Project stalling rate eases to 12-yrlow

In an indication of a better investment situation, the rate at which private projects are getting stalled has fallen to its lowest levels in over a decade.

- SACHIN P MAMPATTA

This comes amid a renewed focus on the investment cycle with the Reserve Bank of India noting in its October 21 bulletin: "the time for private investment is now; delay risks loss of competitiveness."

Around 4.61 per cent of outstanding projects were stalled, according to the September-quarter numbers from the Centre for Monitoring Indian Economy (CMIE). It had touched a peak of 10.53 per cent in March 2020. It has since been in steady decline and fell below 5 per cent in 2024. A combination of a decline in the value of stalled projects, combined with a significant increase in the value of outstanding projects, has caused the overall stalling rate to come down. It was 6.72 per cent in September 2019, before the pandemic came.