In 113 projects Rs 3.3 lakh crore invested
Nearly 90% of the investments in large projects, which were held up and have now been cleared, have materialized, suggests the initial numbers flowing into the cabinet secretariat. An analysis by the Project Monitoring Group (PMG) housed in the cabinet secretariat of the 113 projects cleared shows that Rs 3.3 lakh crore has already been invested against investment intention of Rs 3.7 lakh crore.
Anil Swarup, who heads the PMG, had said last week that with investment of close to Rs 5.3 lakh crore 152 mega projects have been cleared so far. The group, which was set up to work with other ministries to remove last-mile hurdles, has received data for 113 projects, while information on the others is being collected. Involving total investment of close to Rs 20 lakh crore that have been held up for want of approvals, the PMG has received 438 proposals from projects worth Rs 1,000 crore or above.
Government officials said, in a majority of cases the project was held up due to a one or two clearances that have now been obtained while there are several projects where investment is yet to begin. In fact in many cases, a part of the project went on stream within weeks. “In several cases, the investment is more than what was initially planned, signifying that there may be an element of cost overrun,” the officials added.
Whatsoever is the reason, promoters are expected to get relieved of financial pressure with cash flowing into the held-up projects as they can now repay bank loans and plan new investments and restore the demand for machinery and equipment. As the projects have been delayed for years several companies are facing financial crunch. Although in the coming years production of power or coal from the held-up projects will boost economic activity, the immediate impact will be to boost sentiment, while most of the credit will go to the new government.
Officials pointed out that as 14 states have also decided to set up agencies such as PMG, which will also deal with smaller projects, the pace of project clearances is going to pick up.
Source: Times of India
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