ASSOCHAM moots Rs 10K crore Infra development fund for Jharkhand

ASSOCHAM moots Rs 10K crore Infra development fund for JharkhandRanchi, Jharkhand | May | 05, 2016 :: Apex industry body ASSOCHAM [ The Associated Chambers of Commerce of India ] has mooted a proposal to the Jharkhand Chief Minister Raghubar Das for creation of a one time Rs 10,000 crore infrastructure development fund (IDF) jointly by the state and central government to transform the state into a major investment destination in East India.

“With a view to cultivate a vibrant entrepreneurial ecosystem, the state government should set up a Jharkhand Entrepreneurial mission, on the public private partnership (PPP) model thereby facilitating 50 rural business and convenience hubs to provide service and facility to both rural industries and households,” suggested an ASSOCHEM study tittled ‘Revitalising Jharkhand Economy,’ submitted to the chief Minister by chamber’s president Sunil Kanoria and Secretary General, D.S.Rawat today.

“These Rural hubs will act as catalysts for harnessing entrepreneurial talent in Jharkhand, tap its rural markets and creats ample of employement opportunities across the  state, ” said Mr. Kanoria while releasing the paper at a press conference.

“The mineral rich Jharkhand has failed to attract investors both domestic and global as the outstanding investments attracted by the state have declined continously since 2010-11 till the last fiscal year of 2015-16 i.e. from 26 percent to 2.5 percent,” noted the study prepared by the ASSOCHAM Economic Research Bureau (AERB).

Though Jharkhand received an overall score of 63.09 percent and was ranked third amid states in the terms of ‘Ease of doing Business,’ however ASSOCHAM opined that state needs to overcome a number of hurdles related to infrastructure development for relising the state’s true growth potential.

With investment worth over Rs Six Lakh crore, Jharkhand accounted for about four percent share in the total outstanding investment worth about Rs 170 Lakh crore attracted by both public and private sectors from domestic anf foreign sources as of FY 2015-16, noted the study.

Manufacturing sector accounts for almost half of the total investment attracted by Jharkhand followed bt electricity ( 38 percent ), mining ( Six percent ), non financial services ( five percent ) and irrigation ( one percent).

Private sector accounts for about 67 percent of the total investentment attracted by  Jharkhand, while the state’s share works out to be 2.3 percent of the total outstanding investment undertaken by public sector across India.

On the Employment front, the ASSOCHAM study highlighte that in terms of about nine lakh job openings across India in the Last quarter of fiscal, Jharkhand despite having an advantage of significant industrial base could generate a meagre 3,234 jobs across the state during this period.

Service sector accounted for Lion’s share of over 41 percent in the terms of job openings in Jharkhand in Q4 FY16 followed by manufacturing (23.2 percent), ITEs ( 13.4 percent ), banking financial services and insurence ( 12.0 percent ) and construction and real estate ( 7.3 percent )

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