Mumbai: Private sector capital expenditure is expected to grow by 54% in a year to reach Rs 2.45 lakh crore in 2024-25, compared to Rs 1.59 lakh crore in 2023-24, according to a study issued by the RBI.
This significant inflation due to increasing domestic demand, improving corporate profitability, sustained credit demand, business optimism and government focus on infrastructure development.
The analysis, which is based on projects sanctioned by banks and financial institutions during FY24, shows that the total cost of these projects has reached a record Rs 3.91 lakh crore, with 54% of the planned investment expected to be completed by the end of the financial year. Expected to be completed. Year. Total capital investment across various funding channels by the private corporate sector in FY2014 was Rs 4.03 lakh crore – 56.6% higher than the previous year’s planned capital expenditure.
Planned capital investment is estimated to increase from Rs 1.17 lakh crore in 2023-24 to Rs 1.68 lakh crore in 2024-25. This anticipated growth has been underpinned by an increase in funds raised through external commercial borrowings (ECBs) and domestic equity issuances.
The study also throws light on the scale and distribution of investment intentions. In FY2014, 438 private companies raised Rs 1.68 lakh crore through ECB, and 123 companies secured Rs 6,310 crore through initial public offerings (IPOs) for capital expenditure purposes. Overall, 1,505 projects were launched during the year with record investment intentions totaling Rs 5.66 lakh crore, compared to Rs 3.51 lakh crore invested in 982 projects last year.
The infrastructure sector, particularly roads, bridges and power, accounted for the largest share of the total project cost, reflecting government pressure for infrastructure development. The phasing profile of pipeline projects financed through banks, financial institutions and other channels suggests a significant increase in capital expenditure for FY20.
