Projects Investment-Q3

The 97th Survey of Projects Investment in India indicated a slowdown in private investment in Q3 of FY25. The Government sector, which carried forward its impressive increase in fresh investment of Q2 in Q3, facilitated the overall growth seen in Q3. Though, the total number of projects increased considerably, from 2,407 in Q2 to 3,292 in Q3, the total investments grew by 9.87 percent, rising from Rs 10,43,458.46 crore to Rs 11,46,427.03 crore during the same period.

Reflecting the overall slowdown, the third quarter saw a decline in the announcement of mega projects—those valued at Rs 1,000 crore or more. In all, 228 mega projects worth Rs 7,69,475.70 crore were announced in Q3/FY25 as against 232 projects worth Rs 8,40,164.96 crore announced in Q2/FY25, pointing towards a fall in private investment.
By Sector

In the third quarter of FY25, the Manufacturing sector saw the announcement of 338 new projects with a combined investment of Rs 2,39,337.50 crore, indicating a 12.44 percent increase from the previous quarter’s Rs 2,12,866.40 crore of fresh investment. As a result, the sector’s share in total investments rose marginally from 20.40 percent in Q2 to 20.88 percent in Q3.

Within this sector, fresh investment in the Basic Chemicals sector nearly doubled with a 99.28 percent rise. A Rs 9,000 crore Green Hydrogen project of Ashoka Buildcon at Begusarai, Bihar, and a Rs 8,500 crore Chlorinated Polyvinyl Chloride project of Reliance Chemicals in Gujarat were the prominent projects announced in this sector in Q3. Ambuja Concrete North, UltraTech Cement, and Dalmia Cement (Bharat) intend to add around 20 million tonne of cement capacity at an aggregate investment of Rs 11,400 crore.

The fresh investment in the Iron and Steel, surged by 261.51 percent, mostly due to the heavy investment intentions announced by ArcelorMittal Nippon (Rs 70,000 crore); JSW JFE Electrical Steel (Rs 11,890 crore) and Orissa Metallurgical Industry (Rs 6,000 crore).

Eight mega projects helped the Electronics sector to post a growth of 30.43 percent in Q3. Of this, a Rs 19,550 crore semiconductors project of Vellore Information Technology and a Rs 8,000 crore of Solex Energy were prominent ones.

Pharmaceuticals (-81.75 percent) and the Automobile sectors (-90.78 percent) were some of the prominent sectors to witness a sharp fall in fresh investment in Q3. The Q2 had seen the announcement of two mega passenger car projects worth Rs 48,473 crore by JSW Green Mobility and Toyota Kirloskar Motors.

The Mining sector experienced a downturn too, with investments decreasing by 20.75 percent, from Rs 24,836.77 crore in Q2 to Rs 19,683.64 crore in Q3. Consequently, its share of total investment dropped from 2.38 percent to 1.72 percent.

The Electricity sector, where the non-conventional power projects continued attracting private investment, demonstrated healthy growth, The aggregate investment surged by 21.90 percent, from Rs 3,69,320.04 crore in Q2 to Rs 4,50,215.79 crore in Q3. This sector’s share of total investments increased from 35.39 percent to 39.27 percent, emphasizing its preference as one of the choicest investment sectors by the private project investors.

The conventional electricity sector saw a robust 55.04 percent rise, complemented by an impressive 78.99 percent growth in Hydel Power projects. Renewable energy maintained its dominance, as fresh investment in Solar and Wind Power expanded by 11.06 percent. While the fresh investment in the conventional sector increased from Rs 91,081.58 crore in Q2 to Rs 1,41,210.14 crore in Q3, the same in non-conventional power sector increased from Rs 2,78,238.46 crore to Rs 3,09,005.65 crore.

The Private sector with 174 projects worth Rs 3,04,549 crore accounted for around two-thirds of the total investment attracted by the Power sector in Q3. On the other hand, the Government sector (State and Central) with 77 projects worth Rs 1,45,666.66 crore accounted for the balance one-third of the fresh investment

Infrastructure recorded a modest 0.76 percent rise in investments, moving from Rs 4,22,132.49 crore in Q2 to Rs 4,25,323.52 crore in Q3. As a result, its share in total investments declined from 40.46 percent to 37.10 percent. Within the Infrastructure sector, the Roadways sector registered a quarterly growth of 88.82 percent. As against 308 projects worth Rs 68,528.86 crore attracted in Q2, in the third quarter, 704 new projects worth Rs 1,29,398.32 crore were announced. The top three investors were the Public Works Department, Rajasthan (Rs 51,298.89 crore), the National Highways Authority of India (Rs 29,897.77 crore), and the Public Works Department, Maharashtra (Rs 8,431.24 crore).

Fresh investment increased handsomely in the Shipping Infra sector in Q3. The two mega projects – a Rs 20,000 crore, second Satellite Port project of Deendayal Port Authority and a Rs 19,743.88 crore expansion project of Karaikal Port helped the sector to attract Rs 45,191 crore in the form of 22 projects.

The Construction sector (comprising Commercial/Business Complexes, Real Estate, and Industrial Parks) saw fresh investment decline by 17.23 percent in Q3 on a quarter-on-quarter basis. A Rs 12,000 crore Residential Township project of Sattva City; a Rs 8,359 crore Ultra Luxury Residential Complex (Gurgaon) of DLF and a Rs 7,750 crore Residential-cum-Commercial (Panchpakhadi) project of Sugee Enterprises were the prominent projects announced in the Real Estate sector in Q3.

The Irrigation sector faced a contraction, with total projex falling by 17.03 percent from Rs 14,302.76 crore in Q2 to Rs 11,866.58 crore in Q3. Its share in total investment also decreased, from 1.37 percent to 1.04 percent. The two mega were announced by the Irrigation & CAD Department, Telangana – Sitarama Lift Irrigation Project of Rs 2,172.99 crore and by the Water Resources Department, Jharkhand – Konar Irrigation Project of Rs 1,737.77 crore.


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