Home > Cement, Coal, Crude Oil & Petroleum, Infrastructure, Metals, Power, Six Core Infra > Core infrastructure sector grows 5.5% in FY ’10

Core infrastructure sector grows 5.5% in FY ’10

The core sector, which includes six major infrastructure industries and has a 26.68% weightage in the index of industrial production (IIP), recorded a 5.5% growth in FY10 over FY09. This was mainly driven by the power and coal industries, which have a high weightage.

  • Coal: Production rose sharply, particularly in the first half of 2009-10 due to poor rainfall, which lead to lower water logging in the coal-producing areas.
  • Electricity: Generation surged mainly on account of higher availability of natural gas from Reliance Industries-owned KG-D6 ba-sin. Increase in domestic supply of coal countered the fall in hydro power generation due to poor rainfall in 2009 and lower water reservoir levels.
  • Cement: Healthy demand for cement by construction and real estate sectors led to a surge in production and despatches. production grew at the highest annual rate of 10.5%. Commissioning of large cement capacity during 2009-10 supported cement production from the supply side.
  • Crude Oil: Production by private and JV companies rose sharply (by 12.6%) in FY 2010. However, they account for around 15% of total domestic production and hence only managed to counter the fall in output by Oil & Natural Gas Corporation — the largest upstream oil company in India. Ageing ONGC oil fields have been affecting its production for the last few years.
  • Petroleum Refinery Products: As refiners geared up to meet the clean fuel deadline (BS III and BS IV), there were maintenance and shutdowns for upgrade at refineries during 2009-10. This, coupled with a slump in exports in the first half of 2009-10, led to a fall in refinery output during April-March 2009-10.
  • Steel: Healthy performance of automobiles and consumer durables and a revival in construction activity in the real estate and infra-structure sectors have resulted in strong demand for steel. Finished steel production growth picked up since November 2009 and resulted in an accelerated growth rate of 4.9%.
Sector-wise Growth Rate (%) in Production
Sector                  Weight (%) Mar-09 Mar-10 Apr-Mar  2008-09 Apr-Mar 2009-10

Crude Oil

4.17

-2.30

3.50

-1.80

0.50

Petroleum Refinery Products

2.00

3.30

-0.40

3.00

-0.40

Coal                  

3.22

5.30

7.80

8.00

7.90

Electricity            

10.17

6.30

7.80

2.70

6.50

Cement                  

1.99

10.10

7.80

7.20

10.50

Finished steel (carbon)         

5.13

-1.80

9.20

1.60

4.90

Overall                     

26.68

3.30

7.20

3.00

5.50

Source: PIB

Growth in the above mentioned six core infrastructure industries reflect the healthy rise in the level of economic activity in India. IIP for April (to be released on May 12, ’10) is also expected to rise at a healthy pace.

To get details of sector-wise monthly growth of each of the six infra sectors.. click here

Advertisements
  1. No comments yet.
  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: