Record Surge in Private and Government Investment Plans: Rs 18.9 Lakh Crore in Q1 FY25
Click to start listening
Synopsis
A remarkable spike in investment projects for the January-March FY25 quarter has been reported, reaching Rs 18.9 lakh crore, surpassing prior quarterly totals. This surge, detailed in a Bank of Baroda report, includes contributions from both private firms and government entities.
Key Takeaways
- Investment surge in Q1 FY25 at Rs 18.9 lakh crore.
- Central and state governments contributed significantly.
- Renewable electricity projects led with 37% of total investments.
- Major investments in Chhattisgarh and Odisha.
- Gujarat received the largest share in shipping projects.
New Delhi, April 20 (NationPress) There has been a remarkable increase in the value of investment projects declared during the January-March quarter of FY25, reaching Rs 18.9 lakh crore. This figure surpasses the Rs 19.4 lakh crore worth of projects reported in the first three quarters combined (April-December) of the financial year, as detailed in a Bank of Baroda report.
These announcements encompass contributions from both private corporations and the Central and state governments, culminating in a grand total of Rs 38.3 lakh crore for the entire financial year 2024-25.
The report analyzed a representative sample of companies based on their ownership type, sectors, and project locations. This sample includes projects valued at Rs 36.3 lakh crore (covering 95 percent of the overall total), with government projects (from the Centre, states, local bodies, and joint ventures) contributing Rs 11.1 lakh crore and private projects accounting for Rs 25.2 lakh crore. Among private entities, foreign companies announced investments of Rs 2.6 lakh crore, while domestic firms reported Rs 22.6 lakh crore.
Breaking down the government contributions, the Central government led the way with project announcements totaling Rs 7.4 lakh crore (representing 67 percent of the government's total), while state governments and local bodies accounted for Rs 3.7 lakh crore (33 percent). The data for states also includes projects by local bodies.
Among the projects initiated by the Central government, a staggering 91 percent are concentrated in five sectors: renewable electricity, road transport, refineries, conventional electricity, and shipping, costing Rs 6.8 lakh crore.
The remaining investments are distributed across sectors such as chemicals, steel, railways, minerals, storage and distribution, housing, electricity transmission, commercial complexes, fertilizers, health, and education. Notably, renewable electricity projects alone constitute approximately 37 percent (or Rs 2.7 lakh crore) of the total investment, anticipated to produce at least 12,555 MW of power.
Regionally, the largest investments were announced in Chhattisgarh (Rs 1.4 lakh crore) and Odisha (Rs 0.8 lakh crore). For road infrastructure, from a total allocation of Rs 1.4 lakh crore, Rs 0.67 lakh crore (47 percent) is earmarked for Rajasthan to construct 28 flyovers, while Rs 0.5 lakh crore (35 percent) will be allocated to Assam for building 1,647 km of roads, and Rs 0.25 lakh crore (18 percent) is designated for Meghalaya (136km road).
For refineries, government entities are expected to invest Rs 1 lakh crore to generate 600 MW of power. Regarding conventional electricity, out of a total investment of Rs 99,376 crore, Rs 80,000 crore will focus on electricity projects in Bihar, while Odisha and Chhattisgarh have smaller projects.
In shipping, Gujarat emerged as the primary beneficiary, receiving Rs 58,750 crore out of a total of Rs 62,120 crore, with other beneficiaries including Assam, Karnataka, Kerala, and Tamil Nadu, as stated in the report.
