Andhra Pradesh is now the number one state in India when it comes to accounting for country’s total banks and financial institutions funded projects in 2015-16. The state now accounts for almost 16 per cent of the total banks and financial institutions funded projects in 2015-16.
AP leads the way, followed by Gujarat, Maharashtra and Tamil Nadu, accounting together for more than 50 per cent of the projects funded by banks and financial institutions (FIs) in 2015-16. The four states are topping the game, with most prime states in the north lagging far behind.
This achievement becomes an important one in the list of many others, despite the fact that the state is trying to settle down on several issues such as capital and infrastructure.
RBI has published the report of Private corporate investments, where Maharashtra stands second, with 14.8 per cent of the projects funded by banks and FIs. Gujarat ranks third, with 14.5 percent and Tamil Nadu at 9 percent. In the year 2015-16, 41 banks and FIs have sanctioned financial assistance to 352 projects with aggregate project cost of Rs 95,400 crore.
This is also the first time in six years where there has been a monumental rise in institutional assistance for private corporate investment. This includes projects, where growth has seen a volatile spike. Funding of infrastructure projects in the areas of power, road construction and water management become the crux of this growth.
The infrastructure sector accounts for 63 per cent of such funding, and the power sector alone accounts for 46.8 per cent by banks and financial institutions. The road sector has also evidenced progress from Rs 262 crore in 2014-15 to Rs 6,964 crore in 2015-16, meaning jump by 26 times.