Orissa attracts maximum investment in Q4, West Bengal second

June 6th, 2008 - 12:40 am ICT by IANS  

New Delhi, June 5 (IANS) Orissa attracted 30 percent of the total investments committed in Indai in the fourth quarter of 2007-08, the highest among all states, an Associated Chambers of Commerce and Industry of India (Assocham) study released Thursday said. Of the total investment of Rs 3,252.85 billion announced across India, corporates led by the steel industry committed Rs 920.35 billion in the state during this period, the Assocham Investment Meter said.

West Bengal came in next, attracting Rs 673.61 billion, accounting for 21 percent of the total capital expenditure announced, followed by Andhra Pradesh at Rs 582.26 (18 percent), and Chattisgarh at Rs.345.87 billion.

“The mineral rich states are attracting huge investments in sectors such as steel, oil and gas and power,” Assocham president Sajjan Jindal said.

But the mineral-rich Jharkhand was not among the top five, the rear being brought up by Punjab (Rs 146.50 billion).

In Orissa, the steel sector committed Rs 450 billion, accounting for almost half the proposed investment.

The major players were Vedanta Resources, Tata Steel, Mesco Steel and Bhushan Steel.

Power attracted Rs 78.75 billion and oil and gas Rs 45.60 billion, with Gujarat Mineral Development Cooperation and Reliance Industries being the big-ticket investors in these areas.

“Home to huge iron ore and coal reserves, Orissa has emerged as a preferred destination for the players in steel producers who intend to install steel plants with aggregate capacity of 18.5 million tonne,” the study said.

Similarly, in West Bengal, oil and gas and metal drew maximum capex announcements; Rs. 200 billion has been planned in each of the sectors by the Vedanta Group and Cals Refineries.

Steel players too lined up, committing almost Rs.119 billion.

The oil and gas sector led the pack in Andhra Pradesh, accounting for 90 percent of the funds flowing to the state.

While the Hinduja Group in association with the state-owned ONGC intends to set up a refinery in Kakinada, Reliance Industries will invest in the development of Krishna-Godavari Basin.

Assam was the only north-eastern state to have any prominent investment announced over the three months ending March 2008. The power sector here is expected to receive capital outlay of about Rs 43.75 billion.

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