Rising input cost hits industries' growth in Sept

On the back of rising input costs and high interest rates,
the sharp decline in key sectors of coal, natural gas and fertiliser pulled
down the index of eight core industries.

The index slowed down to 2.3 per cent in September from 3.3
per cent in the corresponding period last year. These sectors had registered a
growth of 3.5 per cent in August 2011.

Coal was the worst performer, registering decline of 17.8
per cent in September. This could be largely attributed to the strike at
Singareni Collieries that hit production and the heavy rains that inundated
coal fields in Eastern India.

The sector had grown at -1.8 per cent in September 2010.

Steel production, too, reported a similar trend, recording a
growth of 6.6 per cent in September 2011 (11.7 per cent).

The only sectors that bucked the slowing trend were
electricity and refinery products. Electricity generation grew 8.9 per cent in
September 2011, (2.1 per cent), despite recording a 9.4 per cent growth in
August 2011.