Infrastructure Index Grows At A Mere 2% During Apr-Dec

Despite the infrastructure sector growing by 4.2 per cent in December 2001 as against 2.7 per cent in December 2000, the index of six infrastructure sectors managed a cumulative growth of 2 per cent in the first nine months of the current financial year compared to 6.8 per cent in the corresponding period last fiscal.

According to the latest data released by the commerce and industry ministry, the index, however, improved upon the growth in November 2001 which was pegged at 3.3 per cent, mainly on account of an impressive show by the cement sector which posted a 14.7 per cent growth during December 2001.

The sector clocked 6.4 per cent growth in the first nine months of financial year 2001-02 as compared to a little over 2 per cent in the same period a year ago.

Cement sector staged a comeback in December 2001 with 14.7 per cent growth instead of 11.5 per cent decline in the corresponding month in the previous year.

The sluggish growth during April-December 2001 was primarily due to decline in crude petroleum production, sluggish growth in petroleum refinery products, coal, electricity and finished steel.

Crude petroleum production declined by 1.9 per cent in the first nine months of the current fiscal, as compared to 0.7 per cent growth in the corresponding period in the previous financial year. Crude petroleum production dipped by 1.1 per cent in December 2001 as against 5.4 per cent in December 2000. The decrease has been attributed to socio-environment problems, frequent blockades, miscreant activities, bandhs and reservoir problems.

The growth in petroleum refinery products fell to 4.2 per cent during April-December 2001-02 from 25.9 per cent in corresponding period in 2000-01.

During December, the growth of petroleum refinery products fell to 8.8 per cent compared to 11.3 per cent in the previous year due to inconsistent supply from Mumbai High crude oil and delay in receipt of imported tankers, emergency shutdown in BPCL and product containment problem in the Kochi refinery.

The coal sector growth also slowed down to 3.5 per cent in the first nine months of the current fiscal as compared to 5.4 per cent in the corresponding period of previous year.

The coal sector in December 2001, however, rose to 2.4 per cent as against 0.7 per cent growth in the same period in the previous year, it said.

Electricity sector growth fell to 2.8 per cent during April-December 2001-02 as compared to 4.8 per cent in the corresponding period a year ago, while in December 2001, the growth slowed down to 3.7 per cent as against 4.2 per cent in the same month the previous year.

The finished steel grew by 0.3 per cent during the first nine months of the current fiscal as against a whopping over nine per cent growth in the corresponding period a year ago.

During December 2001, the steel sector grew by 3.7 per cent as against two per cent in the same month in the previous year.