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