, says Jagdish Patel of the health rights group Peoples Training and Research Centre (PTRC), suggests that silicosis, an occupational disease, can be prevented but not cured, and the Factory Act has sufficient provisions to prevent this.
According to Patel, the pottery industry in the industrial town of Thangadh has evolved for a long time and locals as well as migrant workers are employed here. There are abou…

Cess for Gujarat construction workers: Spending less than 10%; no 'direct help' to beneficiaries

By Our Representative
While the Gujarat government’s Building and Other Construction Workers Welfare Board, set up in 2004, as of March 31, 2019, has collected a total cess of Rs 2,097.62 crore from the the builders, it has spent less than 10% -- Rs 197.17 crore. And, as on May 31, 2019, the total cess collection has reached Rs 2,583.16 crore, said a statement issued by Bandhkam Majur Sagathan general secretary Vipul Pandya.
Pointing out that just about 6.5 lakh out of 20 lakh workers have been registered under the board, Pandya said, vis-à-vis other states, Gujarat ranks No 13th in the amount spent on the welfare of the construction workers, while 11th in the amount collected.
And while the builders are obliged to pay just about 1% of the total cost of their project, the calculation of the cess is flawed: It is Rs 3,000 per square yard; accordingly, Rs 30 per square yard is collected. “Had the cess been collected on the real construction cost, it would have been at least Rs 7,000 cr…