Gujarat bags a fourth of corporate investments

[AmthaLal]

Gujarat bags a fourth of corporate investments


RBI study:As Maharashtra loses top spot, Andhra & TN shine

MUMBAI, AUGUST 15: Gujarat has cornered nearly one-fourth of the country’s total investment, becoming the top investment destination in 2006-07. Bagging projects with total investment intentions amounting to Rs 73,170 crore from 86 projects, Gujarat displaced Maharashtra, which claims to be the most industrialised state, for the top slot, according to a study on corporate investments by the Reserve Bank of India (RBI).

Gujarat formed 25.8 per cent of total investment intentions of 1,054 projects, followed distantly by projects in Andhra Pradesh (8.9 per cent), Maharashtra (8.6 per cent), Tamil Nadu (8.6 per cent) with around investment of Rs 25,000 crore each. In fact, Maharashtra has showed a decline in new investments from Rs 24,828 crore in 2005-06 to Rs 24,330 crore in 2006-07. However, investments in states like AP and Karnataka doubled during the year. Others like MP, Jharkhand and Uttarakhand also increased while UP and Chhattisgarh showed a decline.

According to the study, 46 projects located in more than one state amounted to another Rs 25,428 crore (presented in the category multi-state projects). Tamil Nadu ranked first in terms of number of new sanctions with 157 projects, followed by Maharashtra with 142 projects and Andhra Pradesh with 105 projects.

The ongoing investment boom in the country is being led by the infrastructure sector with power, telecom, road, port and airport projects attracting sizeable investments, the study added. The infrastructure group —- including IT parks and SEZ projects — accounted for the highest share of 35.9 per cent of total cost of projects amounting to Rs 1,01,744 crore.

Half of this huge proposed investment was in power projects (Rs 51,451 crore), followed by nine telecom projects (Rs 17,950 crore), eight roads, storage and water management projects (Rs 13,083 crore) and seven ports and airports projects (Rs 10,745 crore). SEZ, Industrial, Biotech and IT park projects envisaged Rs 8,515 crore. Projects belonging to the coke and petroleum products industry envisaged a capital outlay of Rs 44,083 crore (15.5 per cent of cost of all projects) from 11 projects.

According to the RBI report, there was a substantial increase in the total cost of 1,054 projects (that got assistance from banks and FIs) in 2006-07 to Rs 2,83,440 crore from Rs 1,31,299 crore envisaged from the 812 companies covered by institutional assistance in 2005-06. This was to a great extent due to the presence of 88 large projects, each with project costs exceeding Rs 500 crore and aggregating as much as

Rs 2,01,356 crore (more than two-thirds of the total project cost) compared to 49 projects amounting to Rs 74,988 crore in 2005-06.

Metal and metal products and textiles accounted for 14.1 per cent and 9.2 per cent share respectively. The maximum number of projects sanctioned assistance in 2006-07 belongs to the textile industry with 258 (on top of 158 projects in 2005-06), followed by metal and metal products projects at 130. Among service industries, projects in the hotel industry accounted for 3.9 per cent share followed by the construction industry with 3.3 per cent.

“Rising interest rates during the year lowered consumer spending growth but still did not affect the pace of investment spending, as reflected strongly in the growth in envisaged investment during the year,” the RBI report said.

If the aggregate capital expenditure in 2007-08 is to surpass the level attained in 2006-07 (Rs 2,06,460 crore envisaged collectively by companies approaching banks/ FIs or issuing domestic equity capital or contracting ECBs), the capital expenditure in 2007-08 must be above Rs 58,253 crore. “Since business conditions remain conducive to support corporate investment demand at the back of generally sound corporate balance sheets, with improved profitability and less unused capacities, such an amount of fresh investment in 2007-08 seems to be likely,” it said.

In other words, the year 2007-08 may witness an increase in corporate investment when compared to that in 2006-07, but at a decelerated pace.

All these achieved under Narendra Modi's rule.
Gujarat ki 5 crore janata kicks ass.

Where are Modi bashers now?????



Afterall Mr Tata IS smart and right.

[2gud]

It is just a matter of time when southern states - mainly AP, TN and Karnataka - will displace both Guj and Mah. Note that the investments in these states have doubled year over year.

Healthy competition!!

[chadhakya]

Originally Posted by 2gud

It is just a matter of time when southern states - mainly AP, TN and Karnataka - will displace both Guj and Mah. Note that the investments in these states have doubled year over year.

Healthy competition!!

I am fan of Mr. Modi. he is doing both job ki(king Mulla's Azz and development of the states.
other thing I realize is quality of life in Ahemadabad/Gujrat is much much better than in Bangalore/hyderabad.

no matter investment in Karnataka could be highest soon but cost of living and quality of life in Bangalore is one of the worst

[sgars]

The investrment climate in Guijarat has always been good. And i met a few Southie IAS officers of Guj Cadre way back in 97 who said that govt policies do not change with governments (3 CMs changed around that time ) unlike in say UP or TN

Anyways Modi has the reputation of being good and effecient Administrator.

However 2002 is a blot which he should try and clear

IOf you do not view things in Black and white, he could be prasied for creating (or maintaining) a Biz friendly climate but criticized in 2002 for doing nothing about the ISI den in Godhra and then not controlling the riots well.

If he wins election on basis of good admiin this time then well and good

[2gud]

I take my statement back... Till there is this terrorist appeasing congress government in power, AP can only make limited progress and can never even dream of competing with the likes of Gujarat, which have no tolerance policy for terrorist nuisance... Don't know how many prospective projects were nipped in their bud, due to today's bomb blasts... I hope the congress govt. realizes that it's vote bank politics and policy of terrorist appeasement are costing the country dear in innocent lives and lost economic oppurtunities...