The Hindu Business Line : Steel, cement drive infrastructure growth to 9.6% in March

New Delhi, May 15 Increased production by steel and cement companies pulled up the index for the six infrastructure industries to 9.6 per cent in March 2008 against 10.5 per cent growth recorded in the corresponding period last year.

This, however, is the highest monthly growth rate in the core sector industries registered during fiscal 2007-08 indicating that despite a six-year low industrial production growth rate of three per cent during the month, investment activities have accelerated evident from higher consumption of core sector products.

Finished steel production grew by 21.8 per cent during the month, while cement output rose by 9.3. In terms of quantity, finished steel production stood at 6.10 million tonnes (mt) during the month against five mt a year ago. Cement output was 16.89 mt against 15.45 mt in March 2007.

Production of crude oil actually went down in March to -0.3 per cent against a growth of 3.2 per cent in March last year. Output of petroleum refinery products remained stagnant at last year’s level, while electricity generation went up by only 3.6 per cent during the month against 8 per cent in the corresponding period last year.

Coal production improved by 9.3 per cent during the month against 10.6 per cent in March last year. For full 2007-08, the six core sectors recorded a sharp fall to 5.6 per cent compared with 9.2 per cent in 2006-07.

Cement output grew by 8.1 per cent during the year against 9.1 per cent in the preceding year. Growth in petroleum refinery output also went down substantially to 6.5 per cent during the year against 12.9 per cent in 2006-07.

Electricity generation and coal production increased by 6.3 per cent and 6 per cent, respectively, against 7.3 and 5.9 per cent registered during 2006-07. Growth in finished steel production fell sharply to 5.1 per cent (13.1 per cent).

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