Home > Cement, Coal, Crude Oil & Petroleum, Infrastructure, Metals, Power, Six Core Infra > Six core infrastructure growth in April

Six core infrastructure growth in April

The index of six core industries — having a combined weight of 26.7% in the index of industrial production (IIP) — grew 5.1% compared to 3.7% in April 2009. Growth in April was lower than the 7.3% growth registered in March. However, the index has historically been lower in April than in March every year. This is well reflected by this graph . Hence, a deceleration in growth is not unusual.

 Coal: After several months of growth, coal production in India dipped marginally in April 2010 as the base figure of April last year was very high. Output had risen very sharply in the first half of 2009-10 after poor rainfall lead to lower water logging in coal-producing areas. This has resulted in a high base and growth this year may seem lower.

Electricity: A 6% growth in generation was mainly steered by higher generation recorded by all three segments — thermal (up 5.6%), hydro (14.1%) and nuclear (19%) compared to a year-ago.

Cement: Production surged to an all time high in April this year. While the commissioning of large cement capacities during 2009-10 supported production from the supply end, demand from the construction and real estate sectors persisted.

Crude oil: Higher production by private and JV majors boosted output 5.2% in April.

Petroleum refinery products: Maintenance and shutdowns for upgrade of refineries led to a fall in output in 2009-10. Thus, with a revival in global demand and prices of petroleum product, this segment recorded growth.

Steel: With a healthy demand for steel from automobiles, consumer durables and construction & realty industries, production of steel rose in April.

Sector-wise Growth Rate (%) in Production
Sector                  Weight (%) Apr-09 Apr-10
Crude Oil 4.17 -3.1 5.2
Petroleum Refinery Products 2.00 -4.5 5.3
Coal                   3.22 14.2 -2.3
Electricity             10.17 6.7 6
Cement                   1.99 11.9 8.7
Finished steel (carbon)          5.13 -1.3 4.7
Overall                      26.68 3.7 5.1
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