India's Power Sector Attracts Investments of $48.75 Billion in the First Half of 2008

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Researched by Industrial Info Resources (Sugar Land, Texas)--A recent study by the Associated Chambers of Commerce and Industry of India (Assocham) has revealed that the country's power sector attracted $48.75 billion in investments from January to June 2008, accounting for 19.9% of the total investments of $244 billion in the country during the period. India's ambitious plan to add more than 78,577 megawatts (MW) of power generation during the Eleventh Five-Year Plan period (2007-12) has lured investments from industry majors, including Jindal India Thermal Power (New Delhi), the Lanco Group (Hyderabad, Andhra Pradesh), Reliance Power Limited (BOM:532939) (Mumbai), Sterlite Industries India Limited (NYSE:SLT) (Tuticorin, Tamil Nadu) and Tata Power Company Limited (BOM:500400) (Mumbai).

Investments of about $37.75 billion have been planned in the realty sector for projects slated for completion over the next two to five years from companies including Mahindra World City (Chennai, Tamil Nadu), Omaxe Limited (BOM:532880) (New Delhi) and Uppal Group Developers (New Delhi). Steel majors like Bhushan Steel Limited (BOM:500055) (New Delhi), JSW Steel Limited (BOM:500228) (Mumbai), Tata Steel Limited (BOM:500470) (Jamshedpur, Jharkhand) and Vedanta Resources PLC (LON:VED) (London) have lined up investments of $27 billion in this sector. The retail sector, which is growing at a rate of 25%, has attracted investments of $22.3 billion from real estate developers and corporate houses, including Parsvanath Developers Limited (BOM:532780) (New Delhi), Reliance Retail (Mumbai) and Videocon Industries Limited (BOM:511389) (Aurangabad, Maharashtra). Telecom majors Bharti Airtel Limited (BOM:532454) (New Delhi), Quippo Telecom Infrastructure (New Delhi) and Reliance Communications Limited (BOM:532712) (Mumbai) are investing about $22.28 billion.

Oil majors, including the Hinduja Group (Mumbai), Oil & Natural Gas Corporation Limited (BOM:500312) (Dehradun, Uttarakhand) and Reliance Industries Limited (BOM:500325) (Mumbai), have planned for refinery and pipeline projects worth $22.19 billion to ramp up oil production over the next two to five years. Automotive majors like Fiat India (Pune, Maharashtra), Mahindra & Mahindra Limited (BOM:500520) (Mumbai), Maruti Suzuki India Limited (BOM:532500) (New Delhi) and Tata Motors Limited (NYSE:TTM) (Mumbai) are investing $12.4 billion toward capacity expansions and research and development initiatives.

The information technology (IT) sector has secured investments of $9.9 billion software development centers and IT parks and to enhance existing facilities over the next two to 10 years. Although the construction and manufacturing sector has announced investments of $9.2 billion toward the development of aluminum smelter units, captive power plants and for expansions of metals facilities, the ports and shipping sector saw an inflow of $7.67 billion from companies like Essar Shipping Ports & Logistics Limited (BOM:500630) (Mumbai), Jindal Saw Limited (BOM:500378) (New Delhi), JSW Infrastructure (Mumbai) and the Shipping Corporation of India Limited (BOM:523598) (Mumbai).

The first half of 2008 saw investments pouring in to other sectors, as well, including $5.83 billion in hospitality, $5.22 billion in aviation, $1.85 billion in engineering, $1.5 billion in consumer durables, $1.12 billion in pharmaceuticals, and $699 million in education.

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