Investment Attraction in Punjab

75% undertakings remain non-starter; Projects' expense pushed by Rs 41K crore

Punjab has neglected to profit by its center advantages in this manner prompting a troubling financial development situation considering that new ventures pulled in by the state enlisted a fall of more than 63 for every penny year-on-year (Y-o-Y) i.e. from over Rs 7,200 crore in 2013-14 to pretty much Rs 2,600 crore in 2014-15, prominent a simply finished up study by zenith industry body ASSOCHAM.

Be that as it may, new speculations pulled in by states crosswise over India have expanded by more than 44 for each penny Y-o-Y i.e. from about Rs six lakh crore in 2013-14 to over Rs 10 lakh crore in 2014-15, pointed out the study titled 'Effect of deferral in venture usage in Punjab,' led by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

Regardless of bragging of a powerful framework base, Punjab has neglected to bait financial specialists throughout the years apparently as the new speculations pulled in by the state came to its top level of Rs 36,650 crore in 2007-08 which had declined to a pitiful Rs 2,600 crore in 2014-15 along these lines enlisting a fall of around 93 for every penny, said Mr D.S. Rawat, national secretary general of ASSOCHAM while discharging the chamber's study.

Punjab had pulled in aggregate extraordinary ventures worth simply over Rs two lakh crore starting 2014-15, with administrations part representing 39 for every penny offer took after by power (31 for each penny), development and land (23.5 for every penny), fabricating (six for each penny) and watering system (one for every penny).

Gurdaspur-Rupnagar is the most looked for after area for financial specialists in Punjab as the district represented around 33 for each penny of the aggregate extraordinary speculations pulled in by the state starting 2014-15 took after by Amritsar-Patiala (27 for every penny), Firozpur-Sangrur (20 for every penny) and other multi-areas (20 for each penny).

302 ventures with speculations worth over Rs 1.6 lakh crore i.e. 75 for each penny of the aggregate remarkable ventures pulled in by Punjab starting 2014-15 have remained non-starter with administrations part representing 40 for every penny offer of these took after by development and land segment (30 for every penny), power (26 for each penny), producing (three for every penny) and watering system (one for each penny).


Out of the 302 ventures that have remained non-starter, around 140 have either reported cost or time overwhelms.

Poor execution of 52 venture activities has pushed up their expenses by over Rs 41,900 crore i.e. just about 45 for each penny of their real cost of over Rs 93,390 crore, highlighted the study arranged by the ASSOCHAM Economic Research Bureau (AERB).

While 60 activities have reported time overwhelmed running between 1-157 months.

Ventures in non-budgetary administrations division have earned most elevated offer of around 50 for each penny in tasks reporting expense heightening took after by power (39 for each penny), development and land (six for each penny), producing (three for each penny) and watering system (two for every penny).

While ventures in development and land division have reported greatest expense heightening to the tune of 72 for each penny of their genuine expense took after by non-monetary administrations (67 for each penny), watering system (64 for every penny), fabricating (42 for every penny) and power (40 for each penny).

Possession insightful, private-segment claimed tasks have most noteworthy offer of around 69 for each penny altogether undertakings that have reported expense acceleration while state government-possessed activities represented 28.5 for every penny and Central government claimed ventures represented the remaining offer.

Private-division possessed ventures have additionally reported most astounding expense acceleration of 70 for each penny took after by state government claimed undertakings (35 for every penny) and Central government claimed tasks (28 for each penny).

Punjab's monetary execution throughout the years:

A sharp decelerating pattern has been watched vis-vis development execution of Punjab's economy as the state's general monetary development had declined from more than 10.2 for each penny in 2006-07 to five for every penny in 2014-15, highlighted the ASSOCHAM study.

Punjab's commitment to Indian economy has likewise declined from 3.3 for each penny in 2004-05 to three for each penny in 2013-14 and has stayed at the same level over the span of recent years.


However, horticulture is pillar of Punjab's economy, however its commitment in the state's gross state household item (GSDP) has declined altogether from the level of around 33 for every penny in 2004-05 to a little more than 20 for each penny in 2014-15 attributable to components like monoculture of wheat-paddy crop turn, stagnation in yield of main harvests, declining ranch wages, country obligation, normal asset requirement, debasement of soil wellbeing and falling groundwater table which has made the segment less profitable.

Accordingly, ASSOCHAM study has recommended for more prominent spotlight on innovative work, crop expansion and provincial non-cultivate exercises to restore the quick winding down greatness of agribusiness area.

Indeed, even mechanical part has enrolled sharp decrease in development execution i.e. from top level of 21 for every penny in 2006-07 to only two for every penny in 2014-15.

In spite of the fact that administrations part has been the biggest patron to Punjab's GSDP consequently representing around 53 for every penny share yet development every year in this division has additionally decelerated from its crest level of around 12 for each penny in 2011-12 it had dropped to nine for every penny in 2013-14 yet got somewhat to achieve 10 for each penny in 2014-15.

Punjab holds adequate potential for development and extension of administrations area, all things considered policymakers ought to expect to grow fare related administrations to era extra financial action and more business open doors in the state, proposed the ASSOCHAM study.

Source : business-standard.com