Odisha, Maha & Raj lead industrial investments
Received investment proposals of Rs54,842 cr, Rs4,981 cr and Rs2,487 cr respectively; As many as 19 Industrial Entrepreneurs Memoranda (IEM) filed nationwide in March with proposed investments of Rs73,333 cr and estimated creation of 46,018 jobs
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Biz Confidence Building Up
- Metallurgical, textiles and fermentation sectors recorded proposed investments of Rs55,947 cr, Rs2,634 cr and Rs2,571 cr respectively
- Further, 79 IEM with investment of Rs35,431 cr have reported implementation of IEM
- $1-trn NIP during 2022-25 boosting steel demand
New Delhi: As many as 19 Industrial Entrepreneurs Memoranda (IEM) were filed in March with proposed investments of Rs73,333 crore and estimated creation of 46,018 jobs. Odisha, Maharashtra and Rajasthan were the leading States in terms of proposed investment of Rs54,842 crore, Rs 4,981 crore, and Rs2,487 crore, respectively, according to official sources.
Investment intentions reflect preference for metallurgical industries, textiles, and fermentation, with proposed investments of Rs55,947 crore, Rs2,634 crore and Rs2,571 crore, respectively.
Fermentation was also among the top sectors in February, attracting proposed investments of Rs1,289 crore.
Further, 79 IEM with investment of Rs35,431 crore have reported implementation of IEM by the way of online filing in March, sources told Bizz Buzz.
The professional services network EY is confident that the steel sector alone can lift the entire economy: "The India steel sector has been vibrant and growing at a CAGR of about 5%-6% y-o-y. With a V-shaped demand recovery post-Covid, policy announcements made by the government across sectors including rail, road, aviation, gas pipeline, housing, and changes in global supply demand equations, has resulted in the industry's record production and growth."
Its optimism is triggered by the Central government's plan to spend $1 trillion during 2022-25 under the National Infrastructure Pipeline (NIP), which is expected to boost steel demand. "However, this must be enabled through government policies and guidelines in project governance for reducing delays, increasing steel-based construction, rationalization of mining levies and import duties, and enhancement of infrastructure capacities to make and deliver envisaged production," EY added. On its part, the government has offered a Rs6,322-crore production-linked incentive (PLI) scheme for speciality steel. It even extended the deadline for submission of applications on April 28 by over a month till May 30. It also modified the scheme for the benefit of smaller players. Industrial fermentation, which is chemical engineering that utilizes a chemical change induced by a living organism or enzyme, has also been attracting investment. It has grown with the biotech sector with which it is closely linked.
