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The mystery of Rs 8-trn gap between dropped, completed projects in capex

Govt's contribution in the trend is now trending higher than the private sector's

The Parliamentary Standing Committee on Commerce has observed that a massive shortfall in the budgetary allocation of over Rs 1,900 crore by the finance ministry to the industry department

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he value of government-backed dropped projects has exceeded private sector ones in the recent past

Ashli Varghese New Delhi

2 min read Last Updated : Feb 16 2024 | 11:58 PM IST

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The value of dropped capital expenditure (capex) projects was more than twice the value of completed ones for the four quarters ending December 2023.

The total value of completed projects was Rs 6.9 trillion on a trailing four-quarter basis, shows data from the Centre for Monitoring Indian Economy (CMIE). The value of dropped projects was Rs 15 trillion. This Rs 8.1 trillion gap between completed and dropped projects has remained across investment cycles (Chart 1).

The earliest data, going back to December 2009, shows a marginally lower value of completed projects than those being dropped. Dropped

Topics : India's infrastructure India manufacturing growth Infra projects lending CMIE CMIE data infrastructure projects BS Number Wise

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