Indian Core Industries grew by 6.8% in November

Index of Eight Core Industries (Base: 2004-05=100), November 2011

The summarized Index of Eight Core Industries with 2004-05 base is given at the Annexure. The Index of Eight core industries having a combined weight of 37.90 per cent in the Index of Industrial Production (IIP) stood at 141.1 in November 2011 with a growth rate of 6.8% compared to its growth at 3.7% in November 2010. During April-November 2011-12, the cumulative growth rate of the Core industries was 4.6% as against their growth at 5.6% during the corresponding period in 2010-11. Coal: Coal production (weight: 4.38%) registered a growth of 4.9% in November 2011 compared to its growth at 0.7% in November 2010. Coal production grew by (-) 4.0% during April-November 2011-12 compared to its growth at 0.4% during the same period of 2010-11.  Crude Oil: Crude Oil production (weight: 5.22%) registered a growth of (-)5.6% in November 2011 compared to its growth at 17.0% in November 2010. Crude Oil production registered a growth of 2.9% during April-November 2011-12 compared to its growth at 11.5% during the same period of 2010-11. Natural Gas: Natural Gas production (weight: 1.71%) registered a growth of (-) 10.1% in November 2011 compared to its growth at 5.5% in November 2010. Natural Gas production registered a growth of (-) 8.5% during April-November2011-12 compared to its growth at 19.9% during the same period of 2010-11. Petroleum Refinery Products (0.93% of Crude Throughput)*: Petroleum refinery production (weight: 5.94%) had a growth of 11.2% in November 2011 compared to its growth at (-) 3.5% in November 2010.  Petroleum refinery production registered a growth of 4.5% during April-November 2011-12 compared to its 0.8% growth during the same period of 2010-11. Fertilizers: Fertilizer production (weight: 1.25%) registered a growth of (-) 2.4% in November 2011 against its growth at 0.0% in November 2010.Fertilizer production grew by (-)0.1% during April-November 2011-12 compared to its growth at (-) 1.7% during the same period of 2010-11.  Steel (Alloy + Non-Alloy) : Steel production (weight: 6.68%) had a growth rate of 5.1% in November 2011 against its 7.6% growth in November 2010. Steel production grew at a same rate of 8.2% during April-November 2010-11 and 2011-12. Cement: Cement production (weight: 2.41%) registered a growth of 16.6% in November 2011 against its (-) 4.3% growth in November 2010. Cement Production grew by 4.3% during April-November 2011-12 compared to its growth at 5.3% during the same period of 2010-11. Electricity: Electricity generation (weight: 10.32%) had a 14.1% growth in November 2011 compared to its 3.5% growth in November 2010. Electricity generation grew by 9.3% during April-November 2011-12 as against its 4.6% growth during the same period of 2010-11.

Indian Infrastructural Growth stalls : shows Data

Index of Eight Core Industries (Base: 2004-05=100)  September 2011

1.         The summarized Index of Eight Core Industries with 2004-05 base is given at the Annexure. 2.         The Index of Eight core industries having a combined weight of 37.90 per cent in the Index of Industrial Production (IIP) stood at 131.50 in September 2011 with a growth rate of 2.3% compared to its growth at 3.3% in September 2010.  During April-September 2011-12, the cumulative growth rate of the Core industries was 4.9% as against their growth at 5.6% during the corresponding period in 2010-11. Coal 3.         Coal production (weight: 4.38%) registered a growth of (-) 17.8% in September 2011 compared to its growth at (-) 1.8% in September 2010. Coal production grew by (-) 4.8% during April-September 2011-12 compared to its growth at 0.2% during the same period of 2010-11.  Crude Oil 4.         Crude Oil production (weight: 5.22%) registered a growth of 0.1 % in September 2011 compared to its growth at 12.5% in September 2010. Crude Oil production registered a growth of 5.1% during April-September 2011-12 compared to its growth at 10.2% during the same period of 2010-11. Natural Gas 5.         Natural Gas production (weight: 1.71%) registered a growth of (-) 6.4% in September 2011 compared to its growth at 12.6% in September 2010. Natural Gas production registered a growth of (-) 8.5% during April-September 2011-12 compared to its growth at 25.2% during the same period of 2010-11. Petroleum Refinery Products 6.         Petroleum refinery production (weight: 5.94%) had a growth of 4.4% in September 2011 compared to its growth at (-) 10.2% in September 2010.  Petroleum refinery production registered a growth of 4.7% during April-September 2011-12 compared to its 2.6% growth during the same period of 2010-11. Fertilizers 7.         Fertilizer production (weight: 1.25%) registered a growth of (-) 2.1)% in September 2011 against its growth at 0.3% inSeptember 2010.Fertilizer production grew by 0.6% during April-September 2011-12 compared to its growth at  (-) 2.3% during the same period of 2010-11.  Steel (Alloy + Non-Alloy) 8.         Steel production (weight: 6.68%) had a growth rate of 6.6% in September 2011 against its 11.7% growth in September2010. Steel production grew by 9.5% during April-September 2011-12 compared to its growth at 7.4% during the same period of 2010-11. Cement 9.         Cement production (weight: 2.41%) registered a growth of 0.9% in September 2011 against its 5.2% growth inSeptember 2010. Cement Production grew by 2.5% during April-September 2011-12 compared to its growth at 4.7% during the same period of 2010-11. Electricity 10.       Electricity generation (weight: 10.32%) had a 8.9% growth in September 2011 compared to its 2.1% growth inSeptember 2010. Electricity generation grew by 9.3% during April-September 2011-12 as against its 4.1% growth during the same period of 2010-11.

