Infrastructure growth retards

Drop in power generation and steel and cement output drag down overall sectoral growth to 6.2 per cent in June.

A sharp slowdown in electricity generation as well as steel and cement production pulled down overall infrastructure growth to 6.2 per cent in June 2006 compared to 8.3 per cent in the same month last fiscal.

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Cumulative growth in the six core sectors would have been lower but for the rebound in crude production and petroleum refining. The two sectors rose 1.2 per cent and 10.4 per cent, respectively, from 0.3 per cent and a negative growth of 1.1 per cent in June 2005, as per government data released on Wednesday.

Coal production also rose strongly by 11.9 per cent in June this year as against 3.4 per cent registered a year ago, but growth in electricity generation declined to 4.5 per cent from 9.4 per cent in June 2005.

Growth in steel production was lower at 5.6 per cent in June this year compared to 12.6 per cent in the same month of last fiscal. Cement production recorded a slower growth rate of 11.2 per cent in June 2006 as against 16.6 per cent in the same month last fiscal.

Crude oil production during April-June this year rose 0.2 per cent as against a decline of 1.2 per cent in the same period last year. Refining throughput was higher by 11.8 per cent as compared to a negative 4.9 per cent last fiscal.

Coal production grew by the same rate of 7.6 per cent in April-June 2006-07, while power generation rose by a slower 5.2 per cent from 7.5 per cent last year.

Cement production rose by 9.7 per cent compared to 13.9 per cent, while steel production grew by 6.8 per cent as against 13.5 per cent in April-June 2005-06.