NEW DELHI, May 2: Declining output of crude petroleum, nitrogenous fertiliser and hydel power generation is adversely affecting the overall performance of the basic infrastructure industries in particular and industrial sector in general.

The industrial production, as pointed out by the monthly economic report released by finance ministry on Friday, during April-December 1997, decelerated to 8.3 % as compared to 11.4 % recorded in the corresponding period of the previous fiscal. The deceleration was witnessed in all the major sectors including manufacturing, mining and quarrying and electricity.

As far as the performance of infrastructure industry is concerned, the biggest setback was suffered by the petroleum sector. Despite all efforts of the ministry of petroleum and natural gas to step up crude production by adopting innovative techniques and promoting private sector participation, the output of crude declined by 9.3 % during April-February 1996-97. The bigger reliance on POL imports has been significantly adding to the burden on oil pool deficit and has prompted Prime Minister I K Gujral to hint at the most unpopular decision of increasing prices of petroleum products in his first address to the nation.

The hydel generation maintained its track record of poor performance. The generation declined by 5.7 % indicating worsening of the peaking problems in summer. Deceleration in the thermal generation will further added to the woes of the people and the industry. The thermal generation went up by only 5.9 % as compared to 14.9 % in the corresponding period of the previous year. The total power generation recorded a growth of only 3.7 % as against 8.5 % during the April-February 1995-96.

The deceleration was also witnessed in some of the crucial sectors like cement and steel. According to the available figures, the output of cement went up by 9.2 % during the first 11 months of 1996-97 as compared to 10.9 % in the previous financial year. The deceleration was sharper in case of saleable steel. The growth in output was only 2.0 % as compared to 9.3 % in the corresponding period of the previous fiscal. The other important segments of the industrial production like manufacturing and mining and quarrying also witnessed deceleration in growth.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.