Single window system to execute 62% investment proposals: ASSOCHAM

The Associated Chambers of Commerce and Industry (ASSOCHAM) has come up with a study which point out that about 62 per cent of the investments in the state of Gujarat remain in the announcement stage while about one third are actually available to it.

Stressing on the need to speeden up work on projects that are yet to materialise, ASSOCHAM president Swati Piramal said that there is a need to put a single window clearance system in place to help timely execution of investment projects to the tune of Rs 12 lakh crore which have been announced.

A paper on Gujarat-- "Sustaining the Growth Momentum in Gujarat" which was released here today by ASSOCHAM says that that the investment projects numbering 1402 worth of Rs 11.41 lakh crore have been announced for Gujarat up to September 2009 of which 42.5 per cent share has gone to power sector while manufacturing sector has attracted 24.8 per cent followed by 18.8 per cent by service sector.

"The completed investment projects in second quarter of current fiscal number 24 with investment worth Rs 6217 crore. This accounts for 0.5 per cent of ongoing investments and shows the need for faster completion," said a study paper released by Piramal.

Dr Piramal however pointed out that Gujarat administration has been successful in propelling its economy into high growth trajectory. An appropriate policy framework in put in place and suitably amended from time to time for this purpose.

According to ASSOCHAM officials, Gujarat has identified six industrial nodes along the 565 kms stretch of Delhi Mumbai Industrial Corridor (DMIC). This presents a major opportunity as well as challenge for the state. "While the opportunity is in the form of leveraging these projects to benefit the state, the challenge lies in the form of addressing the equity concerns associated with this project," the officials said.

ASSOCHAM has also suggested the state level development finance institutes like the erstwhile state industrial development corporations to be revived for the benefit of SMEs.