South India more attractive for investors: Assocham

April 5th, 2009 - 3:55 pm ICT by IANS  

New Delhi, April 5 (IANS) Metros in South India are more attractive for infrastructure projects than their counterparts in the other parts of the country, an industry lobby report said Sunday.
According to the report, ‘Indian Metros: Pulling Infrastructure Investment’, released by the Associated Chambers of Commerce and Industry (Assocham), Hyderabad, Bangalore and Chennai received 70 percent of the total private infrastructure investment came to the six major metros in the country.

Kolkata, Mumbai and Delhi account for the remaining 30 percent.

“In the past four years, private sector has invested Rs.33,161 crore in three metros of South India compared to Rs.14,240 crore of infrastructure investments in other tier I cities,” the chamber said.

Assocham president Sajjan Jindal said better state policies and high literacy rate in the southern cities attract most of the investors.

“Even though these cities are less urbanised with combined urban population of about 16 million, they attract private infrastructure projects primarily due to better state policies, better human talent, high literacy rates, and faster rising in per capita income,” he said.

Despite the economic slowdown, real estate developers are ready to launch new projects in these cities, the study said, adding that 12 major real estate projects were announced in the last six months in the southern metros.

Out of the 12 projects, six went to Bangalore, when Hyderabad and Chennai got five and one respectively.

Besides, the three cities have attracted investments worth Rs.12,150 crore in five special economic zone (SEZ) projects.

The Assocham has added that three major hotel projects at an investment of Rs.5,375 crore are coming up in these cities.

The south is also moving fast in the power sector. Elango Industries and Toshiba will invest Rs.1,415 crore to set up two power projects in Chennai, the industry lobby said.

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