Investments in new projects in the country plunged in the April-June 2019 quarter, data released by the Centre for Monitoring Indian Economy showed on Monday.

As many as 304 new projects were announced during this period, with investments of Rs 43,500 crore during the three-month period, CMIE said. This was 87% lower than the value of projects announced during the April-June 2018 quarter: Rs 3.4 lakh crore.

CMIE also said that commissioning of projects dropped by 61% during the first quarter of 2019-’20, compared to the corresponding period the previous year. As many as 368 projects worth Rs 52,700 crore were commissioned during April-June 2019, compared with 557 projects worth Rs 1.3 lakh crore.

However, the organisation added that “aggregates for project completions are expected to get revised upwards with information coming in with a lag”. As many as 21 projects with investments of Rs 11,200 crore were stalled.

There was a sharp fall in investments in new projects not just in the private sector, but also by the government, Mint reported. Investment in new public sector projects fell by 77% compared to the January to March 2019 quarter and by 84% from April-June 2018. Investments in private sector projects fell even more sharply, at 83% compared to the previous quarter and 89% compared to the corresponding period in 2018.

The fall in investments could be the result of political uncertainty due to the General Elections, which were held in April and May, and transition to a new government, Mint reported. Investments had also fallen during the 2004 and 2009 Lok Sabha polls.

The figures showing sharp decline in investments have been released just days before the Union Budget on July 5.