Odisha tops the list in manufacturing sector investment proposals across the country, with a share of 17 per cent of the national total, data collected for the first six months of the current financial year (2015-16), showed.
However, when it comes to implementation, about 39 per cent the projects faced delays with little progress as of September 2015, according to a recent study by industry body Assocham.
Assocham, in an earlier study, had noted that projects with investments worth just Rs1,60,000 crore, ie, a mere 11 per cent of total investments worth about Rs1,500,000 crore proposed in the manufacturing sector in the country has actually been recorded as of September 2015.
According to the latest study, titled `Impact analysis of delay in investment implementation in Manufacturing', India has so far attracted a total investment of Rs33,00,000 crore till September 2015.
While Odisha tops the list with a 17 per cent share, Gujarat was at No 2 position with a 12 per cent share of the total investments, followed by Karnataka (11 per cent), Jharkhand (9 per cent) and Chhattisgarh (7 per cent).
Metal and metal products accounted for 48 per cent of the total live investments in the manufacturing sector in India while Odisha topped the metal and metal products group with a 79 per cent share in the group.
Manufacturing projects in the steel sector are facing maximum cost escalation with a share of over 50 per cent followed by refinery (28 per cent).
"Manufacturing sector in India attracted live investments worth about Rs3,300,000 crore, ie, about one-fifth of the total live investments worth over Rs16,400,000 crore attracted by various sectors across India as of September 2015," noted the study titled 'Impact analysis of delay in investment implementation in manufacturing', conducted by the ASSOCHAM.
"Metal and metal products alone accounted for almost half (48 per cent) of the total live investments attracted by manufacturing sector in India followed by chemicals and chemical products (24 per cent), machinery (8 per cent), transport equipment (7 per cent), construction material (7 per cent), food and agro based products (three per cent)," highlighted the study prepared by the ASSOCHAM Economic Research Bureau (AERB).
Amid states, over 68 per cent manufacturing projects in Rajasthan have remained under implementation followed by Haryana (67.5 per cent), Bihar (63 per cent), Assam and Uttar Pradesh (62 per cent).
"Considering that long delays in projects' implementation hurts investors' sentiment, the government needs to have a strong plan to prioritise speeding up stuck projects' effective implementation by creating a target-oriented roadmap," said Assocham secretary general DS Rawat while releasing the findings of the chamber's study.
"Even investors should be penalised if projects get delayed due to improper planning, change of ownership, lack of finance, absence of co-ordination with contractors and other related issues," said Rawat.
Projects with about 37 per cent of the total live investments attracted by manufacturing sector remained under implementation as of September 2015, ie, 1,160 projects with investments worth over Rs1,200,000 crore.
Of these 422 delayed projects, only 80 projects have declared employment potential and these projects alone could generate 4,50,000 employment opportunities.
Manufacturing projects in the steel sector are facing maximum cost escalation with a share of over 50 per cent, followed by refinery (28 per cent).
Ownership-wise, projects in manufacturing sector that are owned by private players account for over 62 per cent share followed by that of public sector (38 per cent).
Delayed projects facing cost escalation have maximum share of 31 per cent in Odisha followed by Karnataka, Rajasthan and Jharkhand (nine per cent share of each).
Manufacturing projects that are under implementation in Telangana are facing maximum cost escalation of over 73 per cent of the actual cost followed by Odisha (71 per cent), Jharkhand and Rajasthan (66 per cent).