Telangana Gets Rs 3.3 Lakh Crores Investments

As of June 30, 2014, Telangana has attracted total live investments worth about Rs. 3.3 lakh crores, with construction and real estate (28%), services (other than financial - 23%), electricity (19%), irrigation (16.5%) and manufacturing (12%) sectors together accounting for almost 99% of these investments, with mining being a minor investment destination accounting for the remaining 1% share.

Ownership-wise, the private sector accounts for almost 59% of the total investments attracted by the State, with the domestic private sector pumping in the lion's share of 56.4%, and private foreign investors accounting for the remaining 2.4%, noted the strategy paper prepared by The ASSOCHAM Economic Research Bureau.

The State government accounts for almost 29% of the total investments attracted by Telangana, with about 12% involving the Central government, and government local bodies accounting for the remaining.

"Telangana needs to focus on a strategy of using public investment exclusively for the development of the primary sector, and private investment for industry and services sectors," said ASSOCHAM national secretary general D S Rawat. "In line with this strategy, the State needs to restrict itself to the role of regulation in the industry and services sectors, while the private sector develops and manages them."

However, projects with about 30% share of the total investments attracted by Telangana are facing delay in implementation owing to a plethora of reasons like land acquisition delays, fund constraints, delay in environmental and other clearances, and law and order problems.

"While projects with about 70% share of the total investments are being implemented, projects with 20% share of the investments are in the announcement stage, projects with 7% have been stalled, and there is no information about projects with about 3% share of the total investments," highlighted the ASSOCHAM strategy paper. (INN)