The Hindu Business Line : Infrastructure industry index slips 0.6 pc in Feb

THE Infrastructure Industry Index slipped 0.6 per cent this February, pulled down by deceleration in crude oil production, refined petroleum products, coal and electricity.

Of the six key infrastructure industries, only cement and steel managed to show growth last month, according to data released by the Government on Tuesday. The decline in February assumes significance since the index grew by 12.2 per cent during the same month last year.

In fact, growth in the infrastructure sector has been on the decline after November last year. From 5 per cent growth in November 2004, the index fell to 3.6 per cent in December and 1.9 per cent in January.

Again, the Index grew lower at 4.6 per cent between April and February this fiscal against 6.5 per cent growth in the corresponding period of 2003-04.

In February, crude oil production fell by 5 per cent while refined petroleum product output was down 3.5 per cent.

Coal production was down 0.3 per cent and electricity generation was lower by 0.9 per cent last month when compared with February 2004.

Meanwhile, crude oil production slumped to 2.595 million tonnes in February this year from 2.731 mt a year ago. Refinery throughput was seen at 9.485 mt against 9.829 mt in February 2004.

Coal output at 33.7 mt was a shade lower than 33.8 mt production in the year-ago period.

India generated 45,958.4 million units of electricity in February, marginally lower than 46,382 million units the previous year.

Cement production, however, rose 1.3 per cent to 10.97 mt and steel output expanded 1.7 per cent to 3.305 mt.

In April-February this year, the growth in petroleum refined products and finished steel declined while other sectors - crude production, coal, electricity and cement - posted higher growth rates.

Crude oil production at 31.065 mt posted a 1.9 per cent growth against 0.6 per cent growth in the corresponding period last year.

Petroleum refinery products inched up 5 per cent to 108.085 mtoutput as against 8.1 per cent growth to 102.946 mt; coal production was up 6 per cent to 336.2 mt (4.9 per cent growth last year), cement output by 6.6 per cent to 119.026 mt (6.3 per cent growth last year) and electricity generation grew 5.4 per cent (4.5 per cent last year).

Finished steel production posted a lower 3.2 per cent in 36.075 mt production when compared to 12 per cent growth in 34.943 mt output.

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