The Q3/FY20 saw shelving of 125 projects with a total projex outlay of Rs 1,32,450.7 crore. On a Q-o-Q basis, while the number of projects shelved came down from 157 to 125, in terms of total investment it marked an increase of 19.6 percent. In the preceding quarters, the total projex shelved had increased by 28.1 percent. Funds constraint, delay in clearances, delay in payment by government agencies and non-availability of land were the key issues cited by project promoters for abandoning their projects.
Of the 125 shelved projects, the Rs 21,820 crore hydel-based power project of Etalin Hydro Electric Power was the largest. The project was proposed in 2007 but could not make much progress and was stalled as the site was considered as one of the most biodiversity-rich places in the world. The second largest shelved project was the Rs 10,560 crore coal-based thermal power project of NHDC for want of enough funds. In all, 22 power projects with a total outlay of Rs 49,166.9 crore were shelved by their promoters, mostly for want of funds and timely clearances. Of this, 19 were owned by private companies.
The infrastructure sector saw vanishing of 56 projects worth Rs 61,239 crore. Around half of the projex shelved were accounted by 21 port and shipping infrastructure projects. Of this, 12 projects with a total outlay of Rs 20,565.5 crore were private projects. Delay in clearance and funds constraint were the two main reasons for putting in these projects on the back burner.
All the 40 projects shelved in the Manufacturing sector were owned by private promoters. Delay in clearance, land issues and unfavourable market conditions were the prominent reasons cited by the promoters for abandoning their projects.