Odisha Among Top 3 States in 2022-23 To Attract Investment Proposals

Bhubaneswar, Aug 21: Odisha emerged as one of the top-three states in 2022-23 responsible for nearly half of the total bank-assisted investment proposals, said a recently released RBI report.

Uttar Pradesh, Gujarat, and Odisha collectively accounted for 42 percent of the total project cost of Rs 2,66,547 crore sanctioned by banks and financial institutions, compared to 26.7 percent in the previous fiscal year, 2021-22.

Of the overall capital investment made in the fiscal year 2022-23, approximately 40 percent is projected to be spent in the subsequent year, 2023-24, as outlined in the analysis by RBI.

Within this context, Odisha secured the third-highest share of 11.8 percent (equivalent to Rs 31,452 crore) of the total project cost approved by banks and financial institutions. Uttar Pradesh led the list with the highest share of 16.2 percent, followed by Gujarat with 14 percent. Maharashtra and Karnataka followed with 7.9 percent and 7.3 percent, respectively.

The central bank's analysis underscored the factors that have contributed to this trend, including a sustained increase in bank credit, higher utilization of industrial capacity, positive business sentiments, and various governmental policies designed to support investment activities. These combined conditions provided a conducive environment for private corporations to initiate new capital investments across the states.

In the fiscal year 2022-23, financial institutions extended support to a total of 547 projects, with a record-high cumulative project cost of Rs 2.66 lakh crore, in comparison to 401 projects worth Rs 1.42 lakh crore in the previous fiscal year.

Odisha's significant contribution of 11.8 percent of the total investment during the last fiscal year was derived from a relatively small number of projects, only numbering 12. This indicates that the state managed to attract a notable proportion of large corporations, surpassing Uttar Pradesh and Gujarat in this regard. Uttar Pradesh and Gujarat, on the other hand, secured bank financing for 45 and 82 projects, respectively. Maharashtra and Karnataka received bank financing for 48 and 37 projects in the fiscal year 2022-23; however, their share of the overall investment remained lower than that of Odisha. Additionally, the investment share of ten other states remained below two percent each.

After experiencing a slowdown in investment since 2013-14, Odisha has made a notable comeback by securing a share of 11.8 percent in the fiscal year 2022-23.