Lok Sabha Question No. 4802 (UNSTARRED), answered on 2021-03-24
Subject: Core Infrastructure Sectors
Ministry: COMMERCE AND INDUSTRY
Asked by: Kani K. Navas, Balubhau (Alias Suresh Narayan) Dhanorkar

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY

## DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE

## LOK SABHA

## UNSTARRED QUESTION NO. 4802.

TO BE ANSWERED ON WEDNESDAY, THE 24 TH  MARCH, 2021.

## CORE INFRASTRUCTURE SECTORS

## 4802.  SHRI K. NAVASKANI: SHRI BALUBHAU ALIAS SURESH NARAYAN DHANORKAR:

Will the Minister of COMMERCE AND INDUSTRY be pleased to state: वाणिज्य  एवं उद्योग मंत्री

- (a) whether  the  Government  is  aware  that  output  of  eight  core  infrastructure sectors has dropped by 8.5 per cent in August 2020, contracting for the sixth consecutive month;
- (b) if so, the details thereof and the reasons therefor;
- (c) the  rate  of  contraction  in  the  said  eight  key  sectors  from  the  year  2014  to
- November, 2020; and
- (d) the measures being taken by the Government to reverse this trend?

## ANSWER

## वाणिज्य  एवं उद्योग मंत्रालय में राज्य मंत्री (श्री सोम प्रकाश) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI SOM PARKASH)

- (a) to (c): The monthly Index of Eight Core Industries (ICI) is a production volume index. ICI measures collective and individual performance of production  in  selected  eight  core  industries  viz.  Coal,  Crude  Oil, Natural Gas, Refinery Products, Fertilizers, Steel, Cement and Electricity. The details of the growth of Index of Eight Core Industries during last year and since 2014-15 are attached in Annex.

The production of eight Core industries has been adversely affected by the  Covid-19  pandemic  and  associated  disruptions  in  demand  and supply  of  goods  and  services.    Some  of  the  demand  side  factors responsible for drop in production are decline in private final consumption expenditure and gross fixed capital expenditure, uncertainty  in  business  sentiments,  etc.  The  imposition  of  nationwide lockdown to contain the outbreak of Covid-19 pandemic was a major supply  side  factor  responsible  for  drop  in  the  core  sector  growth. Industrial growth depends on a number of factors including structural, external, fiscal and industrial factors.  The sudden outbreak of COVID-

19 has severely impacted some of the major economies of the world, viz. USA, European Union, UK and Japan.  In India too, various sectors were  affected  due  to  the  nation-wide  lockdown.  However,  after  the lockdown  was  relaxed,  improvement  has  been  witnessed  in  several sectors of the economy.

- (d): To  improve  the  core  sector  growth  in  the  country  the  prominent measures taken recently are as follows :
-  The National Infrastructure Pipeline is expected to significantly boost infrastructure and spur growth impulses in the economy.
-  Make in India, Pradhan Mantri Gram Sadak Yojana, Pradhan Mantri Awaas Yojana - Gramin, PM Awaas Yojana (Urban), Swachh Bharat Mission,  Jal  Jeevan  Mission  to  provide  'Har  Ghar  Jal'  as  well  as other infrastructure and housing schemes will stimulate the production  and  sale  of cement,  steel,  and  other  construction materials resulting in multiplier effect on the economy.
-  As part of Atmanirbhar Bharat Abhiyan, a Production Linked Incentive (PLI) scheme has been announced to enhance production of ' Speciality Steel' , incorporating four different product categories.
-  In  the Coal  Sector ,  amendments  in  the  the  Coal  Mines  (Special Provisions)  Act,  2015  through  the  Mineral  Laws  (Amendment)  Act, 2020 enacted on 13.03.2020. A total of 11 coal blocks are allocated under  Mines  and  Minerals  (Regulation  and  Development)  (MMDR) Act. Successful auction done for 19 out of the of 38 coal mines for commercial mining in June-2020, (a success rate of 50 per cent as compared to 30 per cent in the past).
-  For enhancing production  of oil and  gas, Government  has approved  major  reforms  in  exploration  and  licensing policy to enhance exploration activities, attract domestic and foreign investment  in  unexplored/unallocated  areas  of  sedimentary  basins and  accelerate  domestic  production  of  oil  and  gas  from  existing fields. The  policy reforms inter-alia aims to boost exploration activities with greater weightage to work programme, simplified fiscal and contractual terms, bidding of exploration blocks under Category II and III sedimentary basins etc.
-  The  Integrated Power Development  Scheme  (IPDS)  has  been approved to facilitate state utilities to ensure quality and reliable 24x7 power  supply  in  the  urban  areas  with  a  total  outlay  of  Rs  32,612 crores.  Further,  the  country  has  already  accomplished  two  major landmarks  in  rural  electrification  arena:  (i)  100  per  cent  village electrification under Deen Dayal Upadhyaya Gram Joyti Yojana, and (ii)  universal  household  electrification  under  'Pradhan  Mantri  Sahaj Bijli Har Ghar Yojana' (Saubhaagya).
-  To  boost  the Mining sector ,  Government has announced major initiatives under Atmanirbhar Bharat Abhiyan, which inter alia include:  (a)  introduction  of  a  seamless  composite  exploration-cummining cum-production regime; (b) 500 mining blocks to be offered through an open and transparent auction process; (c) joint auction of bauxite and coal mineral blocks; (d) removal of distinction between
- captive  and  non-captive  mines; (e) Mineral index for different mineral;  and  (f)  rationalization  of  stamp  duty.  These  structural reforms are aimed to boost growth, employment and to bring state of art  technology in the mining sector in general and in exploration in particular.
-  To  boost  domestic  manufacturing,  industrial  production  and  GDP growth, Production-Linked Incentive (PLI) Scheme in 13 key sectors, under the aegis of AatmaNirbhar Bharat, have been announced for enhancing India's manufacturing capabilities and exports. PLI Schemes for medical devices; mobile phones; electronic components; pharmaceutical drugs; telecom and network equipment; and electronic technology products have been notified.
-  Empowered Group of Secretaries (EGoS) and Project Development Cells  (PDCs)  have  been  set  up  in  the  Ministries/Departments  to facilitate and promote investment. A Single Window System involving clearances by Ministries /Departments and selected State Governments  is  on  the  anvil  to provide end-to-end  facilitation support.
-  In  the  Union  Budget  2021-22,  with  a  view  to  promote  domestic manufacturing,  announcements  have  been  made  on  setting  up seven  Mega  Investment  Textiles  Parks  (MITRA)  over  the  next  3 years  with  plug-and-play  facilities,  rationalization  of  customs  duty structure across sectors   and for a Scrappage Policy to phase out old and unfit commercial vehicles.
-  To  boost  domestic  manufacturing,  Department  for  Promotion  of Industry and Internal Trade has taken various measures  like amendments  of  Public  Procurement  Rules  to  enhance  minimum local  content;  setting  up  of  Fund  of  Funds  ,Seed  Fund,  Credit guarantee Schemes to build up  a strong eco-system for nurturing innovation and Startups; development of Industrial Land/ Land Bank and Industrial Information System; creating world class infrastructure through developing nodes across various Industrial Corridors; formulation  of  National  Master  Plan  on  multimodal  connectivity infrastructure; Industrial development schemes for North-East States, Union Territory  of  J  &K   and  Union  Territory  of  Ladakh,  for the States of Himachal Pradesh & Uttarakhand have been in force to boost industrialization in NE and hilly States.

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## ANNEXURE

## ANNEXURE  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (c)  OF  THE  LOK  SABHA UNSTARRED QUESTION NO. 4802 FOR ANSWER ON 24.03.2021.

