NGO are non- interest groups who work for political and social cause. In an IB report some NGO’s are accused of stalling the economic growth in the name of environmental protection.
NGO’s association lead to stalling of projects. They stage a protest against the ongoing projects. Example Narmada dam, sardar sarovar dam and kundankulam dam.
Filing of petition in the court and creating a deadlock even after getting clearances from respective ministries. As a result of this projects get stopped. This lead to freezing of capital. It increases interest burden and eventually the debt.
This also reduces the chance of employment generation and hence the holistic development of the area. This also affect the balance sheet of both corporates and banks . This led to twin balance sheet syndrome which creates problem for the economy. It also affect the investment climate and hence the ease of doing business gets affected.
NGO’s also try to mislead the natives by giving wrong information. They pursue workers to indulge in strikes against management leading to loss of precious man hours and production.
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