'Implementation delay pushes project costs in Punjab by 47%'

The delay in implementation of projects in Punjab has led to a cost overrun to the tune of Rs 57,000 crore, according to a report by industry body Assocham.
"Land acquisition delays, fund constraints, delay in environmental and other clearances together with law and order problems are certain key factors that have resulted in serious cost overruns to the tune of a whopping about Rs 57,000 crore.
"It is about 47 per cent of the actual cost of over Rs 1.21 lakh crore of investment projects attracted by Punjab from various public and private sources thereby further affecting their implementation in the state," the Assocham report said.

As a result, there has been a massive fall in growth rate of outstanding investment projects from about 78 per cent in 2008-09 to just about 4 per cent in 2013-14, attracted from various public and private sources across industries and sectors in Punjab, the report said.
These findings have emerged out of the Assocham's study titled 'Impact of delay in investment implementation in Punjab'.
"New investments in Punjab had reached its peak of over Rs 33,000 crore in 2008-09 and the figure has now fallen to a meagre sum of Rs 4,600 crore," it said.

"Punjab paints a grim picture in terms of implementation of investment projects as about 70 per cent of projects remained non-starter as of 2013-14 as against about 58 per cent across India," said D S Rawat, national secretary general of Assocham.

"Majority of investment projects that are under implementation (non-starter) in Punjab are in services (39 per cent) and electricity sectors (38 per cent)," said Rawat.
"Several departments of the state government play a crucial role in implementation of investment projects as land acquisition, shifting of utilities and others are taken at the state government's level, besides geographical features of the state may also affect the project time and costs," he said.
Amritsar-Patiala region has emerged on top with over 41 per cent share in total investments followed by Gurudaspur-Rupnagar (20 per cent), Firozpur-Sangrur (20 per cent), while rest of the multiple regions of Punjab account for the remaining 19 per cent of investments.