Investment in projects up by 37% in ‘08-09: Study

Investments in ongoing projects in the country during 2008-09 rose by 37 per cent year- on-year over the previous fiscal, a study conducted by ProjectsToday, an online database on project investment has indicated.

According to the survey carried out through the year and collated in the first week of April, there were 29,628 projects entailing an investment of Rs 42,35,484 crore in India on March 31. This shows an increase of 37.4 per cent in terms of investment and 29 per cent in terms of number of projects.

During the year, 12,533 new projects involving total investment of Rs 8,62,634 crore were announced. The first half, with 7,112 new projects worth Rs 5,78,912 crore fared better than the second-half when 5,421 new projects worth Rs 2,83,722 crore were announced. This translates into 23.8 per cent drop in number and 51 per cent fall in terms of envisaged investment.

The infrastructure sector continued to be the growth driver with 36.1 per cent of total investment. However, hold-ups in execution of proposed projects pulled down the implementation ratio from 44.5 per cent in March 2008 to 42.1 per cent in March 2009.

According to Mr Shashikant Hegde, CEO, ProjectsToday, expecting resumption of investment activities from Indian private promoters today is far-fetched. ProjectsToday expects public sector investment in the critical infrastructure sectors (roads, water supply, power, irrigation) to continue through 2009-10. The private sector, however, is waiting for more concrete signs of revival, it says.

Published in Hindu Business Line dated 12 April 2009