The Hindu Business Line : Cement, steel power core sector growth in April-Aug

THERE is continued good news flowing on the industrial front, with the official index of the six `core' infrastructure industries registering a healthy 6.7 per cent growth rate during April-August 2002 and 6.9 per cent in August 2002 compared to their corresponding previous year's levels of one per cent and 1.3 per cent, respectively.

The overall 6.7 per cent growth for April-August 2002 was mainly powered by cement and steel, indicative of buoyant construction activity on account of the higher budgetary allocation for the National Highways Development Project and the various tax breaks given for housing.

The impact of fiscal (read Keynesian) policy is finally beginning to be felt in the economy.

Cement production, which grew marginally from 425.90 lakh tonnes (l.t) in April-August 2000 to 430.93 l.t in April-August 2001, registered a further growth of 11.6 per cent, touching 481 l.t in the first five months of the current fiscal. Similarly, finished steel output surged by 8.9 per cent to touch 135.392 l.t during April-August 2002, from 124.371 l.t and 125.446 l.t achieved in the corresponding first five months of the preceding two fiscals.

Output of refined petro-products rose by 6.2 per cent from 407.16 l.t in April-August 2001 to 432.37 l.t in April-August 2002, while amounting to 385.49 l.t in April-August 2000. Production of crude petroleum in April-August 2002, at 138.29 l.t, too, was 6.3 per cent higher than the 130.04 l.t figure for April-August 2001 and 134.93 l.t for April-August 2000.

Production of coal during April-August 2002, at 1,268 l.t, stood 7.6 per cent higher than the 1,178 l.t figure for April-August 2001 and 1,170 l.t for April-August 2000.

The country's total electricity production during April-August 2002 was assessed at 218.894 billion units (kilowatt-hours), which was 4.1 per cent higher than the 210.261 billion units generated during the same period last year and the 204.306 billion units of April-August 2002.

Significantly, generation from hydel sources has shown a continuing decline from 34.299 billion units in April-August 2000 to 33.287 billion units in April-August 2001 and a mere 30.398 billion units during the first five months of the current fiscal.

Deficient monsoon rains and low reservoir levels have contributed to this situation.

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