Similarly in Gujarat, infrastructure accounted for highest share of 57 per cent in total investments attracted by the western state followed by manufacturing (25 per cent), construction (13 per cent), mining (three per cent) and irrigation (two per cent) as on December 2014.

With a share of 11.5 per cent and 10 per cent, Gujarat had attracted third highest share in investments attracted by manufacturing and construction & real estate sector across India, while the state attracted fourth highest share of about eight per cent share in infrastructure sector investments.

Interestingly, share of manufacturing sector had increased by five per cent in the total investments attracted by Gujarat as on December 2009 (20 per cent). While the share of infrastructure and mining both had increased by about two per cent respectively, the share of construction and irrigation sectors had declined by six per cent and three per cent respectively, highlighted the ASSOCHAM study.

Projects with investments worth over Rs 86.5 lakh crore i.e. over 56 per cent of the total investments were under implementation or remained non-starter as on December 2014 and private sector accounted for major share (51.5 per cent) in this regard.

Maharashtra had maximum share of over 10 per cent in projects under implementation followed by Karnataka (7.4 per cent), Gujarat (7.4 per cent), Odisha (seven per cent) and Tamil Nadu (6.5 per cent).

Public sector accounted for 56 per cent share in projects that remained non-starter in Gujarat as on December 2014 which had increased from 50 per cent in 2009.

Long delays in implementation of investment projects hurts the sentiment of investors and also results in incurring of huge costs as such the government needs to have a strong plan and must prioritize cleaning up delayed projects in the form of effective implementation which would only be possible through an appropriate, target-oriented roadmap for both the clearance authority and the investors, suggested the ASSOCHAM study.

"The government needs to limit the time frame for each clearance authority and if they are unable to meet the deadline, they should be penalized," the report said.

Inappropriate planning, change of ownership, lack of finance, lack of co-ordinance with the contractors and others have also resulted in delay in implementation which calls for strict monitoring of such activities in an appropriate manner, it added.
END