Reach us: 7304553123 / mktg@projectstoday.com
Featured Articles
Featured Articles   -   New Projects in India
Monday, 12 Jul 2010
Share this on :
Fresh Investment dips in June
Thermal Power_ProjectsToday

 

Sharp fall in the investment intentions in the Manufacturing, Roadways and Thermal power sectors (both in terms of number as well as investment proposed therein) saw fresh investment taking a sharp retreat in June 2010. In all, as per ProjectsToday database, 693 startups with a total outlay of Rs 35,088 crore were announced in June. Compared with the previous month's figure, it indicated a fall of 13.7 per cent in terms of number of new projects and a 40 per cent drop in fresh investment intentions. If not for the Rs 7,700 crore Bengaluru monorail project announced by the Government of Karnataka, the fall would have been much sharper. In May 2010, a total of 803 projects entailing an investment of Rs 58,617 crore were announced.

 

Manufacturing sector, where bulk of the investment is done by the private sector, witnessed 28 per cent fall in number of startups and a whopping 69 per cent fall in fresh investment. As against 182 startups worth Rs 9,119 crore announced in May 2010, only 131 new projects worth Rs 2,818 crore were announced in this sector. In May, Pharmaceuticals, Tyres and Tubes, and Auto Ancillaries sectors had attracted a few large investment intentions. Such mega proposals were missing in June 2010.

 

Ownership
May-10
Jun-10
Projects
Rs.Crore
Share (%)
Projects
Rs.Crore
Share (%)
Government
472
16,612
28.34
381
12,349
35.19
  Central Govt
98
11,591
19.77
54
755
2.15
  State Govt
374
5,022
8.57
327
11,594
33.04
Private Sector
331
42,004
71.66
312
22,739
64.81
  Private (Indian)
319
39,854
67.99
310
22,729
64.78
  Private (Foreign)
12
2,150
3.67
2
10
0.03
Grand Total
803
58,617
100
693
35,088
100

 

A similar trend was to be seen in the Roadways also. As against 216 projects involving an investment of Rs 12,242 crore in May only 154 projects in roadways sector were announced with an investment of Rs 2,042 crore in June 2010. Delay in finalising contracts is one of the main reasons for fall in fresh investments in this sector.

 

Sectors
May-10
Jun-10
Projects
Rs.Crore
Share (%)
Projects
Rs.Crore
Share (%)
Manufacturing
182
9,119
15.56
131
2,818
8.03
Mining
15
1,555
2.65
12
146
0.42
Electricity
43
31,291
53.38
52
19,009
54.17
Services & Utilities
556
16,560
28.25
487
13,072
37.25
Irrigation
7
92
0.16
11
43
0.12
All Sectors
803
58,617
100
693
35,088
100

 

Though the Electricity sector accounted for around half of the fresh investment emanated in June 2010, it could not match its May month's performance. As a result, fresh investment in the Power sector declined by 39 per cent. The 52 new power projects entailed a total investment of around Rs 19,000 crore. Some of the large projects announced during June 2010 were:

 

 
  • Orissa Integrated Power's (a wholly owned subsidiary of PFC) 4,000 MW coal fired pit head ultra mega power unit (UMPP) near Bhedabahal village in Sundargarh district of Orissa
  • Prakash Industries' two coal based power units each with a capacity of 1,320 MW in Janjgir- Champa district of Chhattisgarh and in Anuppur district of Madhya Pradesh each with an investment of Rs 6,300 crore
  • GEMAC Energy's 1,320 MW coal based power unit in Cuddaore district of Tamil Nadu entailing an investment of Rs 6,000 crore
  • Simhapuri Energy's 1,320 MW (Phase-III) coal based power unit at Chillakur Mandal, SPSR in Nellore district of Andhra Pradesh
  • Dolby Mining & Power's 1,320 MW coal based power unit in Nagpur district of Maharashtra
  • MB Power (Chhattisgarh)'s 1,320 MW coal fired supercritical thermal power project at Birra village in Janjgir - Champa district of Chhattisgarh.

 

Some of the large projects announced in the Manufacturing sector included:

 
  • Suryadev Alloys & Power's steel plant in Tiruvallur district of Tamil Nadu with an investment of Rs 770 crore
  • Oswal Woollen Mills' 20 million mtrs per year denim fabrics unit at Pillukhedi in Rajgarh
  • GEMAC Energy's 1,320 MW coal based power unit in Cuddaore district of Tamil Nadu entailing an investment of Rs 6,000 crore district of Madhya Pradesh entailing an investment of Rs 250 crore
  • Nagarjuna Agrichem's active pharmaceutical ingredients unit with a capacity of 10,000 tpa at Visakhapatnam SEZ in Andhra Pradesh.

The social infrastructure sector witnessed state government authorities taking up 50 water supply schemes and 65 other community services projects during the month. Of these, Hyderabad Metropolitan Water Supply & Sewerage Board's comprehensive water supply scheme at Rajendranagar Circle of GHMC with an investment of Rs 299 crore was the largest.

 

The mining sector saw an announcement of 12 projects, out of which Western Coalfields' open cast coal mining at Majri in Nagpur district of Maharashtra involving an investment of Rs 125 crore was the biggest. Hindustan Copper's expansion of copper ore capacity from 7.85 million tpa to 11.00 million tpa at Malanjkhand in Balaghat district of Madhya Pradesh was also a notable project.

 

In the construction sector, 25 commercial complexes and shopping malls were announced across the country. In addition, ProjectsToday also collected information on 118 real estate project, 19 hospitals and seven hotels which were at different stages of development.

 

A major project announced in the Real Estate sector was by the Central Government owned Bharat Coking Coal. The company intends to construct 4,080 houses (miners quarters) at Karmatand Colony, Karmik Nagar Colony and Alakdiha in Jharkhand. The project comprises buildings of three storeyeS, each with 12 units with various modern amenities.

 

In the Healthcare sector, Khubchandani Hospital's upcoming project coming at Andheri in Mumbai involving an investment of Rs 215 crore was largest. The month also saw Department of Medical Education & Training, Government of Uttar Pradesh inviting pre-qualification bids for development of medical colleges along with associated hospitals at Kannauj, Jalaun, Azamgarh, Saharanpur, Banda, Safai and Jhansi was also the major announcement in hospital sector.

 

A five-star hotel in Bangalore by Brigade Hospitality Services in joint venture with Holiday Inns Hotels with 230 rooms was biggest in Hotel sector involving an investment of Rs 400 crore.

 

Of the total projects announced during June 2010, 381 projects with total investment of Rs 12,349 crore were by the State and Central Government agencies. Private entities accounted for the balance 312 projects worth Rs 22,739 crore.


 
Post Your Comments
Submit Reset   
New Password
Confirm Password