Ref: MPML/PMS/098/2008
Date : May 17, 2008

Core Sector Grows 9.6% In March

"During 2007-08, the growth in the six core sectors - crude oil, cement, electricity, coal, petroleum refinery products and finished steel - was relatively low at 5.6% compared to 9.2% in 2006-07." "Electricity generation (with a high weight of 10.17% in the IIP) registered a growth of 3.6% in March 2008 compared to a growth rate 8% in March 2007. Power generation grew by 6.3% during 2007-08 compared to 7.3% in the same period of 2006-07. "

DESPITE sluggish growth in the index of industrial production (IIP) in March 2008, the six core infrastructure sectors recorded a robust increase of 9.6% during the month - thanks mainly to accelerated production in the steel and coal sectors, and to some extent in the cement sector. The core sector growth rate during March 2008, however, was slightly lower than the 10.5% growth recorded in the same month of the previous fiscal. During 2007-08, the growth in the six core sectors - crude oil, cement, electricity, coal, petroleum refinery products and finished steel - was relatively low at 5.6% compared to 9.2% in 2006-07. In March 2008, it was finished steel, which led the pack by registering 21.8% growth compared to 16.6% in March 2007. For the whole year though, finished steel production, with a weightage of 5.13% in the IIP, grew by a modest 5.1% compared to an increase of 13.1% during the same period of 2006-07. Cement output, with a relatively small weight of 1.99% in the IIP, increased by 9.3% during March 2008 compared to 5.5% in the same month of the previous fiscal. Production grew by 8.1% during April-March 2007-08 compared to an increase of 9.1% during the same period of 2006-07. Coal production, with a weight of 3.2% in the IIP, grew 9.3% in March 2008 compared to 10.6% in March 2007. Coal production grew by 6.0% during 2007-08 compared to an increase of 5.9% during the previous fiscal. All other sectors registered meagre increases during the month as well as the fiscal. Growth in petroleum (weight of 4.17% in the IIP) fell 0.3% in March 2008 compared to 3.2% growth in March 2007. It registered a growth of 0.4% during 2007-08 compared to 5.6% in the previous year. Petroleum refinery production (weight of 2.00% in the IIP) registered a growth of 0.0% in March 2008 compared to growth of 13.4% in March 2007. The sector registered a growth of 6.5% during April-March 2007-08 compared to 12.9% during the same period of 2006-07. Electricity generation (with a high weight of 10.17% in the IIP) registered a growth of 3.6% in March 2008 compared to a growth rate 8% in March 2007. Power generation grew by 6.3% during 2007-08 compared to 7.3% in the same period of 2006-07.