Telangana State attracts 3.3 lakh cr investments
Telangana State has attracted huge investments worth about Rs 3.3 lakh crore till June end, a strategy paper prepared by the Associated Chambers of Commerce and Industry of India (Assocham) has revealed. The strategy paper released in Hyderabad on Thursday, said construction and real estate (28 per cent), services (other than financial – 23 per cent), electricity (19 per cent), irrigation (16.5 per cent) and manufacturing (12 per cent) sectors together accounting for almost 99 per cent of these investments while mining is a minor investment destination accounting for the remaining one per cent share.
“Ownership-wise, private sector accounts for almost 59 per cent of the total investments attracted by Telangana state with domestic private sector garnering lion’s share of 56.4 per cent and while private foreign investors account for the remaining share of about 2.4 per cent.” While the State government accounts for almost 29 per cent in the total investments attracted by Telangana, the Central government had a share of about 12 per cent and the local bodies account for the remaining share. “Telangana needs to focus on a strategy of using the public investment exclusively for development of primary sector and private investment for industry and services sectors,” says, D S Rawat, general secretary, Assocham.
“In line with this strategy, the state needs to restrict itself to the role of regulation while the private sector develops and manages the industry and services sectors.” However, projects with about 30 per cent share in total investments attracted by Telangana are facing delay in implementation owing to a plethora of reasons like land acquisition delays, fund constraints, delay in environmental and other clearances along with law and order problems.
“While projects with about 70 per cent share in investments are being implemented, over 20 per cent investment projects are in announcement stage, while implementation of about seven per cent projects have been stalled and there is no information about projects with about three per cent share in total investments,” highlighted the Assocham’s strategy paper.
Source from: Metro India