Poor implementation of projects by investors across the Madhya Pradesh has escalated their costs to the tune of Rs96,000 crore, Assocham secretary general DS Rawat claimed on Tuesday.
Talking to media persons at an event in Indore, Rawat said: “According to my information there has been a cost escalation of about Rs96,000 crore due to pending projects worth Rs 3.26 lakh crore that have been languishing till date.”
Referring to the state government's claim that the state had received Rs6.89 lakh crore investment proposals during the Global Investors Summit in October last year, Rawat said only a tiny fraction of the same had been implemented on ground.
Pointing at the lack of environment for investment in the state, he said: “There are problems of availability of raw material, land and clearances (in MP) and so investors, especially the foreign investors, are not getting the right for investing in the state.”
“The chief minister needs to form a high-level committee to review the problems of investors on a regular basis and ensure that there are no hurdles,” he said.
The state industry department has, however, played down the Assocham secretary general's criticism saying that MP has been one of the top performers in the country in terms of economic growth.
“Madhya Pradesh has registered 11.08% GDP growth during 2013-14 as against India's growth rate of 4.9% during the same period,” a senior official said. “We have already formed a high-level committee to solve the investors' problems and also appointed officials to keep a track on big investment proposals,” he said.
A report released by Assocham recently has stated that the sectoral performance indicates that robust economic growth of Madhya Pradesh during 2013-14 is largely on account of spectacular performance of agriculture and allied sector.