Odisha has emerged as the second best destination in attracting private investments after grabbing a share of about 10.7 per cent of the country’s private investments made as on June 2012 after Gujarat, according to a study by apex industry body Associated Chambers of Commerce and Industry of India (Assocham).
Out of the total outstanding investments of Rs 11.8 lakh crore in the state, private sector accounts for Rs 8.8 lakh crore (about 75 per cent of the overall investments), finds the sector specific analysis titled ‘Composition of Outstanding Investments Across States,’ carried out by the industry body.
The total outstanding private investments in the state includes Rs 7.75 lakh crore made by the domestic players and the balance by foreign entities.
“Flow of the private investments is decided by the attractiveness of investment opportunities as they are mostly driven by profitability considerations,” said D.S. Rawat, national secretary general, ASSOCHAM.
The analysis revealed that the private sector accounts for over 59 per cent (Rs 82.9 lakh crore) of the total outstanding investments of worth over Rs 140 lakh crore in the country.
Gujarat has emerged as the numero uno among the states by attracting private investments worth Rs 10.3 lakh crore with a share of 12.5 per cent. The total outstanding investments in the state stood at more than Rs 14.8 lakh crore as on June 2012.
Odisha is followed by Maharashtra (8.9 per cent), Andhra Pradesh (8.4 per cent) and Karnataka (7.2 per cent).Maharashtra has attracted private investments of more than Rs 7.35 lakh crore while Andhra Pradesh and Karnataka have pulled investments of about Rs 6.98 lakh crore and Rs 6.00 lakh crore respectively.
The share of private investments in the total live investments across these three states is less than the all-India average of over 59 per cent, points out the report.
Kerala, Himachal Pradesh, Jammu and Kashmir, Uttarakhand and Assam are lagging down in the list with a least share of less than in the total private sector investments.
Bureaucratic efficiency, infrastructure facilities, and ease of land acquisition influences the flow of private investments and tax concessions, product market conditions and exit policies are effective tools of private investment attraction, Rawat added.
