Friday, June 20, 2008

Orissa state to attract huge investment

by Jo Black

India Inc. lined up investment plans of almost Rs. 920.35 billion ($23 billion) in Orissa during Jan-Mar 2008, with Rs. 450 billion ($11.25 billion) flowing to steel sector alone, state the readings of ASSOCHAM Investment Meter (AIM).

According to the AIM study on “Statewise Investments”, Orissa topped the chart claiming almost 30 per cent of the total investments announced during the last quarter of 2007-08 totaling to Rs. 3252. 85 billion ($81.3 billion).

West Bengal and Andhra Pradesh followed with the capex announcements of nearly Rs. 673.61 billion ($16.8 billion) and Rs. 582.26 billion ($14.5 billion).

The mineral rich states are attracting huge investments in sectors such as Steel, Oil & Gas and Power, says Mr. Sajjan Jindal, President ASSOCHAM.

As per the corporate announcements tracked during Q4 of 2007-08, India Inc. did not divulge any significant investment plans in the states of Kerala, Himachal Pradesh, Uttarakhand and Jammu & Kashmir.

Furthermore, Assam was the only north-eastern state to have any prominent investment announced over the three months ending March 2008.

The power sector is expected to receive capital outlay of about Rs. 43. 75 billion ($1.09 billion). The power major NTPC was the key investor disclosing its plans to invest in the state.

Home to huge iron ore and coal reserves, Orissa has emerged as a preferred destination for the players in steel producers.

They intend to invest as much as Rs. 450 billion ($11.25 billion) to install steel plants with aggregate capacity of 18.5 million tonne.

The major players having lined up capex announcements in the state were Vedanta Resources, Tata Steel, Mesco Steel and Bhushan Steel.

Other prominent sectors attracting investors’ interest in the state include the power sector and the oil & gas sector.

The industry pronounced to deploy about Rs. 78.75 billion ($1.96 billion) in power sector and Rs. 45.60 billion ($1.14 billion) in Oil & Gas. Gujarat Mineral Development Cooperation (power) and Reliance Industries (Oil & Gas) were the big-ticket investors.

 

 

 

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