During the 12 months ended March 2018, the country saw shelving of 674 projects with a total outlay of Rs 3,63,995 crore. Compared with the previous fiscal’s stalled figure indicates hike in project stalling by 7.5 percent. During FY17, total stalled projex had declined by 2.9 percent on Y-o-Y basis.
Among the major sectors, manufacturing bore the brunt and accounted for 43.3 percent of the total investment disappeared from the projex arena. Within the sector, large scale projex purging was seen in the petroleum refinery, cement, steel, aluminium and electronics sectors.
Despite of fall in the total quantum of projex, electricity sector still accounted for 31.7 percent of the total stalled projex. Twenty three thermal power projects with a total outlay of Rs 1,05,677 crore were put on the back burner in FY18. Non-conventional power sector, which attracted increased private investment in the recent years also saw purging of 37 projects worth Rs 5,059 crore. Most of the projects were solar based. Fall in tariff rates and rise in input costs due to change in the import policy made most of these projects unviable.
Infrastructure sector saw 294 projects worth Rs 86,200 crore stalled during FY18. This is the highest amount stalled in this sector in the last five years. Among the sub-sectors, roadways saw stalling of 37 projects worth Rs 14,008 crore and railways saw 5 major projects (including two metro rail projects) worth Rs 40,169 crore being shelved.
Gujarat and Maharashtra suffered the most
Top five projex looser states accounted for nearly 60 percent of the total projex purged in FY18. The table was led by Gujarat, which lost 77 projects worth Rs 54,842 crore. The leader in terms of fresh projex, Maharashtra lost 177 projects worth Rs. 50,663 crore. Jharkhand, Madhya Pradesh and Tamil Nadu were the other top five states in terms of projects stalled in FY18.
Pace of Projects Completion slowed
As per the information available with Projects Today as of 31 March 2018, 1,193 projects with a total outlay of Rs 2,84,041 crore were commissioned in FY18. Given the fact that information on projects completion, especially in the medium and small category, becomes available with a time lag of 4 to 6 months, this figure will move up in the coming months. Projects Today expects the total amount of projex completed during FY18 to settle at Rs 3,40,000 crore. Even this figure would be lesser than the Rs 4,25,228 crore projects commissioned in the preceding fiscal.
Some of the major projects commissioned during FY18 are: