May 20, 2006

MAHARASTRA : Regional disparity in project investment

Source: Projects Today

Madhu Chittora

Maharashtra, the most industrialised state, ranks first in terms of total envisaged projects investment. As of March 2006, the state had 2,240 projects entailing a total investment of Rs 2,04,351 crore. These investments accounted for around 9.5 per cent of the total investment planned in the country.
More than half of the total investment planned in the state is concentrated in the services and infrastructure sector. Power and irrigation projects account for 15 per cent and 17 per cent respectively. Manufacturing sector, where outstanding investment increased by a mere 1.4 per cent, accounted for around 10 per cent of the total investment planned in the state.
Although Maharashtra is the largest recipient of projects investment in the country, the investment is not evenly spread across the state. The regional disparity in the project investment since 1990 has not lessened. Around 45 per cent of total investment planned in the state is concentrated in the five coastal districts of Thane, Mumbai, Raigarh, Ratnagiri and Sindhudurg; another 10 per cent is concentrated in three western districts of Pune, Satara and Kolhapur.
Among 35 districts, five districts - Raigarh, Ratnagiri, Sindhudurg, Greater Mumbai and Pune - accounted for half of the projects planned.
Raigarh district topped the list with 120 projects worth Rs 30,264 crore. The Rs 4,800 crore SEZ project of Sea King Infrastructure, the Rs 4,000 crore Ville power project of Tata Power and the Rs 3,500 crore container terminal expansion project of JNPT are some of the large projects lined up in the district.
Pune, ranked second in total investment, has 310 projects worth Rs 26,300 crore. Unlike Raigarh, in Pune, most of the investment is in infrastructure sectors. The Rs 8,000 crore Amby Valley project of Sahara India and the Rs 1,700 crore township project of Magarpatta Township Development Company are the two large projects coming up in this district.
The Rs 13,000 crore Jaitapur nuclear power project of Nuclear Power Corporation of India Ltd and the Rs 10,000 crore Krishna irrigation project of Maharashtra Krishna Valley Development Corporation are the two largest projects currently being implemented. The Rs 16,000 crore, 4,000-mw ultra mega power project proposed by Coastal Maharashtra Mega Power Ltd is the largest project in the state.
Maharashtra is broadly divided into five regions: Konkan, Southern and Northern Maharashtra, Marathwada and Vidharbha and Northern. An analysis of projects investment across these regions reveals interesting aspects:

Konkan region, comprising Greater Mumbai, Thane, Ratnagiri, Sindhudurg, and Raigarh, attracted 1,104 new projects worth Rs 85,072 crore. The five coastal districts accounted for 42 per cent of the total investment planned in the state. Refinery, ports, power, steel and real estate projects dominate the investment map in this region.

Southern Maharashtra
With around 440 projects with a total investment of Rs 31,349 crore, the southern Maharashtra region cornered around 15 per cent of total investment. The region comprises Pune, Kolhapur, Satara, Sangli and Solhapur districts. Among these districts, Pune not only accounted for 83 per cent of total investment but also registered a healthy growth of 8.8 per cent over last year's investment statistics. The Rs 1,600 crore international airport and the Rs 1,450 crore light rail transport projects are the two mega projects proposed in Pune.

Marathwada region, comprising Ahmednagar, Aurangabad, Beed, Jalna, Hingoli, Nanded, Latur, Osmanabad and Parbhani, could manage to attract only Rs 5,128 crore worth of investment. To make matters worse, total investment registered a fall of 8.5 per cent compared with figures a year ago. The Rs 3,900 crore Godavari irrigation project is the largest project currently under implementation in the region.

Vidharbha region with a total investment of Rs 21,790 crore accounted for nearly 10 per cent of total investment. Within the region, Nagpur, Amaravati and Chandrapur districts have cornered around 70 per cent of the capex. The Rs 5,000 crore international cargo hub project and the Rs 900 crore PSF project of Indo Rama are the two large projects coming up in Nagpur. Two large cement projects of Murali Agro and Ultra Cement are coming up in the natural resource rich Chandrapur district.

Northern Maharashtra
In Northern Maharashtra, comprising Dhule, Nashik, Nadurbar and Jalagaon, total outstanding investment stood at Rs 4,172 crore with 129 projects. Dhule attracted around Rs 532 crore of investment with 401.5 per cent growth compared to last year. The cotton yarn project of Vertex Spinning Ltd worth Rs 409.36 crore is in planning stage.

[01 May 2006]

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