Rs 84,788-Crore Projects Stalled Last Year
Seventy-seven projects, involving investments worth Rs 84,788 crore, were delayed, postponed or dropped altogether between August 1997 and July 1998, according to the latest survey by the Centre for Monitoring Indian Economy's Capex Service.
The Capex Service collates information on capital expenditure in various sectors. Its latest report clearly indicates that total investment in the economy has slowed down.
At the end of July 1997, total investments in various projects _ in different stages of implementation _ amounted to Rs 12.57 lakh crore. A year later, the amount had dwindled to Rs 12.29 lakh crore.
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The projects that have been stalled include 16 power projects with an envisaged aggregate capacity of 4,833 mw and a total investment of Rs 16,989 crore. The Bihar State Electricity Board's Nabinagar project, CESC's Korba West Thermal project and NTPC's Farakka thermal power project are among the major power projects which have failed to take off.
The chemicals sector has suffered the worst in terms of deferment of projects. Seventeen projects, involving investment worth Rs 24,756 crore, have been stalled. These include four refineries _ Lohagara, Kakinada, Pennar and Aban Loyd _ worth a combined Rs 16,310 crore. Two fertiliser projects, a PTA and a paraxylene project by Bombay Dyeing and a petrochemicals project by ONGC were also stalled.
Twelve cement projects, envisaging total additional capacity of around 13 million tonne per annum and total investment of Rs 3,680 crore have been stalled.
Tisco and L&T's steel projects at Gopalpur _ the two largest steel projects on hand in India _ have been deferred. This has severely affected Orissa's relative position in the ranking of states in term of investments attracted.
Orissa had topped the list of states in terms of total investments envisaged in CMIE's survey in February 1998. It has now slipped to the fifth position.
On the other hand, Gujarat has moved to the first position from its earlier position at number three. Maharashtra continues to enjoy the number two slot.