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backThe period FY15-19 saw a sharp drop in a number of projects completed. As against 16,823 projects completed in FY10-14, 11,440 projects were commissioned in FY15-19. However, on the brighter side, the total investment represented by the completed projects in FY15-19 indicated a growth of 36.5 percent. In FY10-14 a total of Rs 14,78,204 crore projex got commissioned. This amount increased to Rs 20,17,043 crore in FY15-19.

An interesting finding of the 74th Survey of Projects Investment in India was that despite the fall in a number of projects completed across major sectors in the FY15-19 period, in terms of investment positive growth was seen across these sectors. The Manufacturing, Electricity and Infrastructure sectors accounted for around 95 percent of the total projex completed during FY15-19.

The Electricity sector, which was in the news for a large number of projects purging, and low fresh announcements, recorded an impressive growth of 67 percent in projects commissioning between FY10-14 and FY15-19. In all, 831 projects worth Rs 6,40,685 crore were completed in FY15-19 as against 921 projects worth Rs 3,84,181 crore in FY10-14. Coal/Lignite-Based Power industry saw completion of 87 projects worth Rs 4,16,410 crore in FY15-19. The major projects to be completed in the latest five years were Sasan Ultra Mega Power Project worth Rs 20,000 crore in Madhya Pradesh, Coal-Based Power (Kudgi) Project-Stage-I worth Rs 15,166 crore and Koradi Thermal Power Expansion Project worth Rs 14,026 crore.

The non-conventional power also saw a jump with a fructification ratio of 173.67 percent in FY15-19 against FY10-14. A total of 635 projects worth Rs 1,35,006 crore were commissioned in FY15-19, compared to 557 projects worth Rs 49,332 crore. Solar-based power, wind-based power and waste-based power accounted for majority of the projects fructified.

Some of the major solar projects completed were SECI’s 1,000 MW solar photovoltaic power in Karnataka worth Rs 8,000 crore, SunEdison Energy India’s Panyam Solar Power Project worth Rs 5,000 crore and Adani Green Energy’s Kamuthi Solar Power Project worth Rs 4,536 crore.

The Infrastructure sector (comprising Social and Transport) saw fructification of investments worth Rs 6,68,058 crore in FY15-19, an increase of 27.9 percent vis-à-vis FY10-14 period. In all, 7,415 projects worth Rs 6,68,058 crore were completed in FY15-19. In the previous five-year tenure (FY10-14), 10,656 projects worth Rs 5,22,354 were completed.

An impressive 33 percent growth was seen in total investment materialised in the Roadways sector. In all, 1,477 projects worth Rs 2,18,572 crore were commissioned in FY15-FY19. As many as 354 projects worth Rs 17,706 crore were completed by the Public Works Departments (PWD) of various states. NHAI, the nations highway builder, commissioned 65 projects with an aggregate cost of Rs 30,617 crore.

Reflecting the increased pace of highway building, the per day highway building figure jumped up from 12 km in 2013-14 to 27 km in 2018-19.

Some of the major projects completed in FY15-19 were — Agra-Lucknow Access Controlled Expressway worth Rs 15,000 crore, and Eastern Peripheral Expressway (Kundli-Ghaziabad-Palwal) worth Rs 7,558 crore.

The Railways was one of the few sectors where along with investment, the number of projects completed also increased between two lustrums, FY10-14 and FY-15-19. In the latest five-year period, the sector saw commissioning of 146 projects worth Rs 98,281 crore.

The North Eastern Railway and South Western Railway executed 16 projects each with an aggregate cost of Rs 11,390 crore. The Chennai Metro Rail Project-Phase I worth Rs 14,600 crore, and Bangalore Metro Rail Phase I worth Rs 13,845 crore were some of the major projects commissioned in this segment.

To provide last-mile broadband connectivity, the Union Government took up BharatNet project. Under this programme, the National Optic Fibre Network Phase-I worth Rs 12,000 crore was completed in 2018.

The Manufacturing sector saw completion of 2,922 projects worth Rs 6,39,158 crore commissioned in FY15-19 as against 4,868 projects worth Rs 5,23,681 crore in FY10-14. Though it indicated a growth of 22 percent between the two lustrums and accounted for 31.7 percent of the total projex fructified in FY15-19, the fall in projects completed from 4,868 in FY10-14 to 2,922 in FY15-19 is the worrying part of the growth story. No doubt, the number of projects completed will increase as the news on completion of projects comes with a time lag of around 3 to 6 months.

Within the Manufacturing sector, the Petrochemicals sector saw completion of 10 projects worth Rs 8,42,68 crore in FY15-19 from just five projects worth Rs 3,450 crore materialised in FY10-14. A major project commissioned in this sector was the Rs 30,000 crore Dahej Petrochemical Complex (Gujarat) of ONGC Petro Additions. Refinery Off-Gas Cracker at Jamnagar (Gujarat) worth Rs 16,000 crore and Gas Cracker at Dibrugarh (Assam) worth Rs 9,833 crore were the other major projects to be completed in FY15-19.

A total of 136 projects with investment worth Rs 49,112 crore were commissioned in the Mining sector during FY15-19 as against 183 projects worth Rs 31,023 crore in FY10-14. Within this sector, 25 projects worth Rs 10,704 crore were completed in the Coal & Lignite Mining sector in FY15-19, up from Rs 6,530 crore projects commissioned in FY10-14.

Government leading in projex fructification

The step-up in the pace of project execution by the government in the Infrastructure space during FY15-19 saw its share in total projex fructification moving up from 38.7 percent in FY10-14 period to 46.5 percent in FY15-19.

A total of 3,813 government projects with an aggregate capex of Rs 9,37,061 crore were successfully executed in FY15-19. A major project completed in the latest five-year period was the Indian Oil Corpn’s 15 million tpa Paradip Refinery project worth Rs 34,555 crore in Odisha.

Issues such as finance constraints, GST, RERA, etc slowed down the project execution pace in the Private sector in FY15-19. As a result, the average project implementation ratio came down sharply from 41.7 percent in FY10-14 to 35.0 percent in FY15-19. The slow rate of conversion of projects from the planning stage to under-execution stage resulted in fall in a number of projects completed.

During FY15-19, in all, 7,627 private projects with a total spending of Rs 10,79,982 crore were commissioned. Against these figures, in FY10-14 a total of 12,077 projects with a cumulative investment of Rs 9,05,883 crore were completed.

Gujarat & Maharashtra, the toppers

Over the past 10 years, Gujarat and Maharashtra have remained the top two states in terms of total projex completed. In Maharashtra, 2,490 projects with a cumulative investment of Rs 1,93,068 crore were completed in FY15-19. In Gujarat, 1,406 projects worth Rs 1,94,003 crore were commissioned during the same period.

Together, the two top states accounted for 29 percent of the total projex materialised in FY10-14. However, with the increase in projex fructifications in states like Karnataka, Tamil Nadu, Madhya Pradesh, Uttar Pradesh and Odisha, the share of the top two states came down to around 19 percent in FY15-19.

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