Infrastructure index up 5.4 per cent in April-June

By Our Economy Bureau | 24 Jul 2004

New Delhi: The six main infrastructure sectors to register a growth of 5.4 per cent during the first quarter of the current fiscal compared to 4.7 per cent in April-June last year, according to the data released by the commerce and industry ministry on Thursday.

Despite the overall growth during the first three months of the fiscal, the growth rate of the six sectors combined during the month of June 2004, declined to 3.2 per cent against 5.6 per cent registered in the same month a year ago, mainly on account of a sharp decline in performance by the cement sector.

During the month of June, barring a healthy 7.4 per cent growth in the coal sector, a 10.8 per cent growth in petroleum refinery products and a near stagnant growth of around 1 per cent in the crude petroleum sector, all the other sectors showed a decline in their growths.

Growth in the electricity sector dipped to 4.2 per cent from 5.5 per cent in June 2003, while the decline in cement was sharp at a negative 4.3 per cent from a healthy 10.2 per cent in June last year.

Finished steel also registered a growth of 1.6 per cent in June 2004 from 6.7 per cent in the corresponding period last year.

In the first quarter, the petroleum refinery products registered a double digit growth at 12.6 per cent, while the crude petroleum output grew by 6.1 per cent during April-June, 2004 from a negative growth of 2.1 per cent in the year ago period.

Finished steel and coal are the only two sectors which have registered lower growth during the first quarter of the current fiscal at 2.7 per cent and 2.8 per cent respectively.

The official figures released on Thursday revealed that after an impressive 9.0 per cent growth rate in April, the infrastructure sector growth rate dipped to 3.2 per cent in June compared to 5.6 per cent a year earlier, led by the slowdown in cement sector. It stood at 5.1 per cent during May 2004.