Investors favour Southern metros
Gujarat Chief Minister Narendra Modi might be Numero Uno in drawing industrial investments and Chief Minister Buddhadeb Bhattacharjee might be trying hard enough but states in southern India remain a major draw for investors. Drimi Chaudhuri reports.business Updated: Apr 15, 2009 00:14 IST
Gujarat Chief Minister Narendra Modi might be Numero Uno in drawing industrial investments and Chief Minister Buddhadeb Bhattacharjee might be trying hard enough but states in southern India remain a major draw for investors.
The three South Indian metros, Bangalore, Chennai and Hyderabad have got nearly three times more investments in the field of infrastructure over the past few years.
This has been discovered by a study conducted by the Associated Chambers of Commerce and Industry of India (Assocham). The recent study found that despite the several new flyovers in Delhi, Mumbai and Kolkata, along with other measures to improve infrastructure, the three southern metros are far ahead of the others. “Metros in the southern part of India, especially Bangalore, Hyderabad and Chennai, have become the most favoured destinations for infrastructure investments by corporates,” the Assocham Study on Infrastructure Projects In Metro Cities said. These cities have “outmatched urbanised cities like Mumbai, Delhi and Kolkata,” it said.
Assocham president Sajjan Jindal said the private sector has invested Rs 33,161 crore in the southern metros, compared to just Rs 14,240 crores in other Tier-I cities across the northern, western and eastern parts of the country. He pointed out that the chamber’s Investment Meter Study, titled ‘Indian Metros: Pulling Infrastructure Investment’, found that Bangalore, Chennai and Hyderabad accounted for 70 per cent of total private investment in infrastructure projects across the six metros in India.
This, despite the southern metros being less urbanised with a combined urban population of about 16 million compared to 18 million in Mumbai, 18.7 in Delhi and 15 million in Kolkata, the study revealed. “Southern cities are attracting private attention towards infrastructure projects primarily due to better state policies, availability of talent due to engineering and business institutes, high literacy rates and faster rising per capita income in southern states,” Jindal said.
The Assocham investment meter also revealed that even when the real estate sector across the country was facing problems due to a slump in demand, investments in realty projects are in the top bracket in overall infrastructure investments in the southern Tier-I cities. “Around 12 real estate projects were announced by the private sector over the last six months, amounting to Rs 12,990 crore. Bangalore had the maximum of six realty projects while Hyderabad and Chennai had five and one, respectively,” the study revealed.