Number of financed private projects in Gujarat plateaued over last 2 yrs: RBI bulletin

In comparison, there is an increase in number of projects in larger states like Uttar Pradesh, Maharashtra, Karnataka and Odisha, that have got similar support from banks and FIs.

The data, which is part of an article titled “Private Corporate Investment: Performance and Near-term Outlook”, also reveals that the highest number of private projects to get bank funding in Gujarat in a single financial year was in 2016-17 at 102. The authors of this article are from the government’s Department of Statistics and Information Management. The RBI bulletin, carrying the article, stated the study focused exclusively on projects that received funding from banks, FIs, ECBs (external commercial borrowing), and IPOs.

Projects costing Rs 10 crore and more, and where majority ownership lies with private companies, have been taken into account. Projects with central or state government majority holding and those initiated by trusts and educational institutions have also been excluded from the scope of the study. A total of 547 projects across the country got assistance from banks and FIs during 2022-23 with a record-high total project cost of Rs 2.66 lakh crore, compared to 401 projects with a project cost of Rs 1.42 lakh crore in 2021-22.

“The state-wise distribution revealed that the top five states viz., Uttar Pradesh, Gujarat, Odisha, Maharashtra, and Karnataka, together account for 57.2 per cent share in total project cost during 2022-23, higher than 43.2 per cent share during 2021-22. In 2022-23, Uttar Pradesh accounted for the highest share (16.2 per cent) in the total cost of projects sanctioned by banks and FIs, followed by Gujarat, Odisha, Maharashtra, and Karnataka,” states the bulletin.

“The share of Uttar Pradesh and Odisha in the total cost of projects improved significantly from the previous year as well as the average share recorded during the period 2013-14 to 2020-21,” it added.  However, if only the number of projects are taken into account, then Gujarat has the highest number of projects that have received funding from banks during this period.