Mumba"> India is set to become a potential goldmine as investment announcements surged to Rs1.75 trillion in August and September, bulk of which will go to the petroleum sector, especially in states of O">
Orissa No 1 investment desitnation in India, attracts Rs558bn: ASSOCHAM study
Tuesday, October 30, 2007
Orissa No  1 investment desitnation in India, attracts Rs558bn: ASSOCHAM study

Mumbai: India is set to become a potential goldmine as investment announcements surged to Rs1.75 trillion in August and September, bulk of which will go to the petroleum sector, especially in states of Orissa and West Bengal, says the ASSOCHAM Eco Pulse Study.

The ASSOCHAM Study on 'Investment Announcements' for period of August and September 2007 found that of the total, the petroleum sector attracted maximum number of investment announcements, totaling to Rs533bn with Indian Oil Corporation (IOC) and Reliance Group, planning to mop up Rs435bn and Rs80bn, respectively.

Orissa attracted whopping investment plans of Rs558bn, especially in steel and oil refinery capacity reflecting the high investment spree by the companies in the core infrastructure sector.

 "The total investment intentions tracked in the AEP Study reflects encouraging signs of pick up in investments and acceleration in the overall growth rate", said Venugopal Dhoot, President, ASSOCHAM.

The AEP tracked investment announcements made by 70 companies in Indian private sector during months of August-September 2007 with investments plans ranging between two to ten years across various sectors like petroleum, steel, hospitality, real estate.

With major public private partnership projects in line, West Bengal is ranked second by AEP as the Indian companies made investment announcements worth Rs312bn in last two months. The major investors in the State would be Jai Balaji Industries, a Kolkata based steel company that announced capex of Rs160bn followed by Indian Oil Corporation (IOC) (Rs145bn) and DLF (Rs7bn).

Mumbai continues to remain the most favoured location by the services-based companies, which announced Rs85bn capex plans in areas of hospitality, entertainment and IT. The fast growing city of Pune attracted Rs13.34bn investments in two months period. With these two cities accounting for the total investment announcement in Maharashtra, the state was ranked third on investment radar with total planned mopup being Rs98.34bn.

 

Top ten states with investments (in Rs.Crore)

S.NO.

States

Capex

1

Orissa 

55,800

2

West Bengal

31,200

3

Maharashtra

9,834

4

Andhra Pradesh

8594

5

Kerala

6000

6

Karnataka

5045

7

Gujarat

4032

8

UP

2410

9

Rajasthan

2000

10

Chennai

1725

Delhi took a back seat and ranked 12th with very low investments announcements of Rs11.25bn despite being the hub of major economic and political activities.

With increasing energy requirements of the rapidly growing Indian economy, the petroleum sector witnessed bulk of the total investments announcements, majority of which were announced by Indian Oil Corporation with a capital announcement of Rs435bn for upgradation and expansion of technology for the next five years, followed by Reliance Industries with an investment announcement of Rs80bn and Gulf Oil Corporation Ltd. with Rs18bn, adding up to Rs533bn.

Steel and cement sectors are considered one by companies making announcements in this sector. With major expansion activity under its way, cement and steel sector attracted investments from the leading corporates totaling to Rs. 28,300 crore.

The hyper growing real estate sector saw investment announcements of Rs187.5bn. The growing number of investment announcements in these sectors showed the national needs for investments in key sectors. The major corporates investing were Essar group real estate venture, Suncity Project with a major share of investments of Rs90bn, HDIL (Rs20bn), Hines Real Estate (Rs12bn).

Hospitality sector also attracted major share of investments with tourism sector growing at an average rate of 19.97%. Automobile sector ranked fifth on account of the only investment made by Mahindra and Mahindra worth Rs64bn for setting up a research centre in Chennai for a period of next three years.
During the months of August and September, Indian Oil Corporation (IOC) made the largest investment plan of Rs435bn for a period of next five years for the purpose of expansion of capacity. The company also unveiled plans for setting up world-class petro-chemical production centres in cities of Orissa, West Bengal and Tamil Nadu. Jai Balaji, a Kolkata based company, announced an investment plan of Rs160bn for setting up cement and power plants in West Bengal making the mineral rich state a hot destination for steel industry. SAIL ranked third in terms of capital investments worth Rs123bn with an aim to increase the production of iron ore to two million tonnes of by 2010-11.

Copyright © & owned by OMIS Private Limited. All rights reserved. Designed & Developed by OMIS Private Limited.
Server hosted at Suryanandan.Net