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RBI expects fall in corporate investment

RBI expects fall in corporate investment

Corporate investments, which stood at Rs 263,400 crore in 2012-13, may fall in the current financial year, Reserve Bank of India (RBI) said in its monthly bulletin for September.

The capital expenditure intentions of the companies in private and joint business sectors were captured in the report.

If one adds the external commercial borrowings of Rs 66,000 crore and Rs 1,100 crore raised through equity issues, the investment intentions during FY 2013 are at an estimated Rs 263,400 crore.

At least 210 large projects with an estimated investment of over Rs 11 trillion have been delayed because of lack of statutory approvals.

So far, projects worth about Rs 2.5 trillion have been cleared by the Cabinet Committee on Investment.

Undue delay in execution has caused escalation of cost for these projects. According to an estimate by RBI, cost of projects, which were sanctioned institutional assistance during 2012-13, rose to Rs 196,300 crore from last fiscal’s Rs 191,600 crore.

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