Power sector investments shoot to Rs.1.95 trillion in six monthsAugust 24th, 2008 - 5:42 pm ICT by IANS
New Delhi, Aug 24 (IANS) The Indian power sector has attracted Rs.1.95 trillion in investments in the first half this year - about a third of corporate sector’s total investments in this period, according to a report by an industry lobby.The study by the Associated Chambers of Commerce and Industry of India (Assocham) says that for the first six months of 2008, the power sector attracted 30.9 percent of total investments.
It was followed by realty, steel, retail and telecom, the report said, adding: “These sectors together saw capex (capital expenditure) plans worth Rs.6.33 trillion during the period.”
“With power sector on the top of priority of the policy makers, huge investments have been planned by various corporates, which include Tata Power, Sterlite Industries, Jindal India Thermal Power and the Lanco Group,” Assocham president Sajjan Jindal said.
The realty sector ranked second, attracting Rs.1.51 trillion for the next two to five years.
“Rising income levels and growing middle class have generated massive demand in the realty sector in the recent past,” the Assocham report said.
The steel sector attracted investment of Rs.1.08 trillion from companies including such majors as Vedanta Resources, Tata Steel, Bhushan Steel, JSW Steel etc.
With many developers and big corporate houses looking for their share of retail sector, which is growing at an estimated 25 percent, it attracted investment plans worth Rs.892 billion for the same period.
Corporate retailers and real estate developers like Reliance Retail, Parsvanath Developers and Videocon Industries Ltd have lined up investments to meet the burgeoning demands of the retail sector.
The telecom has emerged as another growth sector with investors going in for aggressive marketing.
“The sector attracted Rs.891 billion by major telecom players like Reliance Communication, Airtel and Quippo Telecom Infrastructure.”