Investment commitments dip for sixth straight quarter

Despite strong reform measures to attract more investments into the country amid slowing economic growth, the quarter-two 2012 registered a decline in fresh investment proposals, the sixth consecutive quarter of decline, with 293 new investment proposals amounting Rs 57,400 lakh crore compared to 735 projects worth Rs 2, 37,500 crore in previous quarter same year and previous year same quarter’s 931 projects worth Rs 2, 32,800 crore. Sectors such as mining and electricity witnessed a drop in fresh investments during the quarter under review.

Nearly 612 projects worth of about Rs 7.75 lakh crore, has been paused in Q2 2012, while in 2011 Q2, it was 474 projects worth Rs 4.74 lakh crore. The September quarter however, saw an increase of 5% in total quantum of investment with Rs 142 lakh crore from 18,348 projects, with respect to its previous year September quarter’s Rs 135 lakh crore across 18,870 projects.

Approval for the commencement of fresh projects during Q2 also slowed down by 47%, worth of about Rs 42,600 crore, putting a record of the poorest achievement since September 2007 quarter. Even though, only 104 fresh proposals amounting  Rs 37,200 crore were stalled in Q2 2012, with respect to a year-ago level of  137 projects of worth Rs 1.98 lakh crore.