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High Under-Implementation rate of industrial projects in Uttar Pradesh: Study

Updated: Oct 07, 2017 06:19:22am

High Under-Implementation rate of industrial projects in Uttar Pradesh: Study

New Delhi, Oct 7 (KNN) In a report to the Uttar Pradesh government, ASSOCHAM stated that in the recent years, the under-implementation rate of the projects in Uttar Pradesh is on a rise.

According to the study, under-implementation rate in UP has been increased to 70 per cent in 2016-17 from 52.4 per cent in 2011-12, Uttar Pradesh being India’s fourth largest state in terms of economic size, its economic contribution is mere 7.9 percent.

Talking to KNN, Sunil Vaish, President of Indian Industries Association (IIA) said that a lot is to be done in the state in order to realize higher implementation rates and achieve desirable economic goals.

The government must lay special emphasis on the Micro, Small and Medium Enterprises (MSMEs) that forms the crust of the economy, Vaish said.

Citing problems, Vaish said that in the aftermath of demonetization and GST, the output in the MSME sector has been reduced to 30-40 per cent.

Also the demand is quite low and there is no liquidity is the market amidst confusions and compliance burdens under the new taxation.

Another concern hindering the ecosystem for MSMEs is the regularly power shortages in many industrial regions of the state, he added.

Also the leather industry that formed the backbone of MSMEs in UP are totally shattered due to the closure of half of the slaughterhouses.

Suggesting measures, Vaish said that the Government should focus on rational land use, electricity sector, improve ease of doing business to attract foreign investment so that the local MSME industry can also proliferate and grow. (KNN/AG)


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