CMIE reports that Andhra Pradesh saw revival of a whopping Rs. 612 billion investments in 2014-15, which had been previously stalled. These are the highest value of investments ever revived in a year in Andhra Pradesh as well as any other state in India. These primarily came from revival of the Rs. 600 billion Kovvada (Srikakulam) nuclear power project, which was stalled upto August 2014 due to land acquisition problems. Andhra Pradesh recorded Rs. 265.7 billion stalled investments, lowest in last four years. They were largely seen in the mining and storage & distribution facilities, contrary to the huge stalling of power sector investments in the preceeding three years. I
The revival of investment projects in India was at an all time high in 2014-15 (in past 20 years) at an impressive Rs. 1.9 trillion. This compensated for the huge stalling of investments across India to an extent and helped in maintaining a healthy and positive investment climate.
Apart from Andhra Pradesh, Gujarat, Karnataka and West Bengal also saw substantial investment revival over Rs. 200 billion each. Projects worth Rs. 285.3 billion were revived in Gujarat, coming largely from Essar Oil’s Rs. 202.4 billion Vadinar Oil Refinery Expansion Phase III project. The company communicated its preliminary intention to consider this project to Gujarat government, after obtaining necessary approvals. The project entailing expansion of petroleum refining capacity by 20 million tonnes to 40 million tonnes, was put on the back-burner upto July 2014 by Essar Oil.
Indian Oil Corporation’s (IOCL) Rs. 61.3 billion Gujarat Acetic Acid Project was also revived, after IOCL scrapped it citing its unviability. However, IOCL is now working towards making the project viable and looking for alternate technology providers, after British Petroleum backed out.
Karnataka saw revival of Rs. 219.4 billion investments in the year. Despite huge stalling of investments in the steel and cement industry, the sectors witnessed revival of Rs. 199.9 billion and Rs. 15 billion investments, respectively. Whereas, West Bengal’s Rs. 453.7 billion revived investments came mainly from the Rs. 450 billion Deocha-Pachami coal block project. SJVN has signed a joint venture (JV) with the six state power generating companies of West Bengal, Karnataka, Bihar, Punjab, Tamil Nadu and Uttar Pradesh for mining coal from the Deocha Pachami coal block in West Bengal.
Besides, Rs. 96 billion projects were revived in Telangana and Rs. 83 billion in Odisha.