September 2024: Power Sector Leads New Investments in India
In September 2024, the power sector in India saw the highest new investments, making up about 50% of the total investment value for the month, according to a report by Dolat Capital. The power sector’s investments soared to Rs 966.8 billion, driven by projects like the Solar-Wind Hybrid Power project in Dwarka, Gujarat, valued at Rs 250 billion.
Overall, new investments declined by 12.5% year-on-year to Rs 1,937.5 billion, mainly due to drops in the manufacturing and roads sectors. The manufacturing sector, which accounted for 17.4% of total investments, fell by 76.4% YoY to Rs 336.2 billion. A significant project in this sector is the solar panel project in Greater Noida, Uttar Pradesh, valued at Rs 40 billion.
Other sectors, including ports and transport infrastructure, contributed 10.3% of the total value. A notable project is the Deepwater Port project in Ankola, Karnataka, worth Rs 55 billion.
Regionally, Gujarat led with 33.1% of total new investments, followed by Maharashtra with 19.3%. The number of tenders issued in September increased by 7.9% month-on-month, driven by the roads and power distribution sectors. The roads sector contributed 47.8% of the total tender value, with a key project being the 8-lane elevated flyover in Ratnagiri, Maharashtra, valued at Rs 74.3 billion.
In terms of project awards, Maharashtra was the leader, followed by Madhya Pradesh. The roads sector accounted for 26% of the total projects awarded, with the Balkum to Gaimukh NH-3 Connector in Maharashtra, valued at Rs 27.3 billion, being a major project. The water sector made up 16.1% of the total value, with a significant project being the EPCC of a 300 MLD Mega SWRO Desalination Plant in Yanbu, Saudi Arabia, valued at Rs 27 billion. The irrigation sector, comprising 14.9% of the total value, saw the Sitapur Hanumana irrigation project in Madhya Pradesh, valued at Rs 37 billion, as the largest project awarded.
Doubts Revealed
Power Sector -: The power sector refers to the part of the economy that deals with the production and distribution of electricity. It includes power plants, electricity grids, and companies that supply electricity to homes and businesses.
Investments -: Investments are when people or companies put money into projects or businesses with the hope of making more money in the future. In this context, it means money being put into building and improving things like power plants and roads.
Rs 966.8 billion -: Rs 966.8 billion is a way to say 966.8 billion rupees, which is a very large amount of money. Rupees (Rs) is the currency used in India.
Solar-Wind Hybrid Power project -: A Solar-Wind Hybrid Power project is a type of power plant that uses both solar panels and wind turbines to generate electricity. This helps in producing more energy by using two renewable sources.
Gujarat -: Gujarat is a state in western India. It is known for its strong economy and is a major hub for industries and investments.
Maharashtra -: Maharashtra is a state in western India, known for its capital city Mumbai, which is the financial center of India. It is one of the most industrialized states in the country.
Tender issuance -: Tender issuance is the process where the government or companies invite bids from contractors to work on projects. It is like asking different builders to give their best price to build something.
Project awards -: Project awards are when a company or government decides which contractor will do the work on a project. It is like choosing the best builder to start building a new road or power plant.
