TN attracts highest investment in the irrigation sector
The Dollar Business Bureau
Tamil Nadu has been ranked the highest in terms of growth in live investments attracted by the irrigation sector, witnessing a compounded annual growth rate (CAGR) of 32 percent during the period of 2004-05 and 2014-15, revealed the trade body ASSOCHAM.
In a statement issued on Tuesday, ASSOCHAM said that investments attracted by Tamil Nadu in the irrigation sector, from private as well as public sources have jumped from a mere Rs.151 crore in 2004-05 to more than Rs.2,400 crore in 2014-15. The share of the state in this regard has also risen from 0.1 percent to 0.4 percent, respectively.
Around 57.5 percent investments received by the state in the irrigation sector are currently under the implementation stage, facing a delay of around 39 months and their costs have gone up by 24 percent of their real cost.
The study compiled by ASSOCHAM Economic Research Bureau (AERB) pointed out that investments in the irrigation sector in India have surged at 11 percent CAGR between 2004-05 and 2014-15. They have increased two fold to Rs.5.5 lakh crore from just Rs.2 lakh crore.
In 2014-15, almost 248 investment projects worth over Rs.4.7 lakh crore were in different stages of implementation. The private sector has not shown any interest in developing the irrigation sector, but almost 98 percent of investments attracted by the irrigation sector in India have come from the public players.
There is a need to improve the current irrigation policy and strategy to further its contribution to agriculture and economic growth. This will boost employment which in turn could lead to production optimisation.
ASSOCHAM suggested that all state governments should create a local authority to take care of all projects in irrigation and to ensure their completion within the stipulated time.
“In addition, the Indian government should bring changes in policy to enhance efficiency, improve transparency, accountability and willingness to encourage development of irrigation. The aim should be to make sure that irrigation services would be more resource-efficient, responsive to farmer needs and equitable,” the trade body said.
