Projects investment down in Q1 of current fiscal: Study

Reflecting the recessionary trend, investments in the first quarter of April-June 2009 in India plumetted by 30.4 per cent in terms of investments and 31.2 per cent in terms of projects, compared to the preceding quareter, according to a study.    

During this period, 1,851 projects worth Rs 1,12,319 crore were announced, of which 1015 were in the public sector. This figure was against 2007 and 2057 projects in the preceding two quarters, according to 'Projects Investments in India" report for 2009-10 fiscal (April-June).    

The report was released here by ProjectsToday, India's largest online database on projects investment in India dedicated to track ongoing investment activities across diverse economic sectors.     

Major findings of the study were that fresh investment commitments in the beleaguered real estate sector nosedived by 25 per cent during April- June 2009, compared to the preceding quarter, while in the manufacturing sector, fresh investments contracted by 14.8 per cent Q1 of current fiscal, compared to the last quarter of the preceding fiscal.    

Among the major sectors, baring electricity, all sectors — manufacturing, mining, infrastructure and irrigation — saw a decline in fresh investment announcements, it said.    

The report also referred to project tenders, saying 11,153 project tenders were floated in January-March 2009, but only 9,099 tenders were initiated in April-June period.    

Along with the ongoing economic slowdown, the prolonged process of the general elections, which started in the last week of March 2009 and continued till the last week of May, delayed the decision making process in public sector companies on project launches and floatation of projects tenders that indicate progress in implementation, it said.