Home > Cement, Crude Oil & Petroleum, Infrastructure, Metals, Power, Six Core Infra > Six core infrastructure industries grow 5% in May’10

Six core infrastructure industries grow 5% in May’10

Growth in India’s six key infrastructure sectors slowed further in May from the figure for the previous month that was revised upwards. The index of the six core industries, having a combined weightage of 26.7% in the index of industrial production (IIP), stood at 266.9 in May and grew 5% compared to 5.4% in April.

  •  The coal sector saw the weakest performance among the set of industries. Production of Mahanadi Coalfields, one of Coal In-dia’s (CIL) eight subsidiaries, has been hit by the frequent blockades of roads and strikes by villagers of Angul district in Orissa. The subsidiary contributed 23% to CIL’s total production in FY10. CIL also states that it may miss the FY11 production target.
  •  Electricity generation in India grew at a faster pace of 6.6% YoY during April-May 2010, steered by higher hydel and nuclear power output.
  •  A surge in crude oil production by private and JV companies, including RIL, led to growth in India’s crude output. It more than compensated for the fall in production by ONGC — the country’s largest producer. ONGC’s maturing oil fields are facing a natural depletion.
  •  With improvement in refinery throughput by Indian Oil, BPCL, RIL and Essar Oil, total throughput soared 6.5% in April-May 2010 compared to a 4.4% fall a year-ago. Higher petro-product prices as well as improvement in export demand from India bolstered growth in production.
  •  Growing on a high base of last year, cement production increased at 8.7% during the first two months of the current fiscal.
  •  Increase in steel production capacity as well as a brighter demand outlook has led steel companies to produce more.
Sector-wise Growth Rate (%) in Production
Sector                  Weight (%) May-09 May-10 Apr-May   2009-10 Apr-May  2010-11
Crude Oil 4.17 -4.3 5.8 -3.7 5.5
Petroleum Refinery Products 2.00 -4.3 7.7 -4.4 6.5
Coal                   3.22 10.4 0.1 12.3 -1.4
Electricity             10.17 3 6.4 4.8 6.6
Cement                   1.99 11.8 8.6 11.8 8.7
Finished steel (carbon)          5.13 2.8 2.5 0.8 3.6
Overall                      26.68 3.2 5.0 3.5 5.1
Source of data: PIB
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