Several stalled projects has touched an all-time high under NDA Fovernment with 893 ventures worth Rs 11.36 trillion held up due to lack of promoter interest, unfavourable market conditions and lack of funds.
What may be alarming for government is the drop in new investments.
According to ‘The Economic Times’, there were 766 stalled projects in March 2014, UPA government was in power.
Number of stalled projects increased to 816 in 2014-15 and 893 by the end of 2015-16.
Centre for Monitoring Indian Economy data shows lack of promoter interest as the No. 1 reason for halting projects.
New investments captured declined 25 percent to Rs 8 trillion in 2015-16 fromRs 10.64 trillion in 2014-15. Number of projects initiated, investments flowing in and works being revived declined steadily in 2015-16.
Data also shows projects being initiated are at an all-time low.
Even after 'Make in India' and 'Stand Up India' initiatives of the government, new investments are just not coming in adequately," said Mahesh Vyas, managing director of CMIE.
Data on stalled projects used to be included in the Economic Surveys since 2012-13, but Centre decided to skip the alarming statistics this time.
This information was mentioned in 2012-13 survey and in 2013-14 editions.
It was part of chapter titled ‘The Investment Climate: Stalled Projects, Debt Overhang and the Equity Puzzle’ in the 2014-15 survey, which said mining, manufacturing and electricity had the highest stalling rates in the last few quarters among all sectors, while shipping, road and air transport were the other big contributors in infrastructure.