The private sector has invested Rs 33,161 crore in three southern metros in the last four years, compared with Rs 14,240 crore in other Tier I cities, according to the Associated Chambers of Commerce and Industry (Assocham).
In its report, ‘Indian Metros: Pulling Infrastructure Investment”, Assocham said the three metros – Chennai, Hyderabad and Bangalore – received 70 per cent of the total private infrastructure investment.
Around 12 real estate projects were announced by the private sector in these cities during the last six months amounting to Rs 12,990 crore. Bangalore had the maximum with six realty projects while Hyderabad and Chennai had five and one respectively.
The three cities also attracted investments worth Rs 12,150 crore in five special economic zones.
Among others, three hotel projects are being planned in these cities with an estimated cost of Rs 5,375 crore. ITC is the major investor with a Rs 4,000 crore project in Chennai.
In the power sector, Elango Industries and Toshiba have proposed Rs 1,000 crore and Rs 415 crore projects respectively in Chennai.
According to the study, better state policies and high literacy rate attracted most of the investors. “Even though these cities are less urbanised with a combined urban population of about 16 million, they attract private infrastructure projects primarily due to better state policies, better human talent, high literacy rates, and faster rising in per capita income.”