In a big disappointment for the policy makers that the industry will revive in the third quarter of the FY 13, the eight core sectors output declined by 2.5% in February 2013, against a growth of 7.7% in the same month of previous year. Negative performance in reporting month pulled down the cumulative expansion of these industries in the first 11-month of the fiscal to 2.6% from 5.2% in the same period of the previous year.
Among the eight core sectors, representing 38% weight in the Index of Industrial Production (IIP), five of them such as coal, crude oil, natural gas, fertilizer, electricity generation saw contraction in their output in February. While petroleum refinery products, steel and cement were the only sectors, which registered expansion for the month, however substantially slowed when compared with same month a year ago.
Coal production, which occupies 4.38% weightage in index, registered a negative growth of 8.0% for the reporting month compared to its high positive growth of 18% in February 2012. In cumulative terms, coal production recorded a growth of 3.7% during April-February 2012-13 compared to its growth of 0.5% during the same period of 2011-12.
Crude oil, with weightage of 5.22% in index registered a de-growth of 4% in the reporting month compared to its 0.3% growth in February 2012. Cumulatively, crude oil production declined by 0.7% for the first 11-month of the fiscal compared to its positive growth at 1.4% during the same period last fiscal.
Natural gas and electricity generation with weight 1.71% and 10.32% registered the negative growth of 20.1% and 4.1% in month under review against a de-growth of 7.6% and 8.6% growth in same month previous year. In cumulative terms, natural gas production registered a negative growth of 14.2% growth during April-February 2012-13 compared to a contraction of 8.8% during the same period of last fiscal. Growth of electricity generation was 4.0% against 8.7% growth during the same period of 2011-12.
Moreover, fertilizer production having 1.25% weight in index registered a negative growth of 4.0% for the reporting month against its positive growth at 4.1% in the same month previous year. On cumulative basis, it registered a negative growth of 4% for the first 11-month of the fiscal compared to its 0.3% growth during the same period of 2011-12.
On the positive side, petroleum refinery production, representing 5.94% weight in IIP index grew by 4.3% in February 2013 compared to its growth at 6.0% in February 2012. In cumulative terms, it registered a growth of 7.0% during April-February 2012-13 compared to its 3.3% growth during the same period of 2011-12.
Similarly, Steel and Cement production registered growth of 0.5% and 3.9% in month under review against 8.7% and 9.8% growth in same month previous year. In cumulative terms, steel production registered 2.1% growth for the first 11-month of the fiscal compared to 10.7% growth during the same period of last fiscal. Growth of cement production was 5.5% against 6.7% growth during the same period of 2011-12.
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