Indian Power Sector on Verge of Collapse: CRISIL

 Leading rating agency Crisil today warned that unless government brings about urgent reforms in the power sector, especially on retail pricing and raw material supply fronts, lenders would be risking Rs 56,000 crore.

"There is an urgent need for strong policy actions to reform the power sector if we have to maintain the health of lenders, including the banks, along with PFC and REC. We estimate around Rs 56,000 crore or 12 percent of the lenders' total advances to the sector as potentially risky, if there is no meaningful progress on reforms in the next 18 months," Crisil Chief Executive Roopa Kudva told reporters here today.
Calling for a massive 50 percent spike in tariffs by state utilities, the agency said this is needed to break even the SEBs and eliminate subsidies. Such a steep increase will need political will, Crisil Ratings Director Pawan Agarwal said.
As of March 31, the total power sector advance stood at around Rs 4.8 lakh crore and it is likely to grow at 23 percent over the next two years.
"The risk to these lenders arises primarily from potential weakening in the asset quality due to escalating losses and debt levels in the distribution sector and shortage
of fuel," Kudva said. According to Crisil's estimate, the losses in the distribution mounted to Rs 35,000-40,000 crore in FY11, nearly double from the FY09 level.
Due to funding of these losses by debt, the cumulative debt of state power utilities, including distribution entities, has risen to an estimated Rs 3 lakh crore by March 31. "Further, the structural threat of fuel unavailability and pricing can potentially impair the viability of almost one-third of the 56,000 mw of thermal generation capacity under implementation today," Kudva said.
"Therefore, power sector reforms have become imperative to contain the potential asset-side risks for the lenders." "Improvement in systemic efficiency is required through reduction in distribution losses which can be achieved by involving the private sector in distribution, and broad-based political consensus is needed for implementing tariff increases..." Kudva added.
The agency opines that there is a need to hike tariffs by an average of 50 percent for state utilities to break-even, and eliminate need for subsidy.
"We believe that such hikes will have to continue over the medium-term despite political compulsions to bridge the large revenue gap. At the same time, the state support in the form of timely and increased subsidy disbursal will have to materialise to address the funding requirements," Agarwal said.

