New investment intentions plummeted by 41 per cent to Rs 2,50,900 crore in 2011-12 as compared to Rs 4,26,300 crore in the previous year in the wake of the economic slowdown,the Reserve Bank of India has said.
Industries,such as,power,metal,metal products,telecom,cement,hotel and restaurants witnessed decrease in total project cost; whereas,textile,chemical and pesticides and transport services observed an increase in total project cost in 2011-12 as against in 2010-11, the RBI said in a study on investments.
Maharashtra,Karnataka,Uttar Pradesh and Rajasthan were preferred destinations of investment and witnessed an increase in share in the total envisaged projects in 2011-12. The shares of Andhra Pradesh,Chhattisgarh and Orissa have,however,gone down.
Spatial pattern of projects proposed in 2011-12 revealed that Maharashtra was the most preferred state,capturing 18.3 per cent of total investment intentions followed by Karnataka and Uttar Pradesh.
The RBI study capturedinvestment intentions of 668 projects of worth Rs 2,12,000 crore,each with project cost of Rs 10 crore and above,sanctioned assistance by banks in 2011-12. In addition,it captured investment intentions of Rs 37,900 crore proposed by 438 companies by financing through ECBs and Rs 1,000 crore intended by 21 companies issuing domestic equity.