New projects hit Rs. 12.3 trillion in March quarter on large orders.

Large investment plans in some sectors might have driven a record surge in new projects in the March quarter of financial year 2022-23 (Q4FY23). The value of new projects soared in the three months ended March 31 to Rs. 12.3 trillion, or more than the previous two quarters combined, according to data from capital expenditure (capex) numbers from project tracker Centre for Monitoring Indian Economy (CMIE).

New projects rose 42.6 per cent year-on-year (YoY) from Rs 8.64 trillion in Q4FY22 and 78 per cent over the Q3 figure of Rs. 6.9 trillion.

Much of this might have been driven by large orders placed in certain sectors, even as overall private sector capital expenditure plans continued to reflect a more cautious outlook amid slowing economic growth, said analysts. New projects could include government road projects as well as companies setting up factories, or otherwise enhancing capacity to provide goods or services.

BS