Gujarat acquires highest share in new investments attracted by power sector: Study

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Gujarat is ranked on top acquiring highest share of over 17 per cent in the new investments attracted by the power sector during the course of financial year (FY) 2004-05 and FY 2012-13, apex industry body ASSOCHAM said today.

"Gujarat has attracted new investments worth over Rs 5.3 lakh crore of the total new investments worth over Rs 31.3 lakh crore attracted by the power sector from various public and private sources across India thereby indicating significant development in power availability across the state," noted a study conducted by the Associated Chambers of Commerce and Industry of India (ASSOCHAM).

During the FY 2012-13, Gujarat attracted new investments worth over Rs 1,560 crore of which private sector accounted for lion's share of about 56 per cent as against 44 per cent share of public sector.

"Flow of private investments is determined by attractiveness of investment opportunities as they are mostly driven by profitability considerations," said D.S. Rawat, national secretary general of ASSOCHAM while releasing findings of the chamber's study.

"Bureaucratic efficiency, infrastructure facilities, and ease of land acquisition influence the flow of private investments," said Rawat. "Tax concessions, product market conditions and exit policies are effective tools of private investment attraction."

With investments worth about Rs 22 lakh crore, Gujarat also accounts for highest share of over 44 per cent in total outstanding investments worth over Rs 49.5 lakh crore attracted by the power sector across India as of FY 2012-13 clocking compounded annual growth rate (CAGR) of about 26.5 per cent, highlighted the study prepared by The ASSOCHAM Economic Research Bureau (AERB).

Story first published: Wednesday, July 30, 2014, 12:40 [IST]
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