Projects worth ` 26.5 lakh Cr stuck on regulatory issues: Assocham

More than 1,550 projects with investments worth about ` 26.5 lakh crore remained stuck at different stages as of December last year across 21 states on issues such as land acquisition and lack of funds, industry body Assocham noted.
“There were a total of 16,966 live projects with investments worth over ` 154 lakh crore attracted by various sectors from both public and private sources as on December 2014,” noted a study conducted by Assocham.
“Over 1,550 projects with investments worth about ` 26.5 lakh crore remained stuck in different stages as on December 2014 across major 21 states in India,” Assocham said.
Infrastructure sector accounted for lion’s share of about 45 per cent of stuck projects followed by manufacturing (28 per cent), housing construction (14 per cent), electricity generation (12 per cent) and irrigation (two per cent).
Lack of clearances, both environment and non-environment, accounted for major share of 12.5 per cent amid key reasons behind stuck projects followed by land acquisition problems (11 per cent), unfavourable market conditions (10 per cent), lack of funds and promoter interest (nine per cent each), poor supply of fuel/feedstock/raw material (four per cent), natural calamity (one per cent) and others.
Amid stuck projects, implementation of over 51 per cent was stalled while 37 per cent remained under implementation, over six per cent were in announcement stage and there was no information of the remaining six per cent, further observed the Assocham study.

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