In 2011-12, envisaged total fixed investment by large firms in new projects declined 46 percent to about Rs 2.1 trillion from Rs 3.9 trillion a year ago. Reserve Bank of India's (RBI) annual report for 2011-12 shows.

   The report, released over the weekend, further says the drop was led by the infrastructure and metals sectors.

   Envisaged investment in infrastructure declined by 52 percent to Rs 1 trillion in 2011-12 from Rs 2.2 trillion in 2010-11, led by the power and telecom sectors, says the report, quoting data collated from banks and financial institutions, adding while investment in the telecom sector has dried up, that in roads, ports and airports has also decelerated sharply.

   About infrastructure financing during 2011-12, gross bank credit to infrastructure outstanding as of April 2012 was Rs 6.2 trillion, says the report. However, the flow of bank credit to the sector has decelerated, on the back of policy delays and higher interest rates, it notes.

   Data on sector-wise gross deployment of bank credit shows that its year-on-year growth has declined to 14 percent in 2011-12 compared to 38 percent growth in 2010-11.

   Noting that over half of the envisaged corporate fixed investment in large projects has been coming from the infrastructure space since 2008-09, the report says its share, however, dropped to 48.6 percent in 2011-12 from a high 54.8 percent a year ago.