Table 1: Growth rate of Eight Core Industries $ (month-wise on Y-o-Y basis in per cent)

| Sector       |   Coal |   Crude Oil |   Natural Gas |   Refinery Products |   Fertilizers |   Steel |   Cement Electricity |   Overall Growth |
|--------------|--------|-------------|---------------|---------------------|---------------|---------|----------------------|------------------|
| Jan-20 8.0   |   -5.3 |        -9   |           1.9 |                -0.1 |           1.6 |     5.1 |                  3.2 |              2.2 |
| Feb-20 11.3  |   -6.4 |        -9.6 |           7.4 |                 2.9 |           2.9 |     7.8 |                 11.5 |              6.4 |
| Mar-20 4.0   |   -5.5 |       -15.1 |          -0.5 |               -11.9 |         -21.9 |   -25.1 |                 -8.2 |             -8.6 |
| Apr-20 -15.5 |   -6.4 |       -19.9 |         -24.2 |                -4.5 |         -82.8 |   -85.2 |                -22.9 |            -37.9 |
| May-20 -14.0 |   -7.1 |       -16.8 |         -21.3 |                 7.5 |         -40.4 |   -21.4 |                -14.8 |            -21.4 |
| Jun-20 -15.5 |   -6   |       -12   |          -8.9 |                 4.2 |         -23.2 |    -6.8 |                -10   |            -12.4 |
| Jul-20 -5.7  |   -4.9 |       -10.2 |         -13.9 |                 6.9 |          -6.5 |   -13.5 |                 -2.4 |             -7.6 |
| Aug-20 3.6   |   -6.3 |        -9.5 |         -19.1 |                 7.3 |           0.5 |   -14.5 |                 -1.8 |             -6.9 |
| Sep-20 21.0  |   -6   |       -10.6 |          -9.5 |                -0.3 |           6.2 |    -3.4 |                  4.8 |              0.6 |
| Oct-20 11.7  |   -6.2 |        -8.6 |         -17   |                 6.3 |           5.9 |     3.2 |                 11.2 |             -0.5 |
| Nov-20* 3.3  |   -4.9 |        -9.3 |          -4.8 |                 1.6 |          -0.5 |    -7.3 |                  3.5 |             -1.4 |
| Dec-20* 2.2  |   -3.6 |        -7.2 |          -2.8 |                -2.9 |           2.6 |    -7.2 |                  5.1 |              0.2 |
| Jan-21* -1.8 |   -4.6 |        -2   |          -2.6 |                 2.7 |           2.6 |    -5.9 |                  5.1 |              0.1 |

$ Eight Core Industries includes Coal, Crude Oil, Natural Gas, Petroleum Refinery, Fertilizers, Steel, Cement & Electricity.

Table 2: Growth rate of Eight Core Industries $ (year-wise on Y-o-Y basis in per cent)

| Sector            |   2014-15 |   2015-16 |   2016-17 |   2017-18 |   2018-19 |   2019-20 |   Apr- Jan 2019-20 |   Apr- Jan 2020-21* |
|-------------------|-----------|-----------|-----------|-----------|-----------|-----------|--------------------|---------------------|
| Coal              |       8   |       4.8 |       3.2 |      2.6  |       7.4 |      -0.4 |               -2.5 |                -1.9 |
| Crude Oil         |      -0.9 |      -1.4 |      -2.5 |     -0.9  |      -4.1 |      -5.9 |               -6   |                -5.6 |
| Natural Gas       |      -5.3 |      -4.7 |      -1   |      2.9  |       0.8 |      -5.6 |               -4.3 |               -10.7 |
| Refinery Products |       0.2 |       4.9 |       4.9 |      4.6  |       3.1 |       0.2 |               -0.4 |               -12.4 |
| Fertilizers       |       1.3 |       7   |       0.2 |      0.03 |       0.3 |       2.7 |                4.2 |                 3   |
| Steel             |       5.1 |      -1.3 |      10.7 |      5.6  |       5.1 |       3.4 |                6.4 |               -14   |
| Cement            |       5.9 |       4.6 |      -1.2 |      6.3  |      13.3 |      -0.9 |                1.1 |               -16.6 |
| Electricity       |      14.8 |       5.7 |       5.8 |      5.3  |       5.2 |       0.9 |                0.9 |                -2.7 |
| Overall Growth    |       4.9 |       3   |       4.8 |      4.3  |       4.4 |       0.4 |                0.8 |                -8.8 |

*Provisional

$ Eight Core Industries includes Coal, Crude Oil, Natural Gas, Petroleum Refinery, Fertilizers, Steel, Cement & Electricity.

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