ASSOCHAM suggests Yogi govt to set up committee for timely implementation of 1050 projects

Lucknow, Oct 5: The Associated Chambers of Commerce and Industry of India(Assocham) has suggested the Uttar Pradesh government to set up a Special Monitoring Committee to ensure timely implementation of 1050 projects worth about Rs 9 lakh crore. The projects have been pending for past more than seven years. It would be better that Chief Minister Yogi Adityanath headed the committee so that decisions could be taken immediately for the completion of these projects, the apex industry body said. “Even if 50 per cent projects get implemented, it will help UP generate around one lakh direct and 1,50,000 indirect job opportunities,” noted the just-concluded Assocham study titled, ‘Uttar Pradesh: Economic Growth & Investment Performance Analysis.’ The study was released by ASSOCHAM’s national secretary general D.S. Rawat and senior managing committee member of the chamber Babu Lal Jain at a press meet here on Thursday. “The present UP government under the able guidance and leadership of chief minister Yogi Adityanath should take up the implementation of projects on war footing as that would further serve as an incentive for industry and help the state attract private investors in larger numbers thereby leading to holistic growth and development of India’s largest state,” said Mr Rawat. “The state government must ensure speedy implementation of projects by addressing environmental, land acquisition and other related issues proactively to balance the interests of all stakeholders,” he added. As per the report, as on March 31,2017, around 606 projects worth over Rs 6 lakh crore are under implementation in UP. “Over the years, under implementation rate has increased sharply from its lowest level of 52.4 per cent in 2011-12 to 70.2 per cent in 2016-17. If we compare this with all-India average under implementation rate, the UP’s under implementation rate is much worse during most of the period except 2011-12," it said. Sector-wise, irrigation has most projects that are under-implementation (99 per cent), followed by mining (91.5 per cent), construction and real estate (90 per cent), electricity (68 per cent) and non-financial services (63 per cent) that are amid top five sectors in this regard. A higher under-implementation rate implies that most of the projects or outstanding investments are under process and are yet not completed. Therefore a higher under implementation rate does not augur well as actual benefits of an investment are only derived upon completion. Projects with huge investments that are under different stages of implementation have been a major concern for policymakers across India as governments both at the centre and the states have been taking various initiatives to reduce such investment projects both in terms of numbers and values. The Assocham report said UP accounts for a share of about five per cent in total live investments worth over Rs 177 lakh crore attracted from domestic and global investors representing both public and private sectors across India, noted the study prepared by ASSOCHAM’s Economic Research Bureau (AERB). Non-financial services account for lion’s share of about 39 per cent in the total live investments worth about Rs 9 lakh crore attracted by UP as on March 2017. Electricity (27 per cent), construction and real estate (22.5 per cent) and manufacturing (about 8 per cent) are other sectors with significant share in this regard. On comparing this with sector-wise investment figures of 2011-12, the data indicates that there is a significant change in investment pattern as earlier electricity (over 40 per cent) was the leading sector in terms of share followed by non-financial services (about 29 per cent), construction and real estate (about 21 per cent), manufacturing (about 8 per cent) and irrigation. Non-financial services sector attracted investments worth over Rs three lakh crore as of March 2017 which increased from Rs 1.7 lakh crore as of March 2012. Transport services sector accounted for highest share of over 83 per cent in this regard. Manufacturing sector as a whole attracted live investments worth over Rs 68,000 crore as of March 2017 which increased from over Rs 47,000 crore in March 2012. Within manufacturing sector, chemicals and chemical products accounted for over half (54 per cent) of the total investments attracted by the sector followed by consumer goods (16 per cent), food and agro-based products (11 per cent) and others. So far as economic performance is concerned, UP is country's fourth largest state in terms of economic size with only Maharashtra, Tamil Nadu and Gujarat being ahead of it. While the state’s economic contribution declined from 8.3 per cent in 2012 to 7.9 per cent in 2015, it recorded a stable economic growth till 2017. Besides, while the state’s economic growth remained behind that of all-India economic growth during 2012-2016, it surpassed India’s economic growth in 2017. Ensuring effective power supply and luring more private players to invest in electricity sector; adopting a cluster-based development approach; promoting job creating industries like food processing, tourism, MSMEs (micro, small and medium enterprises) and improving co-ordination among government departments are certain key suggestions given by Assocham to the state government to enable UP emerge as a front-runner state across India. UNI