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Monday, 11 Aug 2008
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Steel & Cement projects rev up new projects segment

 

The Rs.12,000 crore 6 mln tpa integrated steel projects announced by Bhushan Steel in July 2008 saw total envisaged investment in the manufacturing sector surging up by 67 per cent when compared against the June 2008 figures. The second largest project in the Manufacturing sector was announced by Daimler Hero Commercial Vehicles, a JV between Daimler AG and the Hero Group, which plans to set up a Rs. 3,000 crore truck unit with an annual capacity to produce 70,000 vehicles at the SIPCOT Industrial Park, in Chennai.

 

In July 2008, ProjectsToday monitored 1,067 new projects involving total investment of Rs.68,260 crore. Compared with June statistics, it indicates a steep fall of 31 per cent. Slowdown witnessed in both the Power and the Services sector, led to the decline in the overall investment in projects. After two months of decline, the Manufacturing sector registered positive growth in July 2008. Entailing a total investment of Rs.32,292 crore, 224 projects in the Manufacturing sector accounted for nearly 47 per cent of the total fresh investment announced in July 2008. Within the Manufacturing Sector, Steel, Cement and Automobiles sectors saw increased investment activities.

 

Sectors Projects Rs.Crore
Manufacturing
223
32,172
Mining
14
76
Electricity
42
23,617
Services Utilities
772
11,885
Irrigation
16
510
All Sectors
1,067
68,260
 

Announcement of new cement projects with more than 1 mln tpa capacity was seen in July month also. In the last four months since April 2008, around 50 new cement projects have been announced. Of these 18, with an aggregate cement manufacturing capacity of around 17 mln tpa were announced in July 2008. Among these, J K Cement's 2.7 mln tpa cement unit with an investment of Rs.800 crore in Chhattisgarh was the largest. Cement major, Lafarge India, unveiled its plans to set up 1.32 mln tpa cement clinkers in Chhattisgarh, Karnataka, Meghalaya and Rajasthan. Lafarge is also expanding its cement grinding capacity from 3 mln tpa to 4.40 mln tpa in Jharkhand.

 

In the Paper & Paper products sector, five projects were announced with a total investment of Rs.1,107 crore. Of which, Century Pulp & Paper's 500 tpd multi-layer packaging boards unit along with 43 MW coal based power unit at Lalkua, Uttarakhand was the largest project.

 

In the Power sector, 18 coal-based power projects were announced with total investment of Rs.22,945 crore. Of the projects, large ones belonged to Ispat Industries, OTPCL and Jewargi Power.

 

Ispat Industries plans to set up a 1,980 MW (330 MW x 6) coal based power unit at Govindpur-Kara, Khunti in Ranchi , Jharkhand with an investment of Rs.8,000 crore. Orissa Thermal Power Corporation (OTPCL), a JV between Orissa Hydro Power Corporation and Orissa Mining Corporation, plans to set up a 2,000 MW coal based power unit in Angul, Orissa. Jewargi Power has earmarked Rs.6,700 crore plans to set up a 1,320 MW coal based power unit at Gulbarga in Karnataka.

 

In July 2008, the Tata Group companies announced following projects:

 

 
  • Tata Power plans to set up two wind based power units each with a capacity of 50.4 MW in Jamnagar, Gujarat and in Gadag, Karnataka
  • Tata Steel plans to set up a 1,270 MW coal based power unit at Naraj, Marthapur in Cuttack, Orissa, on PPP basis.
  • Tata Steel in JV with Hindalco Industries and Tubed Coal Mining, plans to set up a 500 MW coal-based power unit in Jharkhand.

 

In the Construction sector, around 66 new commercial complexes and shopping malls were announced across India. In addition, ProjectsToday also collected information on 273 Real Estate projects, which were at various stages of development. Though most of the 273 Real Estate projects were of smaller size, the Rs.1,000 crore Commercial complex 'DLF Town Square Mall' of DLF India was the largest. The Noida mall spread over 14.2 acre will have a building of G+4 floors with 300-350 shops and a six-screen multiplex with a capacity of 1,300 seats. DLF also plans to set up two residential complexes -- 'New Town Heights' and 'Park Place' in Gurgaon, Haryana.

 

In the Services sector, during July 2008, 22 new hotels and 32 new hospitals were announced. Of these, Idea & RNP Associates' 'Taj Bengal' hotel in Kolkata comprising of 300 rooms was the largest investment proposal.

 

 
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