Seven large power projects announced during June 2008, accounted for nearly 45 per cent of the total fresh investment announced across the country. In June 2008, ProjectsToday monitored 1,539 new projects entailing a total investment of approximately Rs.1,00,203 crore.
Compared with earlier two months’ figures, the total fresh investments indicate a steady rise in June 2008. However, the share of the private sector in total investment declined sharply from 73.4 per cent in April 2008 to 56.2 per cent in June 2008. Though the private sector announced more projects in June than in April and May months, the lack of high ticket projects in April brought down their share in total envisaged investment. The rising cost of funds and inputs might have forced the private promoters to adopt a wait and watch policy before committing huge investment.
The decline in number of new large scale projects by the private sector saw the share of Manufacturing sector (where traditionally India’s private sector dominates) in total investment tumble sharply from 43.2 per cent in April 2008 to 19.2 per cent in June 2008.
A Rs.4,435 crore integrated steel project of Aaress Iron & Steel and the Rs.2,000 crore steel project of Onkar Ispat, were two large projects announced in the Manufacturing sector during June 2008. Aaress Iron plans to set up a 1.5 million tpa alloy steel project at Hospet in Karnataka. Onkar Ispat plans to locate its 1 million tpa steel plant in Midnapore, West Bengal.
The current squeeze on profits margin has not prevented cement companies from announcing new capacity additions. During June 2008, five new cement projects with an aggregate capacity of 6 million tpa were announced. Among the five projects, Chettinad Cement Corporation’s 2.5 million tpa cement plant along with 30 MW coal based power unit in Gulbarga, Karnataka, was the largest.
The 51 new power projects announced in June 2008, intend to add generation capacity of around 18,000 MW, by 2012. The most ambitious power projects announced during June was by Jindal Power, a subsidiary company of Jindal Steel. The company signed an MoU with the Jharkhand government on 03 June 2008, for setting up a 2,640 MW coal based power project at a total cost of Rs.11,880 crore. The second large power project of the month was announced by Indiabulls Power Services, a subsidiary of Indiabulls Real Estate. The company plans to set up a 1,320 MW (2 x 660 MW) coal based power unit in Jharkhand, at an estimated cost of Rs.6,600 crore. The Gujarat state government -owned Omnibus Industrial Development Corporation of Daman & Diu, Dadra & Nagar Haveli, announced its intentions to set up a 1,320 MW (660 MW x 2) coal based thermal power unit in Navasari, Gujarat. It will entail an investment of Rs.6,500 crore.
In the Services sector, during June 2008, 34 new hotel projects were announced. Of these, Sarovar Hotels & Resort’s plans to set up 21 new hotels across India, was the most ambitious. After commissioning its hotels in Chennai and Bangalore, the company now plans to expand its presence in states like Delhi, Uttar Pradesh, West Bengal, Punjab, Uttarakhand, Karnataka, Maharashtra, Gujarat, Rajasthan, Assam, Tamil Nadu and Andhra Pradesh.
During June 2008, ProjectsToday also gathered information on the 97 SEZs including 57 IT/ITES SEZs notified as on May 2008. Apart from this, in the Construction sector, around 109 new commercial complexes and shopping malls were announced across India. In addition, ProjectsToday also collected information on 348 Real Estate projects, which were at different stages of their development.
|