Record Projex in March Mega power projects are back

During March 2012, the Power sector witnessed an upward movement in the investment intentions with a total of Rs 93,288 crore fresh start-ups being announced. Major highlight of the month were three big ticket projects with an aggregate investment of Rs 64,489 crore. Thus, the sector accounted for a total of 75 per cent share in the total investment announced.

As the Central Government has identified ultra mega power projects (UMPPs) as its thrust area to enhance power generation in the country, two more mega projects were announced by the NTPC and the PFC in Andhra Pradesh and Jharkhand respectively. Together, these two power projects are expected to generate around 8,000 MW of power. The third mega power project of 3,960 MW was announced by Excel Powmin that plans to set up the proposed coal based power plant in Rewa district of Madhya Pradesh. It may mentioned that, a number of mega power projects announced in the recent years are languishing because of the failure of the government to assure adequate supply of coal. Hence, it is high time the Central Government make its stand on the availability of coal clear to the power developers.

During the month, a total of 643 start-ups worth Rs 1,23,843 crore were announced, with this the fresh investment, identified by ProjectsToday, crossed Rs One lakh crore mark for the first time in the last two months. After lying low for the first two months of the calendar year, the Manufacturing sector amassed Rs 15,962 crore in 119 projects. Among the subsectors, Iron & Steel and Fertilisers sectors attracted Rs 5,868 crore and Rs 1,411 crore investment respectively.

Some of the major investment intentions announced in the Manufacturing sector were:

The Services & Utilities sector which topped the investment chart in January and February 2012 with a combined investment of Rs 20,656 crore could not hold the position in March 2012. During the month, the sector accounted for meagre 11 per cent share with a total investment of Rs 13,632 crore for 467 projects. In the Roadways sector, the NHAI announced three roadupgradation projects and a bridge project entailing an investment of Rs 3,378.74 crore. The road upgradation projects included four laning of Khed-Sinnar Road from 42.00 km to 177.00 km of NH-50 in Nashik, Maharashtra, on BOT (Toll) DBFOT basis; upgradation of two lane with paved shoulder of Rajasthan Border-Salasar section of NH-65 in Rajasthan on DBFOT basis; and four laning of Barhi-Rajauli Road from 0.000 km to 47.600 km of NH-31 in Hazaribagh district of Jharkhand on BOT basis. It has also announced Rs 1,500-crore four lane bridge over Ganga River near Sahibganj in Jharkhand connecting NH- 80 to NH-81 and four laning of NH-81 upto Katihar along with Katihar bypass and four laning of Katihar-Purnea on SH-62 in Bihar.

This apart, Swarnim Dahej Spring Desalination, a SPV formed by Hitachi (Japan), Itochu (Japan) and Hyflux (Singapore) is planning to set up a Rs 2,000- crore seawater desalination plant with a capacity of 70 million gallons per day (MGD) at Dahej SEZ in Bharuch district of Gujarat. The project will be implemented in two phases. The company has signed an MoU with the state government for the project. Narendra Modi, Chief Minister of Gujarat, described the MoU as Gujarat Government's landmark initiative for water management on World Water Day. He said "the project would prove to be a boon for a waterdeficit state like Gujarat in recycling sea water and in water conservation measures. The project would also be unique in the sense as it would be run on solar energy." On the ownership front, the private sector witnessed 301 fresh investment intentions worth Rs 69,291 crore being announced. The sector's share in the total investment announced stood at around 55 per cent. In the government sector, the Central Government was the major contributor with investment worth Rs 48,755 crore being announced.