UP govt must set up special team to monitor projects: Assocham

5 Oct 2017

The Uttar Pradesh government should set up a Special Monitoring Committee to ensure timely implementation of 1,050 projects worth of about Rs 9 lakh crore, apex industry body Assocham has suggested.
"Even if 50 per cent projects get implemented, it will help UP generate around 1 lakh direct and 1,50,000 indirect job opportunities," Assocham said in a study titled 'Uttar Pradesh: Economic Growth and Investment Performance Analysis'.
The study, released by Assocham Secretary General D S Rawat here on Thursday, stated that as of 2016-17, 606 projects worth over Rs 6 lakh crore were under implementation in UP.
"Over the years, under-implementation rate has increased sharply from its lowest level of 52.4 per cent in 2011-12 to 70.2 per cent in 2016-17. If we compare this with all-India average under-implementation rate, UP's under-implementation rate is much worse during most of the period except 2011-12," it said.
Sector-wise, irrigation has most projects that are under-implementation (99 per cent), followed by mining (91.5 per cent), construction and real estate (90 per cent),
electricity (68 per cent) and non-financial services (63 per cent).
A higher under-implementation rate implies that most of the projects or outstanding investments are in process and are yet not completed, it said, adding that a higher under-implementation rate does not augur well as actual benefits of an investment are only derived upon completion.