The Associated Chambers of Commerce and Industry of India (Assocham) have released data showing that only 55.7 per cent of all investments in Madhya Pradesh have fructified till March 2013. The State, however, does better than its neighbour Gujarat — also a BJP ruled state— where only 45.9 per cent of investments are in some stage of implementation.
Of the 20 States analysed, Congress-ruled Haryana tops the chart at 82.2 per cent of projects being implemented. Gujarat, whose model of development has been praised by economists such as Jagadish Bhagwati, is at the bottom. Madhya Pradesh is ranked 13, above the southern tigers of Tamil Nadu and Karnataka, and even Janata Dal (United)-ruled Bihar. The State, however, scores lower than the national average of 57 per cent.
“The data, sourced from the Centre for Monitoring Indian Economy (CMIE), has been analysed by the Assocham Economic Research Bureau,” Assocham’s assistant director of corporate communications Avdhesh Sharma said.
Speaking to The Hindu , Assocham Secretary General D.S. Rawat explained that industry in Madhya Pradesh has lost out due to delay in land acquisition and environmental clearances. “Mining, power and cement sectors have suffered as they are not able to get land. The new land bill, once implemented, will give clarity on land acquisition although prices will increase. The other major factor in many projects not taking off is the delay in environment clearances,” he said.
Mr. Rawat attributed Haryana’s high implementation rate to the fact that most of its investment is in the real estate sector, which takes relatively lesser time to come up.