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03 Jul 2017 10:14 AM, Tidings Manasi Swamy

Capex activity in India remains subdued in Q1FY18

New announcements drop to Rs.1.4 trillion; project stalling surges

The investment climate in India remained subdued in the first quarter of FY18. As per the data released by CMIE’s CapEx service, only 448 new projects with an aggregate investment of Rs.1.4 trillion were announced during the quarter. This is much lower than the average quarterly investment announcements of Rs.2.2 trillion seen in the last three years.

The completion activity also remained weak, with projects worth only Rs.1 trillion being commissioned during the quarter. The largest project completed was Phase I of Jindal Steel & Power’s Angul Steel plant worth Rs.330 billion, followed by Phase I of Bangalore Metro Rail project which involved an investment of Rs.140 billion.

52 projects were scrapped between April and June 2017. The largest among these was Mithi Vardi Automic Power Plant worth Rs.600 billion, which was proposed to be set up by the government. The largest private project that got scrapped during the quarter was Posco’s 12 million tonnes steel plant in Paradip, Odisha, with a proposed investment of Rs.500 billion. The aggregate value of projects scrapped in the June 2017 quarter was a huge Rs.2.4 trillion.

Project investments (Rs.trillion)
  New Completed Stalled Revived
Jun 16 1.46 1.16 1.40 0.40
Sep 16 2.36 2.21 0.64 0.91
Dec 16 1.43 0.93 1.01 0.17
Mar 17 2.92 1.77 0.35 0.62
Jun 17 1.35 0.97 2.40 0.44
References
1. https://economicoutlook.cmie.com/kommon/bin/sr.php?kall=wshreport&tabcode=001101005000000000&repnum=2&frequency=Q&colno=1