NDA rule fails to reverse slide in filing of investment proposals

Ratio of conversion of proposals to implementation, however, improves in last two and half years

The "Make in India" programme of the Narendra Modi government seems to have no impact in reversing the declining trend in filing of new investment proposals across the country.

The total number of investment proposals which were 4336 in 2010, 3900 in 2011, 2828 in 2012 and 2387 in 2013, have dropped further to 1843 in 2014, 1998 in 2015 and 1412 in 2016 (upto July) despite the flagship programme of the NDA government to boost investment in the last two and half years.

Similarly, the combined value of investments proposed has also seen a downward trend from Rs 17.36 lakh crore in 2010 to Rs 15.39 lakh crore in 2011, Rs 5.67 lakh crore in 2012, Rs 5.30 lakh crore in 2013, Rs 4.05 crore in 2014, Rs 3.11 crore in 2015, and Rs 2.52 lakh crore in 2016 (upto July), according to the data mined from the web site of Department of Industrial Policy and Promotion.

"The filing of new project proposals have failed to pick up notwithstanding the investment boosting programmes undertaken by the incumbent government. This is because of continuing recession and demand slump in certain sectors such as metallurgical industry and also the regime of high interest rate," BS Pani, Chief Executive Officer, Span Resources Management Services, said.The investment proposals included those for the non-MSME category industry, direct industrial licences for items under compulsory licensing, and letter of intent issued for SSI items to non-SSI category industries.

However, the datas showed a consistent improvement in conversion of proposals to actual investment in last two and half years with the ratio standing at 19 per cent in 2014, 25 per cent in 2015 and 27 per cent in 2016 (upto July),

"This underlined faster implementation of projects and efforts to remove barriers in their way. Besides, the competition among states to create conducive atmosphere for industries has also lent its bit in improving proposals to implementation ratio," Pani added.

In 2016 (up to July), among the states, Karnataka has attracted maximum investment proposals worth Rs 1.09 lakh crore followed by Guajrat Rs 39750 crore and Maharashtra Rs 19503 crore. The investment intention reflected preference for metallurgical industries products, transportation industry and textiles.