Power sector lenders at risk from delayed reforms: Crisil
(Reuters) Lenders to the power sector in India will be exposed to risk till the government ushers in sectoral reforms at a time when distribution losses and fuel shortages are on the rise, rating agency Crisil said.
Lenders Power Finance Corp (PFC), Rural Electrification Corp (REC) and several banks have together lent about 4.8 trillion rupees by March, and total advances are expected to grow 23 percent over the next two years, Crisil said on Wednesday.
Around 560 billion rupees of these lenders' exposure is potentially at risk if there is no meaningful progress on reforms in the next 18 months, it said in a statement, adding that the current ratings for PFC and REC remain strong because of government backing.
Asia's third largest economy experiences frequent power cuts and is upgrading its power infrastructure to cope with the higher demand for electricity.
But issues like poor financial health of the distribution firms, fuel shortages, sluggish pace of sectoral reforms and delay in getting clearances are threatening growth.
The sector should cut its aggregate distribution losses, which are above 25 percent now, while the political consensus should result in essential hike in electricity tariffs, Roopa Kudva, managing director and chief executive officer, said.
If the distribution firms have to break even in the future, then they need to hike tariffs by at least 50 percent from the existing level, she told reporters.
MOUNTING LOSSES
The net losses of the distribution firms, pegged at about 400 billion rupees in FY11, have been mounting at a rapid rate over the past five years, it said.
Many distribution firms are financing the gap in their revenues and the costs by debt funding, while nine states including Rajasthan, Bihar and Haryana account for 80 percent of the outstanding debt, the rating agency said.
Projects under implementation to add 19,000 megawatts are vulnerable to fuel availability and price risks, it added.
India's power sector could see tougher times ahead due to depleting inventory of key raw material coal, forcing several power stations to operate at extremely low stock levels, brokerage CLSA had said recently.
In 2011, shares of Power Finance Corp are down 53 percent, while those of Rural Electrification Corp fell 42 percent, and shares of smaller lender PTC India Financial lost 38 percent since its listing in March.

Indian I.I.P ( Indust. Prod. ) data Details

 

Core 08 Industries index show only 5.1% growth Y-o-Y

The Industrial Production nos have co relation to the I.I.P nos. The June Data show some industries having good demand like steel and Crude Oil. While, Coal and Natural Gas carrying worst nos. The impending slow down in Thermal and Non-thermal power plants, is lagging indicators of slowing Industrial Demand. The some of the factors may be seasonal and time being data. The Steel & Cement mop up possibly indicate Inventory mopping and export demand

Indian core Industry data Stagnates in June 2011

  
Ministry of Commerce & Industry29-July, 2011 18:02 IST
Index of Eight Core Industries (Base: 2004-05=100) June 2011
The Index of Eight core industries having a combined weight of 37.90 per cent in the Index of Industrial Production (IIP) with base 2004-05 stood at 138.98 in June 2011 and registered a growth of 5.2% compared to 4.4% registered in June 2010. During April-June 2011-12, eight core industries registered a growth of 5.0% as against 6.8% during the corresponding period of the previous year 2010-11.
Coal
Coal production (weight of 4.38% in the IIP) registered a growth of (-) 3.3% in June2011 compared to growth of 0.8% in June2010. Coal production grew by 0.2% during April-June 2011-12 compared to an increase of (-) 0.6 during the same period of 2010-11.
Crude Oil
Crude Oil production (weight of 5.22% in the IIP) registered a growth of 7.7 % in June2011 compared to a growth of 6.8% in June2010. The Crude Oil production registered a growth of 9.5% during April-June 2011-12 compared to 5.9% during the same period of 2010-11.
Natural Gas
Natural Gas production (weight of 1.71% in the IIP) registered a growth of (-) 11.7% inJune 2011 compared to growth of 25.4% inJune 2010. The Natural Gas production registered a growth of (-) 10.2% during April-June 2011-12 compared to 37.0% during the same period of 2010-11.
Petroleum Refinery Products
Petroleum refinery production (weight of 5.94% in the IIP) registered a growth of 4.7% in June 2011 compared to growth of 2.9% inJune 2010. The Petroleum refinery production registered a growth of 5.3% during April-June 2011-12 compared to 5.3% during the same period of 2010-11.
Fertilizers
Fertilizer production (weight of 1.25% in the IIP) registered a growth of (-) 2.4% inJune 2011 compared to (-) 6.7% in June2010.Fertilizer production grew by 1.1%during April-June 2011-12 compared to an increase of (-) 2.6% during the same period of 2010-11.
Steel
Steel production (weight of 6.68% in the IIP) registered a growth of 12.5% in June2011 compared to 4.3% in June 2010. Steel production grew by 7.8% during April-June2011-12 compared to an increase of 8.6% during the same period of 2010-11.
Cement
Cement production (weight of 2.41% in the IIP) registered a growth of (-) 0.8% in June2011 compared to 3.7% in June 2010. Cement Production grew by (-) 0.9% during April-June 2011-12 compared to an increase of 7.0% during the same period of 2010-11.
Electricity
Electricity generation (weight of 10.32% in the IIP) registered a growth of 8.2% in June2011 compared to a growth of 3.8% in June2010. Electricity generation grew by 8.3% during April-June 2011-12 compared to 5.7% during the same period of 2010-11.
N.B: Data are provisional. Revision has been made based on revised data obtained.