New Delhi: A large number of projects in India fail to take-off and just remain at the announcement stage due to problems in land acquisition and delays in environmental clearances, an Assocham study said today.
Other hurdles faced by corporates in executing their investment plans include slow bureaucratic approvals, poor availability of skilled labour and high credit cost.
Of the 266 corporates which participated in the chamber’s study, 67% said that slow environmental clearances, poor infrastructure and land acquisition problems act as investment constraints and lead to project uncertainties.
“These problems continue to be key concerns for corporates, intending to realise their investment dreams both for expansion as well as fresh investments due to which most projects remain on announcement stages,” it said.
The study said that environment clearances take lot of time as projects for expansion and modernisation have to pass through over 36 channels at state and central levels.
Similarly, infrastructure pitfalls such as inadequate power and poor roads increase production and transportation costs.
Besides, about 70% of corporates stated high costs and poor availability of skilled labour as other big challenges.
The study has called for corrective measures to address these issues so that corporate investment plans are able to bear fruit.