Infra sector grows by 3.2% in August

Five of the eight industries, including crude oil and natural gas, recorded either a fall or slower growth in production compared with the previous month.

By: ENS Economic Bureau | New Delhi | Published:October 1, 2016 1:44 am

The production of eight infrastructure industries rose 3.2 per cent in August, compared with 3 per cent in July, as steel output touched a 37-month high, showed the official data released on Friday. However, five of the eight industries, including crude oil and natural gas, recorded either a fall or slower growth in production compared with the previous month, indicating a sustained and broad-based recovery is still far away.

Coal output, too, dropped 9.2 per cent, compared with a 5.1 per cent expansion in the previous month, mirroring a fall in the production of Coal India due to heavy downpour of rains during the month. Electricity generation rose 0.1 per cent in August, the worst growth since November 2015.

“The deterioration in the performance of electricity generation was driven by the contraction in thermal production. ..better rainfall as compared with 2015 has muted demand for electricity for irrigation and other end-use. The financial situation of some discoms also poses some constraint to off take of power,” said Aditi Nayar, senior economist at ICRA.

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