Gujarat has emerged as the top investment destination for investors in new projects, with the state more than doubling its share of total investments in 2006-07. Maharashtra, the top investment destination last year, has fallen a bit in 2006-07. The state is ranked first in the study with the proposed investment of Rs 73,170 crore in 86 projects accounting for 25.8% of total investment of Rs 2,83,440 crore during FY07, followed distantly by Andhra Pradesh, Maharashtra and Tamil Nadu.
Tamil Nadu continues to maintain its lead position in attracting highest number of projects. In 2007-08, 157 new projects were sanctioned in Tamil Nadu as against 124 in the previous year. Gujarat, however, is a distant fourth in the number game with 86 projects (95) while Maharashtra bagged a higher number of projects during the year.
It bagged 142 projects (121) while Andhra Pradesh managed 105 (76). The annual study by the central bank covering projects funded by banks, financial institutions and also through external commercial borrowings and equity, expects corporate investments to be robust in 2007-08, though investment growth may be slower than that in 2006-07.
The report says, The turnaround in corporate investment, which began in 2002-03 and peaked in 2004-05, is expected to be sustained in 2007-08. According to RBI, the sharp increase in production and import of capital goods, and envisaged capacity accretion supported by improved corporate profitability, high capacity utilisation rates and robust growth in manufacturing GDP point to the continued momentum in fixed capital investment.
The total capital spending envisaged was markedly higher in 2006-07 reflecting increased investment opportunities. Infrastructure projects, in particular, power projects continue to dominate the scene.
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