Power Sector Leads September 2024 Investments, Contributing 49.9% of Total Value: Dolat Capital Report

The power sector accounted for 49.9% of total investments in September 2024, marking the highest contribution to new investments, according to a report by Dolat Capital. Despite an overall decline in investments, the power sector saw a significant rise in value, driven by major projects such as the Solar-Wind Hybrid Power project in Dwarka, Gujarat.

New investments in the power sector surged on a year-on-year (YoY) basis to Rs 966.8 billion. This sector’s contribution stood at nearly 50% of the total investment value for the month, reflecting a strong focus on renewable energy and infrastructure. A key driver of this growth was the Solar-Wind Hybrid Power project in Gujarat, valued at Rs 250 billion.

Decline in Manufacturing Sector Investments

The manufacturing sector, contributing 17.4% of the total investments in September, witnessed a sharp 76.4% YoY decline to Rs 336.2 billion. Despite this downturn, notable investments included the solar panel project in Greater Noida, Uttar Pradesh, valued at Rs 40 billion.

Other sectors, including ports and transport infrastructure, accounted for 10.3% of the total investments. A notable project in this category was the Deepwater Port project in Ankola, Karnataka, valued at Rs 55 billion

Region-wise, Gujarat led the investment tally with a 33.1% share, followed by Maharashtra at 19.3%. Both states remained at the forefront of infrastructure development during September 2024.

The number of tenders issued in September 2024 increased by 7.9% month-on-month (MoM), driven primarily by the roads and power distribution sectors. The roads sector contributed 47.8% of the total tender value. A significant project in this sector was the development of an 8-lane elevated flyover in Ratnagiri, Maharashtra, valued at Rs 74.3 billion.

In project awards, the roads sector accounted for 26% of the total value. One of the largest projects awarded was the Balkum to Gaimukh NH-3 Connector in Maharashtra, valued at Rs 27.3 billion. The water sector accounted for 16.1% of the total value, led by the EPCC of a 300 MLD Mega SWRO Desalination Plant in Yanbu, Saudi Arabia, valued at Rs 27 billion.

Maharashtra Leads in Project Awards

Maharashtra dominated project awards in September 2024, followed by Madhya Pradesh. Major projects in the irrigation sector, including the Sitapur Hanumana irrigation project in Madhya Pradesh, valued at Rs 37 billion, contributed to the state’s strong performance in securing infrastructure projects.

Despite a 12.5% YoY decline in overall new investments, the power sector’s robust growth and the increase in tender activity indicate ongoing infrastructure expansion in key sectors across India. Further developments in roads, water, and irrigation projects highlight the government’s focus on long-term infrastructure development.