According to reports citing the Indian Union Budget for 2010-11, major public sector units (PSUs) of the country have planned for $60.5 billion in capital expenditures in the 2010-2011 financial year. Of the $60.5 billion estimated to be spent, much of it is likely to be for metals-intensive projects, such as the more than $26 billion earmarked for the power and petroleum industries.
The road and rail transportation and telecom sectors also rank high among the spenders, showing an increase in project spending during the 2010-2011 fiscal year, according to the Bangalore, India, office of United States-based Industrial Info Resources (IIR). Other expenditures have been identified in the shipping, urban development and steel sectors.
In the urban development segment, the Metro Rail corporations of New Delhi, Chennai and Bangalore have all planned for investments, with Delhi Metro Rail Corp., New Delhi, looking to spend about $890 million, according to IIR.
Telecom utilities Mahanagar Telephone Nigam Ltd., New Delhi, and Bharat Sanchar Nigam Ltd., New Delhi, have allocated $262 million and $3.2 billion, respectively, toward capital expenditure outlays for the 2010-2011 fiscal year.
The Steel Authority of India Ltd., New Delhi, has proposed an investment of between $2.6 billion and $2.8 billion for the time period.
In the power sector, NTPC Ltd., New Delhi, has planned to spend more than $4.8 billion during 2010-11, The figure is estimated to be 50 percent more than what has been spent in the current financial year. Combined, planned spending by power sector PSUs are likely to be in the range of $11.1 billion, compared with $8.4 billion in the current fiscal year, according to IIR.
The firms in the oil and gas sector have set aside $15.1 billion for new projects and upgrades in the 2010-2011 fiscal year. Oil & Natural Gas Corp., New Delhi, plans to infuse $5.8 billion into the sector while Indian Oil Corp. Ltd., Mumbai, is planning to spend about $2.8 billion.
Meanwhile, industrial production in India has been on the rise since the fourth quarter of 2009, recording growths of 11.7 percent and 16.8 percent, respectively, in November and December of 2009, according to IIR.
Srikanth Nyshadham
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