Punjab ahead of neighbours in FDI

Punjab might not figure among the top 10 states in attracting FDI in 2006-07, but the state is far ahead compared to neighbouring Haryana and Himachal Pradesh in foreign investment during 2006-07.

In 2006-07, 48 projects involving a FDI of Rs 5,902 crore were sanctioned in Punjab, while during the same period Haryana managed to attract 42 projects worth Rs 3,897 crore as FDI. Himachal Pradesh got Rs 2,644 crore through 30 projects as FDI during the period.

The investment will be done in setting up new projects, expansion and modernisation of new projects and diversification over a period of 5-6 years. The investments are mainly in construction sector and manufacturing sector.

As per the RBI data, 1,054 projects were sanctioned in the country in 2006-07 with a total cost of Rs 2,83,440 crore.

Analysts feel that in this financial year too Punjab will lead the pack in northern region as LN Mittal is investing over Rs 4,000 crore in the Bathinda refinery and there are other ambitious projects as well in the pipeline.

Recently, the Associated Chambers of Commerce and Industry of India (ASSOCHAM) in its vision paper 'Punjab, Haryana "" the Knowledge Valley of India' has projected these two states as the most potential centres for 'Knowledge Valley of India' and expects them to attract Rs 50,000 crore by 2012 through PPP model.

The promising areas for investments in the valley would be educational institutions, pharmaceutical, biotechnology and nano-technology', besides molecular biology, agro-processing, food processing, retail etc, electronics, hardware, medical treatment etc.

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