Chennai: As many as 216 central infrastructure projects were completed till Dec., amounting to Rs.2 lakh cr.
However, government’s capital expenditure has to rise 11 per cent in the March quarter to revise the budgetary estimate of FY24. The general elections may hold back completions of infrastructural projects and new investment proposals in Q4 FY24.
In order to meet the revised estimate of Rs.9.5 lakh crore for FY24, the government’s capex has to rise 11 per cent in the March quarter. In each of the three months in the quarter, the capex has to be at least Rs.92,200 crore against Rs.74,800 crore per month in nine-month period of FY24, as per ICRA.
Completion of central infra sector projects moderated in the nine-month period. Based on the data released by the government, 216 central infrastructure projects were completed till Dec., amounting to Rs.2 lakh crore. It was lower than 229 projects and Rs.2.3 lakh crore worth completions in 9M FY2023.
Based on the tardy pace of completions seen in 9M FY2024, the Central infra project completions in FY2024 are unlikely to surpass the Rs.3.1 lakh crore seen in FY23. The projects commissioned in 9M FY24 were largely concentrated in sectors like roads, railways, petroleum, and health and family welfare.
New investment proposals in Q3 FY2024 saw a muted increase. The value of new project announcements rose modestly to Rs. 2.4 lakh crore in Q3 from the 11-quarter low of Rs. 2.1 lakh crore in Q2 FY2024. The number of new investment proposals slid to the lowest level since Q2 FY2005.
