Lok Sabha Question No. 1671 (UNSTARRED), answered on 2020-09-21
Subject: Private Sector Projects
Ministry: COMMERCE AND INDUSTRY
Asked by: Sisir Kumar Adhikari

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE

## LOK SABHA

UNSTARRED QUESTION NO. 1671.

TO BE ANSWERED ON MONDAY, THE 21 ST   SEPTEMBER, 2020.

## PRIVATE SECTOR PROJECTS

## 1671.  SHRI SISIR KUMAR ADHIKARI:

Will the Minister of COMMERCE AND INDUSTRY be pleased to state: वाणिज्य एवं उद्योग मंत्री

- (a) the  amount  of  investment  made  by  private  sector  in  new  projects  since 2015-16, year-wise;
- (b) whether there is a continuous steep decline in new private sector investment in the country since the fiscal year 2018-19;
- (c) if so, the details and the reasons therefor; and
- (d) the action taken by the Government to overcome the present crisis situation in at least restoring the investment market at pre-covid-19 situation?

## ANSWER वाणिज्य  एवं उद्योग मंत्री (श्री पीयूष गोयल) THE MINISTER OF COMMERCE & INDUSTRY (SHRI  PIYUSH GOYAL)

(a) to (c): The  details  of  private  sector  investment  as  measured  by  Gross  Capital Formation  (GCF)  of  private  sector  are  available  up  to  fiscal  year  2018-19. Accordingly, the information is as under:

## Gross Capital Formation (GCF) for Private Sector

## (at current prices)

(Rs. in crore)

|                        |   2015-16 |   2016-17 |   2017-18 |   2018-19 |
|------------------------|-----------|-----------|-----------|-----------|
| Private corporations   |   1858274 |   1780588 |   1962926 |   2259386 |
| Households             |   1317599 |   1594573 |   1912803 |   2180798 |
| Total (Private Sector) |   3175873 |   3375161 |   3875729 |   4440184 |

## (at 2011-12 (constant) prices)

(Rs. in crore)

|                        |   2015-16 |   2016-17 |   2017-18 |   2018-19 |
|------------------------|-----------|-----------|-----------|-----------|
| Private corporations   |   1647761 |   1551786 |   1679033 |   1864988 |
| Households             |   1160269 |   1392741 |   1616936 |   1767225 |
| Total (Private Sector) |   2808030 |   2944527 |   3295969 |   3632213 |

Source: National Statistical Office, Ministry of Statistics & Programme Implementation.

- (d): Recently, the Government has taken various steps in addition to ongoing schemes to further boost domestic investments in India. These include the National Infrastructure  Pipeline,  Reduction  in  Corporate  Tax,  easing liquidity problems of NBFCs and Banks and various other policy measures to boost domestic manufacturing. Government of India has also promoted domestic manufacturing of goods through Make In India-Public Procurement  Policy  Order  2017,  Phased  Manufacturing  Programmes (PMP)  in  some  sectors  and,  Schemes  for  Production  Linked  Incentives under  various  Ministries,have  been  announced  for  some  products.  Plug and play options for promoting sectoral investments and boarding of a GIS enabled  land  bank  are  other  important  initiatives  undertaken  to  promote further investments.

Further,  with  a  view  to  support,  facilitate  and  provide  investor  friendly ecosystem to investors investing in India, the Union Cabinet on 03rd June, 2020 has approved constitution of the Empowered Group of Secretaries (EGoS) for Investment chaired by Cabinet Secretary with CEO, Niti Aayog, Secretary, D/o Commerce,  Secretary,  D/o  Revenue,  Secretary, D/o Economic  Affairs  and  Secretary  DPIIT  as  Members  with  following  main objective:

- i. To bring synergies and ensure timely clearances from different departments and Ministries.
- ii. To attract increased investments into India and provide investment support and facilitation to global investors.
- iii. To facilitate investments of top investors in a targeted manner and to usher policy stability and consistency in the overall investment environment.

Union  Cabinet  also  approved  constitution  of  Project  Development  Cells (PDCs) in all concerned Ministries/ Departments to fast-track investments in  coordination  between  the  Central  Govt.  and  State  Govt.  and  thereby grows  the  pipeline  of  investible  projects  in  India  and  in  turn  increases domestic  investments  and  FDI  inflow.  PDCs  have  the  following  main objectives.

- i. To create projects with all  approvals,  land  available  for  allocation  and with the complete detailed project reports for adoption/ investments by investors.
- ii. To identify issues that need to be resolved in order to attract and finalize the investments and put forth these before the Empowered Group.

********