Gujarat gets majority of new investment in 2007
A Business Correspondent
Gujarat was the favourite destination with respect to new
projects announced during 2007, a study by Mumbai-based ProjectsToday reveals.
The study points out that in 2007 (January to December), a total of Rs 3,53,428
crore worth of new projects investment was announced out of which Gujarat
cornered Rs 49,670 crore, or 14.1 per cent.
New investment in Gujarat was well distributed across diverse areas like thermal
power, petroleum refining, cement, ports and real estate. West Bengal with a
share of 11.3 per cent came next in order, closely followed by Andhra Pradesh
with 11.1 per cent. Arunachal Pradesh also found mention in the top 10 states
with respect to new investment announced in 2007. Thanks largely to a slew of
hydropower projects offered for development to private sector enterprise, the
state saw Rs 23,645 crore of new investment. By this metric, the hilly state
also steered ahead of Madhya Pradesh and Karnataka.
Over 60 per cent of the fresh investment in 2007 came from private sector
companies, albeit mainly from Indian companies. Foreign companies had a subdued
presence accounting for only Rs 8,291 crore of new projects that stood for a
mere 2.4 per cent of new investment in 2007. Private companies were zestful in
announcing new investment in the traditional manufacturing sector - cement,
metallurgy, textiles, paper etc.
The study also points out that while services and utilities accounted for a
respectable 27.5 per cent of the new investment last year, investors appeared to
skimp on crucial areas like transport infrastructure. During the year,
electricity (mainly generation) was also an attractive destination with 374
projects aggregating Rs 113,507 crore announced, and that too with a large
contribution from private sector companies.
As of December 31, 2007, the aggregate projects investment stood at Rs 28.76
trillion, up 14 per cent from Rs 25.19 trillion a year ago. Around 40 per cent
of this investment was under physical construction, with the larger majority yet
in the announcement or planning stages.
[January 28 - February 3, 2008]