The investment climate in India has remained subdued in the first quarter of FY18. As per the data released by CMIE's CapEx service, only 448 new projects with an aggregate investment of Rs 1.35 lakh were announced during the quarter. This is significantly lower than 2.91 lakh crore of investment projects announced in the March quarter.
The completion activity also remained weak, with projects worth only Rs 97,281.2 crore being commissioned during the quarter compared to Rs 1,77,038.4 in the last quarter. The largest project completed was Phase I of Jindal Steel & Power's Angul Steel plant around Rs 33,000 crore, followed by Phase I of Bangalore Metro Rail project which involved an investment of Rs 1,4000 crore.
52 projects were scrapped between April and June 2017. The largest among these was Mithi Vardi Automic Power Plant worth Rs 60,000 billion, which was proposed to be set up by the government.
Cost of projects in Rs lakh crore
The largest private project that got scrapped during the quarter was Posco's 12 million tonnes steel plant in Paradip, Odisha, with a proposed investment of Rs 50,000 billion. The aggregate value of projects scrapped in the June 2017 quarter was as huge as Rs 2.39 lakh crore.