Update: Infrastructure growth slows to 1.4% in Jan

The index of six core infrastructure industries expanded 1.4 per cent in January, 2009, as against 3.6 per cent in the same month of the previous year, data released by Commerce and Industry Ministry said today. The core infrastructure sectors together constitute 26.7 per cent of the Index of Industrial Production (IIP).

The muted growth in the index was mainly due to lesser production of crude oil, which shrunk 8.1 per cent in the month, against 0.2 per cent contraction in January 2008.

Petroleum products production in January also contracted 2.6 per cent, as compared to 5.4 per cent increase in the year ago month.

Coal production expanded 6.3 per cent in the month under consideration, as compared to 7.9 per cent in the corresponding month of the previous year.

Electricity generation expanded by 1.4 per cent, compared with 3.7 per cent in January 2008. Cement production increased 8.3 per cent as against 5.6 per cent in the year ago month.

Finished (carbon) steel production grew 1.2 per cent, as compared to 2 per cent in the same month of 2008.

In the April to January period of 2008-09, the core infrastructure index expanded 3.2 per cent over 5.7 per cent in the same period of the previous year.