The Hindu Business Line : Cement, electricity drag down Feb industrial index

New Delhi April 5 Lower production of cement and decline in electricity generation pulled down the Index of Industrial Production (IIP) to 7.2 per cent in February 2007 as against 9.1 per cent registered in February 2006.

Cement production grew by 5.8 per cent during the period, a steep decline from 16.3 per cent growth recorded in February last year.

The electricity sector posted a growth of 3.3 per cent marking a more than 60 per cent fall from 9.1 per cent growth.

During April-February 2006-07, the index grew by 8.3 per cent compared with 6.1 per cent during the corresponding period of the previous year.

For the 11-month period, cement production increased by 9.5 per cent as against 11.9 per cent in the corresponding period last year. Similarly, electricity generation grew by 7.2 per cent as against 5.3 per cent. Crude petroleum output recovered to touch 4.9 per cent in February this year as against a negative growth of 2.1 per cent in February 2006. For the April-February period, the sector registered a growth of 5.8 per cent compared with the negative growth of 5.5 per cent in the same period of 2005-06.

Petroleum refinery production increased marginally by 6.8 per cent in February 2007 compared with 6.5 per cent in the same month last year while for the 11-month period, the sector grew by 11.8 per cent as against 1.5 per cent.

Coal output in February increased by 6.6 per cent, marginally down from 6.9 per cent. For the 11-month period, the output grew by 5.3 per cent down from 6.5 per cent posted in April-February 2005-06.

Finished steel production marked an increase of 13.5 per cent in February this year, up from 12.4 per cent in the same month last year.