Projects investment down in Q1 of current fiscal: Study

Press Trust of India / Bangalore July 23, 2009

Reflecting the recessionary trend, investments in the first quarter of April-June 2009 in India plummeted by 30.4% in terms of investments and 31.2% in terms of projects, compared to the preceding quarter, according to a study.

During this period, 1,851 projects worth Rs 1,12,319 crore were announced, of which 1,015 were in the public sector. This figure was against 2,007 and 2,057 projects in the preceding two quarters, according to 'Projects Investments in India" report for 2009-10 fiscal (April-June).

The report was released here by ProjectsToday, India'slargest online database on projects investment dedicated to track ongoing investment activities across diverse economic sectors.

Major findings of the study were that fresh investment commitments in the beleaguered real estate sector nosedived by 25 per cent during April-June 2009, compared to the preceding quarters.

In the manufacturing sector, fresh investments contracted by 14.8 per cent in the first quarter of the current fiscal, compared to the last quarter of the preceding fiscal.

Among the major sectors, baring electricity, all sectors -- manufacturing, mining, infrastructure and irrigation saw a decline in fresh investment announcements, it said.

The report also referred to project tenders, saying 11,153 project tenders were floated in January-March 2009, but only 9,099 tenders were initiated in the April-June period.

Along with the ongoing economic slowdown, the prolonged process of the general elections, which started in the last week of March 2009 and continued till the last week of May, delayed the decision making process in public sector companies on project launches and flotation of projects tenders that indicate progress in implementation, it said.