Tresh investment fell drastically during July 2011
thus continuing the trend of the first quarter
(April-June 2011) of FY12. Overall investment
stood at Rs 14,249 crore with 634 new projects announced
during the month. Though the number of projects
announced looked no different in July (634 new start
ups) as compared to June (682 new start ups), the
investment registered a huge downfall. This may be
because, around 387 projects are still to announce their
investment intentions. projects in Jammu & Kashmir and a road widening
project in Himachal Pradesh.
The projects are:
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- Four-laning of Kiratpur-Ner Chowk section from 73.200
km to 186.500 km on NH-21 with a total length of 84.38
km on BOT (Toll) and DBFO basis under NHDP-IV in
Mandi district of Himachal Pradesh. The project is
estimated to cost Rs 1,917 crore.
- Development of stand alone ring road / bypass around
Jammu city in Jammu district of Jammu & Kashmir
under NHDP Phase-VII. The project is estimated to cost
Rs 1,200 crore.
- Development of stand alone ring road / bypass around
Srinagar city in Srinagar district of Jammu & Kashmir
under NHDP Phase-VII. The project is estimated to cost
Rs 875 crore.
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In the Hospitals sector, around 17 projects worth Rs 945.70
crore were announced, including ESIC's ultra modern
medical education complex in Gulbarga district of
Karnataka. The Rs 790-crore institute will comprise 500 beds hospital, medical, dental and nursing college. Besides, the
Gujarat Government is taking up hospital modernisation /
upgradation / greenfield projects in Junagadh, Rajkot,
Narmada, Kheda, and Mehsana districts.
Roots Corporation, a wholly owned subsidiary of Indian
Hotels Corporation (IHCL) is setting up around nine hotel
properties under its "Ginger" brand in with a total inventory
of 927 rooms across India. The hotels which are currently
under construction are coming up in Andhra Pradesh,
Chandigarh, Delhi, Haryana, Karnataka, Punjab, Rajasthan,
Tamil Nadu and, Uttar Pradesh. Meanwhile, Caddie Hotels
has completed 50 per cent work on a 5-star hotel 'DIAL
Pullman & Novotel' at IGI Airport in New Delhi.
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Fresh Investments by Sectors: July 2011 |
| Sectors |
Projects |
Rs Crore |
Share (%) |
| Manufacturing |
94 |
3,537 |
24.82 |
| Electricity |
39 |
1,095 |
7.68 |
| Services & Utilities |
491 |
9,520 |
66.81 |
| Irrigation |
8 |
80 |
0.56 |
| All Sectors |
634 |
14,249 |
100.00 |
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Low potential of the market and tax hassles are keeping the
developers away from SEZ projects. SEZ projects no longer
attracts investors. In June, a number of SEZ developers
approached the BOA for cancellation of their projects and a
few others asked for extention of completion dates.
Following the change in tax laws, most of the SEZ
developers are finding it difficult to find customers. This may be the reason that only one SEZ project was
announced during the month. Hindustan Unilever (HUL) is
once again trying to redevelop its landmark Brookefields
property in Whitefield, Bengaluru. This time, HUL intends to
co-develop the 26.5-acre property into an IT SEZ. The
company's wholly owned subsidiary - Brooke Bond Real
Estates - has called for bids for co-development. The land
will be leased to the co-developers.
On the Irrigation front, around eight projects were
announced. Among these, five projects are planned in
Chhattisgarh alone. The Chhattisgarh Government is
planning to construct Barchha anicut-cum-causeway and
Khairi anicut-cum-causeway on Agar River in Chhattisgarh.
The private sector which was holding the fort in the
previous month was pipped by the government sector in
July. The sector accounted for about 62.34 per cent share in
the total investment during the month.
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