Falling trend in stalled projects continues

The refreshing findings of the 68^th Survey of Projects Investment in India, conducted by Projects Today, saw a sharp fall in the projex stalled. The latest quarter ended September 2017 saw 113 projects worth Rs 69,032 crore being stalled. This was the lowest stalled projex figure in the last six quarters.

When compared with the previous quarter’s statistics, it indicates a fall of 64.7 percent. And when compared with the stalled projex of a year ago, it indicates a fall of 9.8 percent.

A similar trend was seen in the private sector too. In the latest quarter ending September 2017, 23 projects worth Rs 51,025 crore were stalled as against 14 projects worth Rs 47,169 crore stalled in the same quarter last year. In the preceding quarter, 48 projects worth Rs 1,26,043 crore were stalled.

The government sector, which has taken the mantle of keeping the projex cycle moving, saw 30 projects worth Rs 18,006 crore being put on the back burner as against 67 projects worth Rs 69,300 crore in the preceding quarter.

The three major projects stalled during the last quarter were HSMC India’s semiconductor unit at Prantij in Sabar Kantha district, worth Rs 29,013 crore, due to lack of funds; a Rs 10,900 crore Chandigarh Metro Rail Project as it was not found feasible for a short distance; and Tata Power’s 3×660 MW coal-based power unit at Tiruldih in Saraikela Kharsawan district of Jharkhand, due to coal linkage issues.

Among the states, Gujarat was the biggest loser with projex worth Rs 29,467 crore vanishing in the form of nine projects. The state accounted for 43 percent of the total projects stalled during the last quarter, followed by Chandigarh with projex worth Rs 10,900 crore in the form of a single project. In Karnataka, 16 projects worth Rs 3,114 crore got shelved during the last quarter.