Core infra performance slows down in Feb: RBI

The performance of core infrastructure decelerated in February this year at 4.5 per cent as compared to 9.4 per cent in January, the Reserve Bank said.  

"The slowdown in the growth of core infrastructure during February 2010 was led by cement and steel, which may be attributed partly to adjustment in inventories," the RBI said in its Macroeconomic and Monetary Developments in 2009-10, released here today.  

There was an accelerated growth in power which was led by the robust manufacturing sector performance, it said, adding that growth in the output of cement and steel until February has been on account of improved construction activity.  

The output of crude and petroleum products remained generally subdued during the year so far--however, both have shown some pick-up, it said.  

"Petroleum products picked-up somewhat since August 2009, while crude oil production has recovered since December 2009," the RBI said.  

Natural gas production (not represented in the core infrastructure index) increased sharply during FY 10 on account of commencement of production from the D6 block in the KG basin and Rajasthan fields.  

"Natural gas production grew by about 40 per cent in April-January 2009-10 with high growth recorded particularly during the last few months," the Reserve Bank said.