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Gujarat has the highest share with over 17 per cent in new investments attracted by the power sector from 2004-05 to 2012-13, apex industry body Associated Chambers of Commerce and Industry of India (ASSOCHAM) said today.
The analysis forms part of a study titled ‘State-wise Analysis of Power Sector: Consumption, Demand and Investment’ conducted by ASSOCHAM.
“Gujarat has attracted new investments worth over Rs 5.3 lakh crore of the total new investments worth over Rs 31.3 lakh crore attracted by the power sector from various public and private sources across the country. This indicates significant development in power availability across the state,” the study highlighted.
Private sector accounted for 56 per cent share of the new investments worth over Rs 1,560 crore attracted by Gujarat in 2012-13 while public sector contributed 44 per cent of new investments.
Releasing the findings of the study and indirectly raising pitch for private investments in power sector, Assocham national general secretary DS Rawat said, “Flow of private investments is determined by attractiveness of investment opportunities as they are mostly driven by profitability considerations.”
“Bureaucratic efficiency, infrastructure facilities, ease of land acquisition, among others influence flow of private investments,” said Rawat, adding that tax concessions, product market conditions and exit policies are effective tools to lure private investment.
Gujarat, the study further points out, also accounts for the highest share of over 44 per cent in total outstanding investments worth over Rs 49.5 lakh crore attracted by the power sector across the country as of FY 2012-13.
Stating that 65 per cent of the total investment projects in the power sector attracted by India have remained non-starter as of 2012-13, the study stressed on the need for focus on smooth implementation of power projects as slow pace of implementation transforms into huge financial losses for the investors.
