Majority of the new investments attracted by Madhya Pradesh during the investors summits and other means are yet to take off, said an Assocham study published here on Monday.
Investments in the State declined by 14 per cent in the fiscal year ended March 2016 while 86 per cent of the `53,000 crore of committed investments remained on paper, said the Assocham study.
About `44,000 crore of the `53,000 crore of investments announced in the financial year 2015-16 remain mere announcements while the remainder have been at various stages of approvals, said an Assocham 'Analysis of Madhya Pradesh: Economy, Infrastructure and Investment'.
According to the analysis, investments declined 60 per cent in 2013-14 and then jumped a whopping 700 per cent the following year due to Global Investors' Summit, before declining again by 14 per cent in 2015-16.
Manufacturing accounted for 68 per cent of new investments in the last financial year, followed by power (19 per cent), services (11.5 per cent), and construction (one per cent), Assocham said.
Until the 2015-16 fiscal year, total live investments of `5.75 lakh crore were committed in Madhya Pradesh, out of which `3,00,000 crore of investments are at various stages of implementation.
Power projects account for 55 per cent of the total live investments, followed by manufacturing (20 per cent), non-financial services (12 per cent), irrigation (six per cent), mining (four per cent), construction and real estate (three per cent).
Assocham attributed poor realisation of investments to delays in environmental approvals and land acquisition, bottlenecks in supplies of raw material, shortage of skilled labour, financial constraints, and loss of interest among promoters.
It said private investors have also been put off by the irregular development of physical and social infrastructure.
It is also worrisome to note that industrial sector’s contribution to MP’s economy had declined to 22 per cent in 2014-15 from peak level of 26 per cent in 2010-11, besides the workforce dependability in industrial sector had also declined to three per cent in 2011 from the level of four per cent in 2001.