Private sector has invested Rs 33,161 crore in the three metros of South India in the last four years compared to Rs 14,240 crore of infrastructure investments in other tier I cities in the country, according to a report, ‘Indian Metros: Pulling Infrastructure Investment’, released by the Associated Chambers of Commerce and Industry (Assocham).
The three metros including Chennai, Hyderabad and Bangalore received 70 per cent of the total private infrastructure investment came to the six major metros in the country.
These metros are more attractive for infrastructure projects compared to other metros in the country, according to the chamber.
Around twelve projects were announced by the private sector during last six months in real estate of these cities amounting to Rs 12,990 crore. Bangalore had maximum of six realty projects while Hyderabad and Chennai had five and one, respectively.
Besides, the three cities have attracted investments worth Rs 12,150 crore in five special economic zone (SEZ) projects. The investments in SEZ projects had the share of 36 per cent in total private infrastructure investment in Southern metros.
Three hotel projects are being planned by the hotel industry majors in the Tier I cities in South India, costing Rs 5,375 crore. ITC is the major investor planning a Rs 4,000 crore project in Chennai.
Two power projects have been planned in Chennai worth Rs 1,415 crore by Elango Industries (Rs 1,000 crore) and Toshiba (Rs 415 crore).
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The study noted better state policies and high literacy rate in the southern cities attract most of the investors.
“Even though these cities are less urbanised with 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.”