Meanwhile, the chamber voiced its opposition against reservation in the private sector and swore by a code of conduct that calls upon all companies not to practice discrimination against religion, caste and gender.
Of stalled projects, it was the steel sector which involved most investments--Rs 1,05,000 crore. Others fall in cement, petrochemical based products, paper, gems & jewellery, non-ferrous metal as of April this year. The list was given to the Department of Industrial Policy and Promotion (DIPP).
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Ficci President Naina Lal Kidwai told reporter that these projects could raise GDP growth by
one percentage point. Another issue flagged off by her is non-performing assets of banks that rose due to these stuck up projects.
At a meeting between Finance Minister P Chidambaram, bankers and industrialists earlier in Mumbai, 215 projects were identified which were stalled and another 125 projects which are new projects to which banks have sanctioned loans but which have not started.
Earlier this week, Prime Minister's Economic Advisory Council chairman C Rangarajan has pitched for clearing stalled projects as these are holding up capital and raising incremental capital-output ratio (ICOR) in the country.
In fact, one of the reasons found for a decade-low growth of five% in 2012-13 was these stuck-up projects. Rangarajan had said ICOR in the economy rose to 5.1 in 2011-12 and 2012-13 from historical levels of 4, that inhibited economic growth.
Investment rate of 35.8% in 2012-13 was sufficient to give a growth of 7.5-8%, if ICOR remained at four.
"It appears investment capital accumulated in projects is not yielding commensurate output," Rangarajan said, blaming the stalled projects.
He said such projects stretched corpporate profitability and balance sheets and eroded business and investment sentiment.
Only earlier this week, the Cabinet Committee on Investments (CCI) had cleared 25 of the 31 oil & gas blocks that were held up because of clearances. It had also cleared 13 power projects, freeing up stalled investment of around Rs 33,000 crore.
Meanwhile, FICCI voiced its opposition against reservation in private sector and adopted a code of conduct on affirmative action.
"Reservation in private sector has been an issue before the Government. National chambers feel that the move would amount to compromising merit and competitiveness of Indian industry," it said in a statement here.
Rather, it is suggested that the industry would resort to affirmative action through promoting education, skill building and entrepreneurship among the backward caste youth, enhancing their employability and inclusive growth, the statement said.
In this regard, FICCI National Executive Committee accepted a Code of Conduct on Affirmative Action, to promote inclusive growth, create opportunities and empowerment of backward sections of the society.
The code of conduct include vows like-- the company, enterprise provides and promotes equal opportunity to all its employees and any form of bias, or discrimination based on caste, religion or gender is not practiced, company while appointing vendors or entering into contracts for supply or purchase, would give preference to entrepreneurs from the disadvantaged group.
A few years back Prime Minister Manmohan Singh had called upon India Inc to take affirmative actions to create employment and education facilities for the vulnerable section.
The chamber also voiced its concern over land acquisition bill, though it admitted that the content of the latest bill is not available publicly.