Investment proposals drop to Rs 3.57 lakh crore sequentially in June quarter, CMIE estimates

India recorded a sequential fall in proposals for adding new capacities in the industrial, infrastructural and services sectors during the April-June period, according to the Centre for Monitoring Indian Economy.

The quarter ended June 30 saw proposals for investments totaling Rs 3.57 lakh crore - lower than Rs 5.91 lakh crore made in the previous quarter. The average investment proposals in the preceding three quarters was around Rs 3.2 lakh crore.

CMIE, however, expects the estimate of new investment proposals for April-June will be revised upwards as more information flows in.

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New investment proposals during the quarter were concentrated in the  Adani group, adding up to Rs 1.08 lakh crore and accounting for over 30 percent of all investments, CMIE said.

The two largest projects announced by Adani Group are the Rs 60,000-crore Maharashtra Pumped Storage Project for green power and the Rs 44,600-crore, 10-GW solar power project in Andhra Pradesh, it said. Renew Power, meanwhile, had a 24.5 percent share in total investment announcements made during April-June.

In all, there were 23 announcements for power projects, totaling to a proposed investment of Rs 2.06 lakh crore and accounting for 57.7 percent of new project announcements in April-June, CMIE said.

During the quarter, the share of private sector proposals rose to 90.8 percent of the total.

Around 42 percent of the total new investments proposed were made at the World Economic Forum at Davos.