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Services sector leads overall growth in projects investment
By A Business Correspondent
The services sector led the ove-rall growth in projects investment, according to the latest survey on projects investment by ProjectsToday. As of June 2004, the services sector had a share of 40.3 per cent in total projects investment. Within the services industry, public sector companies maintained their concentration in roadways, railways and water supply schemes. For private entrepreneurs, favourite segments within the service sector were hospitals, business complexes, telecom and tourism.
The mining sector, after a sustained phase of lassitude, was seen revving up. As of June 2004, total investment of mining projects was 16.4 per cent higher than in June 2003. Most of the projects pertained to setting up coke plants, which in turn was in response to higher imminent demand from the metallurgical sector and also as a means to increase self-reliance in the wake of rising cost of imported metallurgical coke.
Investment under oil and gas exploration projects was also seen increasing following higher capital outlay of major players like Reliance Industries and ONGC. While Reliance has planned to develop its 14 trillion cubic feet find in the Krishna-Godavari basin, ONGC outlined massive expenditure in boosting production from the Mumbai High region.
The manufacturing sector witnessed a revival over the year. Segments like textiles, pharmaceuticals, basic metals (both ferrous and non-ferrous) and transport equipment attracted significant investor interest. The machinery sector (both electrical and non-electrical), which was bereft of appreciable investment intentions in the last couple of years, witnessed fresh investment proposals flowing in, particularly in the second half of the year ending June 2004.
The power sector did witness some significant announcements although their impact on overall projects investment was negated by fructification of mega projects and cancellations/deferment of few mega projects such as those of Damodar Valley Corporation. Overall investment in the power sector grew by 3.6 per cent to reach Rs 6,34,532 crore in June 2004.
Services sector leads overall growth in projects investment
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