Lured by an efficient bureaucracy, better infrastructure and ease of land acquisition, almost 17 percent of new investments in the power sector came to Gujarat during the course of FY 2004-05 and 2012-13.
According to a recent study by the Associated Chambers of Commerce and Industry of India titled ‘State-wise analysis of power sector: Consumption, demand & investment’, Gujarat’s share in terms of new investments in the power sector from various public and private sources was the highest among states during the period. Of new investments totaling Rs. 31.3 lakh crore attracted by the power sector across the country, Gujarat got over Rs. 5.3 lakh crore.
During FY 2012-13, the state attracted new investments worth over Rs. 1,560 crore of which the private sector accounted for 56 percent and the public sector 44 percent.
The study highlighted that with investments worth about Rs. 22 lakh crore, Gujarat also accounted for the highest share of over 44 percent in total outstanding investments of over Rs. 49.5 lakh crore attracted by the power sector across the country as of FY 2012-13. The state’s total outstanding investments in the power sector increased from over Rs. 20 lakh crore as of FY 2004-05, growing at a CAGR of about 35 percent. Its share in total outstanding investments attracted by the power sector across the country increased from about seven percent to over 44 percent, the study added.
The power sector in Gujarat witnessed a significant improvement, the study noted, with just about 29 percent of investment projects remaining ‘non-starter’ as of FY 2012-13. Over half of the state’s investment projects in the power sector were ‘non-starter’ as of FY 2004-05.
Across the country, 65 percent of total investment projects in the power sector remained ‘non-starter’ as of FY 2012-13, increasing from the previous level of 61.5 percent as of FY 2004-05.
The study pointed out that Gujarat registered the maximum improvement of about 11.5 percent in power deficit during the course of FY 2004-05 and 2012-13.