Decline in production of crude oil coupled with a slow down in output of other products pulled back the growth of six key infrastructure industries to 5.3 per cent in June compared to 7.7 per cent a year ago.
The growth of the six infrastructure industries, which have a combined weight of 26.7 per cent in the index of industrial production (IIP), during the April-June quarter was also slow at 6.9 per cent as against 7.4 per cent in the first quarter of 2006-07, according to government data released on Friday.
Barring electricity, every other industry — petroleum refinery products, coal, cement and finished steel — recorded slower growth in June. The sixth industry — crude oil production — saw a decline in June by 1.8 per cent to stand at 27,74,000 tons compared to 28,26,000 tons a year ago.
Power stands out
Electricity, however, grew by 6.8 per cent in June compared to 4.9 per cent in the same month last year. The slowdown in core infrastructure sector could have a direct bearing on economic growth, as well as indirect adverse effect on other sectors which use inputs from these six industries.
During the first quarter of this fiscal, electricity generation was up 8.3 per cent but crude petroleum production declined by 0.7 per cent at 83,83,000 tons.
Though petroleum refinery output did not decline, its growth slowed down. However, for the first quarter, petroleum refinery production showed a rise of 13.2 per cent to stand at 3,60,41,000 tons against 11.9 per cent at 3,18,41,000 tons in April-June a year ago.
Coal too presented a dismal picture as production grew by just 1.3 per cent in June at 32.34 million tonnes. During April-June 2007, coal production was up 0.7 per cent to stand at 97.57 million tonnes against 8 per cent growth during the same period last year.
Cement production growth also slowed down to 5.6 per cent in June against 11.7 per cent last year.
Production of this crucial construction material grew by just 6.8 per cent in the first quarter of this fiscal compared to 10.2 per cent at 4,06,30,000 tons in the same period last fiscal and finished steel production was up 7.7 per cent in April-June 2007.
