India attracts Rs.53 lakh-cr funds in infra sector
The Dollar Business Bureau
India has attracted over all investments worth more than Rs.53 lakh crore in various categories of infrastructure sector. The categories include transport, health, education, recreational services, communication services, wholesale and retail trading, information, hotels and tourism, and storage and distribution services. Among these, transport services garnered the maximum share at 71% of the investments.
This information has been revealed by Associated Chambers of Commerce and Industry of India (ASSOCHAM) in its study ‘Analysis of infrastructure investment in India,’ in Hyderabad on Friday. Total investments attracted by infrastructure sector across India have increased at a compounded annual growth rate (CAGR) of 10% to reach Rs.53 lakh crore in 2015 from over Rs 32 lakh crore in 2010.
As per the study, Telangana has recorded 2% share in investments attracted by infrastructure sector from both public and private sources across India. It has registered third highest growth rate of over 36% after Chhattisgarh (44%) and Himachal Pradesh (38%) in investments made by the public sources in infrastructure sector across India.
However, in terms of investments made by the private sector in infrastructure, Telangana had seen a 5% negative growth, as the state needs to mobilise private sector capital that can be invested into infrastructure, the study said.
D S Rawat, Secretary General of ASSOCHAM said that investment projects attracted by state in transport services sector have registered highest cost escalation rate of about 89% and are facing delay of over 51 months as of 2015. The state needs to intensify focus on ease of doing business thereby adhering to the principle of ‘minimum government, maximum governance,’ to become an investment hub.
It is highly imperative for the Government of Telangana to perk up transportation, communication, water and energy networks across the state to promote accessibility, quality of infrastructure and attract domestic firms and global investors, he said.
ASSOCHAM has suggested various measures like reducing delay in creating businesses, obtaining approvals, enforcing contracts; providing sufficient legal protection for investors; ensuring more transparent and predictable government decision-making thereby minimising political and regulatory risks.