UP needs massive pvt investment

Uttar Pradesh, which has witnessed private investment to the tune of Rs 22,000 crore in the last 3 years and expects total investments of almost Rs 1,50,000 crore in the public -private-partnership (PPP) projects, still needs massive private investment to keep pace with the country’s growth rate.

Although, the state government has been making fast amends to boost private investment by introducing the single-window clearance system, organising investors’ meet and providing sops to the industry, the results are yet to match the expectations.

The investment figures say it all. The actual private investment during the current 3 years regime of Mayawati (2007-10) has fallen to Rs 22,000 crore, from over Rs 25,000 crore during the previous 3 years (2004-07).

Acoording to the Plan paper, UP needs public and private investments of about Rs 2,36,000 crore and Rs 5,75,000 crore respectively during the current 11 th Five Year Plan (2007-12), which aggregates Rs 8,11,000.

However, the current rate of investment is estimated at 20 per cent of the Gross State Domestic Product (GSDP) against the national average of 35 per cent.

It means the present level of investment in the state is around Rs 60,000 crore given the GSDP level of Rs 3,12,000 crore. If the GSDP of UP has to touch 10 per cent against the current growth of 5 odd per cent, the investment level has to be doubled over the current Plan and taken to the level of Rs 1,20,000 crore annually, which is still not being met.

During 2009-10, UP had processed Industrial Entrepreneurs Memorandum (IEM) of only Rs 10,000 for private investment in various sectors, including cement, energy, leather, paper, metal, ceramics, electrical, food, IT, transport, textile etc, which amply reveals low level of investment proposals.