Infrastructure sectors such as steel, power, cement and petroleum may face critical fund shortage in coming months as the private investment line up has almost dried up with corporate capex plans in various sub-sectors taking hit in the range of 40 to 98 per cent during the last 3 months, according to an analysis of Assocham Investment Meter (AIM).
According to the AIM Study, "Investment plans in Infrastructure Sector", investments announced in infrastructure sector by corporate India during October-December 2007-08, totaled Rs 3,11,707 crore. However, it slumped to Rs 46,328 crore in the same period of the current fiscal (2008-09), registering a sharp dip by 85 per cent. The share of infrastructure sector in total investment plans during the three month period (October-December) also reduced from 32.5 per cent in FY08 to 11.3 per cent in FY09. "Most of domestic private players are unable to take up new projects in infrastructure segment, as even the prior announced investments are having difficulties due to acute shortage of funds faced by the industry," said Sajjan Jindal, president, Assocham. The number of projects announced by the domestic companies in infrastructure and sub-sectors declined from 64 in Q3FY08 to 18 in Q3FY09, registering a dip by 71.8 per cent. Among the 11 sub infrastructure sectors, only the other energy sector (including wind energy, geothermal energy, solar energy and natural gas) witness a growth of 19.3 per cent in Q3FY09 in projects with capex announcement totaling Rs 12,200 crore as against Rs 10,222 crore in the corresponding period of the previous fiscal. --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "Kences1" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/kences1?hl=en -~----------~----~----~----~------~----~------~--~---
