Improvement in mining and electricity Index of Industrial Production (IIP) for February 2016, could be hinting at rebound in industrial activity in the country. Sector experts suggest coupled with other indexes; this is silver lining for the industrial growth.<\/p>\n
Mining sector grew 5 per cent in February 2016. Cumulatively for April 2015-February 2016, it grew 2.4 per cent from 1.5 per cent for the same period in the previous year. Historic high coal production and availability led to considerable improvement in mining growth.<\/p>\n
Coal India production growth was 9 per cent after three years with close to 500 million tonne of coal production in last fiscal. The current coal availability at power stations is on a historic high of 26 days with not a single power plant in the country facing fuel shortage.<\/p>\n
\u201cLast February, private coal production was nil as the block allocations was cancelled. At that base, now that some mines have started production, it has contributed to the growth of mining sector,\u201d said a coal sector expert.<\/p>\n
As a major beneficiary of enhanced coal production, electricity generation grew by 9.6 per cent in February 2016, higher than the past four months. \u201cElectricity growth could be largely owed to improved coal availability but it is too early to indicate a recovery in the power market. The likelihood is high that electricity growth is because of increased industrial consumption and activity,\u201d said a power market analyst.<\/p>\n
However, the current power demand from the states is as same as last year during corresponding period. In the past three months the cumulative average power demand has remained in range of 1.37-1.4 lakh Mw. The power demand has witnessed no major spike since September 2015, when it has gone up to 1.5 lakh Mw.<\/p>\n
The electricity growth cumulatively for April 2015-February 2016 was at 5.1 per cent which is considerably lower than the 9.1 per cent growth for the same period in the previous year.<\/p>\n
“Growth in electricity consumption in the Jan-Mar Quarter must be seen with massive growth in Furnace Oil and Petroleum Coke consumption – signifying genuine improvement in industrial activity. Though it might be too early to conclude based on fluctuating IIP numbers, but these are definitely some green shoots that points to beginning of an industrial recovery.” Said Debasish Mishra a Partner with Deloitte Touche Tohmatsu India LLP.<\/p>\n
Coke, refined petroleum products & nuclear fuel grew by 9.8 per cent over past year. Sector experts also pointed out iron prices have jumped by 50 per cent in just few months. At the same time, air travel growth has increased by 20per cent. So, these are scattered indicators of industrial revival happening, said experts.<\/p>\n
Some important items showing high positive growth include Wood Furniture (78.7 per cent), Plastic Machinery including Moulding Machinery (70.7 per cent), Woollen Carpets (44.9 per cent), Boilers (35.1 per cent), Gems and Jewellery (33.1 per cent), Aluminium wires & extrusions (28.6 per cent), Aluminium Conductor (23.5 per cent), Telephone Instruments including Mobile Phone and Accessories (20.9 per cent) and Steel Structures (20.6 per cent), noted the IIP data released by the government last week.<\/p>\n","protected":false},"excerpt":{"rendered":"
Improvement in mining and electricity Index of Industrial Production (IIP) for February 2016, could be hinting at rebound in industrial activity in the country. Sector experts suggest coupled with other indexes; this is silver lining for the industrial growth. Mining sector grew 5 per cent in February 2016. Cumulatively for April 2015-February 2016, it grew 2.4 per cent from 1.5 per cent for the same period in the previous year. Historic high coal production and availability led to considerable improvement in mining growth. Coal India production growth was 9 per cent after three years with close to 500 million tonne […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[131],"tags":[],"class_list":["post-64139","post","type-post","status-publish","format-standard","hentry","category-coal"],"acf":[],"_links":{"self":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/64139","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/comments?post=64139"}],"version-history":[{"count":0,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/64139\/revisions"}],"wp:attachment":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/media?parent=64139"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/categories?post=64139"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/tags?post=64139"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}