Investment boom unmitigated in 5 states: ASSOCHAM

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New Delhi, Aug 17: Despite fears of a slowdown of the Indian economy and the global economic system, investments continue to boom with five States-- Maharashtra, Andhra Pradesh, Orissa, West Bengal and Rajasthan-- being the top recipients of such planned investments, an ASSOCHAM Report said here.

The Report brings out that capacity expansion plans announced by Indian corporates surged to Rs 10,50,950 crore in the first six months of the current calendar year as against Rs 5,67,851 crore between August-December 2007. Out of the 24 states tracked by the Chamber Research Bureau, the top preferred investment destinations by private players were these five States in the first half of 2008.

With the race for industrialisation gaining momentum among the States, Maharashtra topped the chart with investment commitments worth Rs 1,20,065 crore in sectors like power, real estate, automobiles, ports and shipping.

Big investment plans in the State have been announced by Tata Power of Rs 25,000 crore for hiking generation capacity from 2,368 MW to 12,861 MW in the next five years and Reliance Industries plans to set up semi-conductors and other micro-technology units with an outlay of Rs 21,666 crore for the next ten years.

Andhra Pradesh being the second most mineral rich State of the country, saw the second highest investment announcements with a share of 10.11 per cent of the total planned investments. The investment proposals totalled Rs 1,06,242 crore by major industry groups like Reliance Industries, Hindujas Group, Videocon Industries Ltd and GAIL India.

Home to huge iron ore and coal reserves, Orissa emerged as the third most preferred destination with investment pronouncements worth Rs 88,902 crore for the next two to five years.

Companies like Vedanta Resources announced a capital expenditure (CAPEX) of Rs 24,000 crore for the production of 35-40 million cubic meters of gas per day.

Sterlite Industries with a CAPEX of Rs 17,000 crore announced its plan for generation of power. National Aluminum Cooperation (NALCO) made the third largest announcement in the State worth Rs 14,000 crore for setting up a greenfield aluminum and captive power plant.

Powered by huge potential in steel and manufacturing sectors, the State of West Bengal also saw big ticket announcements worth Rs 83,287 crore. Majority of these will go into steel, manufacturing and hospitality sector.

Cals Refineries plans to set up 20 million tonnes per annum capacity refinery project with a capex plan worth Rs 20,000 crore for the next six years. Shyam Group announced plans of Rs 9,900 crore for setting up an integrated steel power plant in Jamuria near Asansol town in the State.

Rajasthan attracted 7.69 per cent of the total capital outlay proclaimed across the country. The sectors that drew high investment plans related to real estate, retail, expressways and energy.

As much as Rs 68,400 crore investments have been announced by companies like Omaxe Ltd, Parsvanath Developers and Cairn India.

Apart from these investment plans, expenditures worth Rs 68,400 crore are in the offing for sectors like steel, cement, hospitality and telecom.

UNI

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