Ministry of Commerce & Industry06-May, 2015 12:29 IST
Decline in Growth Rate of Core Sectors

The Index of Eight Core Industries (ICI) measures performance of eight infrastructure industries, viz Coal, Crude Oil, Natural Gas, Refinery Products, Fertilizers, Steel, Cement and Electricity, compiled at the base year of 2004-05

The Index of Eight Core Industries (ICI) measures performance of eight infrastructure industries, viz Coal, Crude Oil, Natural Gas, Refinery Products, Fertilizers, Steel, Cement and Electricity, compiled at the base year of 2004-05. The cumulative growth rate of ICI during April-March, 2014-15 was 3.5 % as compared to 4.2 % during corresponding period of previous year. However, the production index of various core industries has displayed variation in both direction and magnitude. Crude Oil, Natural Gas, Refinery Products, Fertilizer and Steel have contributed to the lower growth in overall index during April-March, 2014-15 as compared to corresponding period of previous year. Industry wise details of the growth rates are given below:

 

Growth Rate of Core Industries (in %)

Industry

April-March 2013-14

April-March 2014-15

Coal

1.3

8.2

Crude Oil

-0.2

-0.9

Natural Gas

-13.0

-5.2

Refinery Products

1.5

0.4

Fertilizers

1.5

-0.1

Steel

11.5

0.5

Cement

3.1

5.6

Electricity

6.0

8.0

Overall Index

4.2

3.5

                       

 

 

In general, low production of Crude Oil and Natural Gas was inter-alia, due to ageing fields, water/sand ingress, environmental problems, etc. and that of Refinery Products was due to shut down of certain units on account of accidents. Further, the decline in production of Steel was mainly on account of procedural and infrastructural bottlenecks faced by the industry. Production of Fertilizer was affected due to non-availability of adequate natural gas, unforeseen shutdown and shortage of raw materials of phosphoric acid, etc.

           

The Government is taking steps to revive production in these industries which includes measures relating to policy, procedures, improving infrastructure and ensuring availability of required inputs.

 

This information was given by the Minister of State (Independent Charge) in the Ministry of Commerce & Industry Smt. Nirmala Sitharaman in a written reply in Rajya Sabha today.

 

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RC/nb

 


(Release ID :121226)