Industry may see high commissioning of projects: CMIE

Indian industry is likely to see a lot of capacity addition in FY10, the Centre for Monitoring Indian Economy (CMIE) said in its monthly review.

A compilation of investments schedules of companies shows that over 900 projects entailing an investment of Rs 5,00,000 crore are scheduled for commissioning in FY10. This will be the single largest annual commissioning of investments in Indian history, the report said.

There were fears of the capex boom in India coming to an end with the industry witnessing a substantial shelving of projects worth Rs 54,057 crore during July-December 2008.

Over a fifth of the total investment scheduled for commissioning belong to the electricity sector. The sector has projects worth Rs 1,05,000 crore slated to get commissioned during FY10, it said.

The other sectors that are scheduled to see a lot of investment commissioning are -- metals (Rs 61,256 crore), road transport and infrastructure (Rs 25,058 crore), software (Rs 20,076 crore), machinery (Rs 16,438 crore), construction (Rs 15,606 crore) and automobiles and components (Rs 13,578 crore).

The CMIE CapEx service captured fresh investment proposals worth Rs 4.5 lakh-crore during January 1-February 2009. This is as good as the average quarterly capturing of investments happened in the last two years.