The completion of investment projects reached to Rs 3 trillion in the quarter ending March 2024, almost doubling the figure from the previous year.
According to data analysis, project completions had averaged at Rs 1.7 trillion during the first three quarters of the fiscal year 2023-24.
The sharp increase in project completions in the March 2024 quarter has contributed substantially to the fiscal year 2023-24 ending with a record Rs 8.1 trillion worth of project completions.
Additionally, the accelerated completion in this quarter may also reflect a political flurry before the announcement of the Lok Sabha elections and the imposition of the model code of conduct.
This marks the highest completion of investment projects in any quarter so far, indicating a robust momentum in the economy's infrastructure development.
However, the quarter ending March 2024 nearly doubled this average, signifying a substantial spike in project completions. The rising trend in project completions has been observed since the fall during the Covid-19 pandemic.
This trend, initially a recovery, seems to have gained momentum even after the recovery period. The record completions in March 2024 serve as a significant spike on this rising trend.
While part of the spurt in completions in the latest quarter can be attributed to the typical March effect, where higher completions are observed, it's notable that March 2024 saw impressive completions compared to past records.
This figure is expected to increase further as new information flows in during the coming months. However, despite the impressive increase in project completions compared to past records, there's a sense of disappointment as it falls short of the expected completions.
Many of the large projects completed during March 2024 experienced substantial time and cost overruns.
The largest project completed during the March 2024 quarter was the Kakrapar Phase 2 Atomic Power Plant of the Nuclear Power Corporation of India (NPCI), with a cost of Rs 225 billion.
The Mumbai Trans Harbour Link and the Delhi International Airport Expansion Phase 3A were among other major projects completed during this period.
Transport services infrastructure dominated the completions, accounting for nearly 43 percent of the total completions. Roads projects led the way, followed by airways and railways projects.
However, the share of manufacturing in the completion of new investment projects was relatively low, accounting for only 14.4 percent of total completions.
The largest manufacturing project completed was a copper smelting unit by Kutch Copper, an Adani group company, worth Rs 100 billion.
Overall, the surge in project completions indicates a positive momentum in India's infrastructure development, but there's still room for improvement, especially in meeting deadlines and managing project costs effectively. (ANI)
