Rs 1-lakh cr Jan investment plan belies slowdown

Indian industry has turned bullish after witnessing the lows of global economic crisis, as it unveiled investment plans of close to Rs 1 lakh crore in January 2009, up 65 per cent from December.

Undeterred by global economic crisis, Indian firms mostly in steel and electrical equipment sectors, proposed investment of Rs 99,958 crore in January, official data shows.

On year-on-year basis, the increase in investment plans filed with the Department of Industrial Policy and Promotion (DIPP) in January was by 36 per cent.

Companies including GMR Industries, ABG Cement, Reliance Infrastructure, Bosh Automotive Electronics India and public sector Rashtriya Ispat Nigam submitted 259 Industrial Entrepreneurs Memoranda in January.

However, economists are e sceptical about these figures. "I am not sure these intentions will change into final project proposals. To change intention investments into actuals, it is very difficult..," ICRIER Director Rajiv Kumar said.

Financial rating firm CRISIL's Chief Economist D K Joshi felt the translation of the investment intentions into real projects would depend on the global economy.

"These are only proposed investments. It is reflection of intentions. During the current economic scenario to change the intentions into actuals... It depends how the global downturn behaves in the coming months," Joshi said.

The proposed investments are likely to create about 65,000 new jobs, government estimates suggest.

In terms of the proposed investment in January, West Bengal with Rs 15,654 crore was the leading state followed by Chhattisgarh with Rs 15,088 crore and Orissa with Rs 13,381 crore.

Electrical equipment, metallurgical industries, cement and gypsum products are the areas attracting the maximum investment plans.

With a focus on infrastructure development, especially in the power sector, investment of Rs 39,157 crore has been announced for electrical equipment and Rs 38,798 crore in metallurgical industries.

Andhra Pradesh, Maharashtra, Karnataka and Gujarat were the other states attracting investment plans.