Power projects bore the brunt
The Q2/FY20 saw 103 projects with a total investment of Rs 69,588 crore being shelved by their respective promoters. On Q-o-Q basis, this indicated a rise of 40.7 percent in total projex being put on the back burner.
Of the 103 stalled projects, the largest one was that of Gujarat State Fertilizers & Chemicals. The company, which intended to set up a Rs 10,000 crore fertiliser project at Dahej in Gujarat, could not get the necessary government clearances in the last four years.
Thirty power projects worth Rs 46,489 crore lost confidence of their promoters and were shelved during the July-September 2019 period. These projects accounted for around two-third of the total shelved projects investment in Q2/FY20. Failure to secure the required finance and coal linkages were the two major reasons cited by project promoters for shelving the mega power projects.
The Manufacturing and the Infrastructure sectors saw a fall in projex shelved on Q-o-Q basis.
As majority of the shelved mega power projects were owned by private promoters, the share of the private sector in the total amount shelved climbed up to 78.9 percent in Q2/FY20. A quarter ago, the share stood at 55.1 percent.
A Rs 3,200 crore Office-cum-Residential Complex at Wadala, Mumbai, was the largest project shelved in the Central government sector. NTPC and NLC each shelved two power projects.