Coal sector reports zero output growth in FY11

Environmental hurdles posed to mining ventures have exacted their toll on domestic coal production during the fiscal 2010-11. The coal sector reported a zero growth during the year, compared to 7.9% growth in the previous fiscal, as per the data relating to six core sectors released by the government on Monday.

Former CMD of Coal India Partha Bhattcharya said the nil growth happened for the first time since 1998-99. He said environment restrictions on coal mining ? the limit of 70% toxicity? played havoc with production.

On a monthly basis, India?s coal production declined 1.2% during March. In comparison, the sector had reported 8% growth during the same month in the previous year.

?Confusion prevailing over demarcation of no-go, go areas has forced developers to go slow on investment, leading to stagnation in the domestic coal production,? Dilip Kumar Jena, senior consultant and knowledge manager, PWC, said.

However, the combined growth in the six sectors was 5.9% during 2010-11, compared to 5.5% in the previous year, as per the Index of core sector.

On a monthly basis, the core sectors reported growth of 7.4% in March, compared to 6.8% in the same period in the previous year.

Crude oil, petroleum refining, cement, finished carbon steel, electricity besides coal are covered in the Index of Core Sector Industries report published by the government on a monthly basis.

According to the report, overall electricity generation in the country grew 5.6% during the fiscal 2010-11 compared to 6.2% growth reported for the previous year.

India?s crude oil production grew at 12.1% in March, compared to 3.5% in the corresponding period in the previous year. Growth in electricity generation during March was 7.6%, compared to 7.9% in the same month of the previous year.

India?s crude oil production grew at 11.9% during the year, compared to 0.5% growth reported for the past year.

The petroleum refining sector reported growth of 8.5% during March, compared to 1.1% decline in the same period in the past year. On an yearly basis, the sector saw growth of 3%, compared to 0.5% in the previous year.

Cement production grew at 6.5% in March, compared to 7.8% in the same month of the past year.

On an yearly basis, cement production grew at 4.5%, compared to 10.5% during the past year.