Hyderabad, April 20 (IANS) Telangana and Andhra Pradesh account for the highest share of about 12 percent and 10 percent, respectively, in total live investments attracted by the irrigation sector, says apex industry body Assocham.
The sector attracted over Rs.5.5 lakh crore investment from both public and private sources across India as of 2014-15.
“While regions that now comprise Telangana have managed to almost double its share in investments attracted by the irrigation sector from about 6 percent in 2004-05, share of regions in the new Andhra Pradesh state has remained more or less unchanged at about 11 percent,” said the study “Irrigation investment in India: State level experience”, conducted by the Associated Chambers of Commerce and Industry of India (Assocham).
Interestingly, Gujarat has seen massive decline in terms of its share in total investments attracted by irrigation sector which has fallen from 25 percent in 2004-05 to just about 5 percent in 2014-15.
The public sector accounted for almost 98 percent of investment projects in irrigation.
“The government needs to bring in policy changes to improve efficiencies and encourage accountability, transparency, willingness to promote irrigation development thereby ensuring that irrigation services are more resource-efficient, responsive to farmers needs and equitable,” said Assocham secretary general D.S. Rawat.
Investments in the irrigation sector have increased at a compounded annual growth rate (CAGR) of about 11 percent during the course of past decade i.e. from about Rs.2 lakh crore in 2004-05 to over Rs.5.5 lakh crore in 2014-15, observed the study prepared by the Assocham Economic Research Bureau (AERB).
Though Tamil Nadu accounted for less than 1 percent share in total investments attracted by irrigation sector in India, the state has clocked highest CAGR of over 32 percent during the last decade followed by Jammu and Kashmir (25.5 percent), Chhattisgarh (22.6 percent), Jharkhand (20 percent) and Telangana (19 percent).
Amid prominent states, investments attracted by irrigation sector in Gujarat have declined at a CAGR of over 5 percent during the course of past 10 years.
Over 84 percent of the total irrigation projects in India remained under implementation as of 2014-15 i.e. out of the total 361 live investment projects in the irrigation sector 248 projects remained stuck and out of these 189 projects reported time/cost overrun.