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Wysłany: Śro 0:31, 04 Wrz 2013 Temat postu: 8 lakh cr worth of projects shelved-spun1 |
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8 lakh cr worth of projects shelved,[link widoczny dla zalogowanych]
That the economy is on a steep slide due to the drying up of investments is apparent from the fact that corporates have shelved projects worth a whopping Rs 1.8 trillion (Rs 1.8 lakh crore) in the April-August period, based on the Centre for Monitoring Indian Economy (CMIE).
Significantly,[link widoczny dla zalogowanych], this is not due to high interest rates,[link widoczny dla zalogowanych], as is being claimed by every industry lobby,[link widoczny dla zalogowanych], but totally on account of delays in getting land and environmental clearances among others.
The best cause of shelving of projects was problems being encountered in land acquisition,[link widoczny dla zalogowanych], securing environmental clearances,[link widoczny dla zalogowanych], local unrest,[link widoczny dla zalogowanych], lack of accessibility to fuel or raw materials, particularly the mined ones such as coal and iron ore,[link widoczny dla zalogowanych], it added.
Several promoters have cited inadequate availability of cheap funds and poor demand also as causes of aborting projects,[link widoczny dla zalogowanych], according to the independent economic think tank.
expect project shelving to stay high or rise even further in the coming months. A huge pipeline of projects has developed previously couple of years because of the rush among companies to announce new projects because the capex boom began in 2004-05,[link widoczny dla zalogowanych], CMIE said.
Outstanding investment rose six times since the beginning of 2005-06 and stood at Rs 141,[link widoczny dla zalogowanych].8 trillion by the end of June 2012,[link widoczny dla zalogowanych].
In a capex cycle, as more and more investments get announced,[link widoczny dla zalogowanych], promoters of all projects within their early stages re-assess their projects within the light of increased competition and also the relatively weaker projects get shelved.
The CMIE data shows that the large and capital-intensive industries have experienced huge capacity additions in the past few years. And their capacity utilisation has fallen as the demand from customers has not grown at the same pace.
Keywords: Shelved projects,[link widoczny dla zalogowanych], corporates shelve projects worth Rs 1.8 lakh crore,[link widoczny dla zalogowanych], Centre for Monitoring Indian Economy, CMIE, delay to get land, green nod among reasons for project shelving,
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