Weighed down by negative growth in crude oil,natural gas and fertiliser,the eight core sector industries grew at a rate of 1.8 per cent in July,the lowest in the last nine months. The growth in key infrastructure industries was 8.2 per cent in the same month last year. The previous lowest expansion was 0.4 per cent in October last year. For the April-July period,the growth has slowed to 3.2 per cent from 6 per cent in the same period last year,according to official data released today. Natural gas and crude oil production contracted by (-) 13.5 per cent and (-) 0.7 per cent,respectively in July. Fertiliser output also shrunk by (-) 2.2 per cent in the month under review. Steel and coal production slowed to 4.5 per cent and 2.1 per cent,respectively. In the comparable month,it was 16.5 per cent and 2.5 per cent in that order. Cement,petroleum refinery and electricity output slowed to 3.8 per cent,3.6 per cent and 2.2 per cent against 13 per cent,3.7 per cent and 13 per cent,respectively. The eight core sector industries have a weight of 37.9 per cent in the overall Index of Industrial Production (IIP). The growth in core sector industries in May and June,too,had moderated to 4 per cent and 3.6 per cent from 5.9 per cent and 5.6 per cent. Need to change our approach towards infra development Given that a number of infrastructure projects getting delayed,there is a need to change the way we approach infrastructure development in the country,a report by FICCI and Ernst & Young said today. According to the report titled 'India Infrastructure Summit 2012: Accelerating implementation of infrastructure projects',jointly prepared by Ernst & Young and FICCI,nearly 78 projects were delayed in the road and transport sector followed by 47 in power and 31 in oil and gas. "There is a need to change the way we approach infrastructure development. The change required is needed across planning,bidding and execution of infra projects," Ernst & Young Partner Abhaya Agarwal said. "More thorough and forward-looking project preparation and a sound land-acquisition process can go a long way in facilitating successful implementation of projects. Similarly,enhanced dispute resolution and regular monitoring will increase the confidence of the private sector to invest in infrastructure projects in the country," Agarwal said. According to the report,"Infrastructure facilities like roads,railways,and ports under-achieved their investment targets in the 11th plan by 11 per cent,23 per cent and 54 per cent,respectively. Overall investment targets have been achieved only due to strong performance by telecom (34 per cent) and oil and gas (655 per cent) sectors,". The report cited few roadblocks affecting timely execution of projects including land acquisition,regulatory approvals,funding,lack of skilled manpower and shortage of construction equipment. Referring to shortcomings in railways,the report pointed out that the share of passenger movement by rail declined from 74 per cent in 1950s to present levels of 13 percent,and for the same period,the share of freight movement dropped from 86 per cent to 39 per cent. The Indian railways has added only 1,750 km of new lines,from 2006 to 2011,while China for the same period has added 4,000 km,excluding a high-speed network of around 10,000 km,it said. It further pointed out that there was a need for strengthening national highways,which only constitute around 1.7 per cent of the road network,but carry 40 per cent of the total road traffic. "Yet,only 24 per cent of the country's national highways are four-lane and meet the required standards," it said.
