look news india
Ahmedabad: Modi government in India has been increasing expenditure on infrastructure for the last few years. This capital expenditure is gradually increasing and now the government wants that private capital expenditure should also increase. However, recently there has been a slowdown in government and private capital expenditure due to weak global and domestic demand and other conditions. In the four quarters ending December 2023, the value of abandoned capital expenditure (capex) projects is more than double the value of completed projects.
Data from the Center for Monitoring Indian Economy shows that a total of Rs. Projects have been completed. 6.9 lakh crore, while pending projects total Rs. Reached Rs 15 lakh crore. Between completed and stalled projects Rs. This gap of Rs 8.1 lakh crore has persisted throughout the investment cycle.
Abandoned projects include projects that have been abandoned, discontinued, put on hold, or for which no information is available in any case. Capital investment i.e. long term infra investment means investment in roads, factories and other long term assets. The government is pushing for more capital expenditure to boost growth and boost the economy by giving a big boost to overall investment in the country. However, capital expenditure by the government has also seen a slowdown in recent months.
In recent times, the value of stalled projects supported by the government has been higher than that of the private sector. The reason behind this situation could be less activity by the private sector or the government's decision to abandon projects which are not performing well. In the year ending December 2023, the government has spent Rs. Projects worth Rs 8 lakh crore remained pending, while private sector projects worth Rs. Projects worth Rs 7.1 lakh crore were abandoned.
Among the stalled projects in December 2023, the cost of manufacturing sector projects was Rs 4.4 lakh crore, which was Rs 2.5 lakh crore in December 2019. Due to this, most of the stalled power projects in the country were left behind. Power projects worth about Rs 2 crore were abandoned before December 2019. 5.3 lakh crore. In December 2019, the services sector had the largest share in abandoned projects at Rs. Which reduced to Rs 7.8 lakh crore. It has become worth Rs 4 lakh crore.