Investment plans by cos rise 36% to Rs 1L crore

NEW DELHI: Indian firms have drawn up investment plans of close to Rs 1 lakh crore in January , marking a rise of 36% from from the year-ago period and signifying India Inc���s optimism over a turnaround. But whether the money is actually spent will depend on an uptick in the global economy.

According to government data, steel and electrical equipment makers lead the pack of corporates in drawing up investments in new capacities and expansion projects.

The department of industrial policy and promotion has received investment proposals totalling around Rs 99,958 crore in January. This marks a 65% increase over proposals filed in December.

The government reckons that if the projects fructify, they could create about 65,000 new jobs. Among the January proposals, Rs 15,654 crore worth plans are for West Bengal , followed by Rs 15,088 crore for Chhattisgarh and Rs 13,381 crore for Orissa. Andhra Pradesh, Maharashtra, Karnataka and Gujarat are the other states where investments have been planned.

With focus on infrastructure development, especially in the power sector, investment of Rs 39,157 crore has been announced for electrical equipment and Rs 38,798 crore in metallurgical industries. Among industries, electrical equipment, metallurgical industries, cement and gypsum products are the areas attracting maximum investment plans.

Though these are mere investment plans, the figures are yet another pointer that the worst may be over and the economy looks set for a rebound.

This may sound contra-intuitive after dire predictions of a long and deep slowdown, but economists and investment bankers indeed see an uptick as early as September, or latest by December. The figures also bear out the fact that the turnaround will ride domestic demand rather than overseas business.