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Core sector grew by 1.3% in Dec 2019

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The core sector growth for December 2019 improved and grew by 1.3 per cent as against the 0.6 per cent contraction seen a month ago. However, it was lower than 2.1 per cent growth witnessed in December 2018.

During the first nine months of the fiscal year 2019-20, the fiscal deficit of the central government has surpassed its budgeted estimate. During April-December 2020, the actual fiscal deficit was at 132.4 per cent of the budget target. The fiscal deficit during this period was Rs 9.4 lakh crore, higher than higher than the budgeted Rs 7.04 lakh crore for FY20. Lower tax collections and lower disinvestment proceeds coupled with significant growth seen in both revenue and capital expenditure has led to higher fiscal deficit.

  • The revenue receipts collection was lower at only 58.4 per cent of the budget estimate lower than 62.8 per cent seen in the corresponding period last year.
  • Tax collections were low at 54.9 per cent of the budgeted estimate for FY20. The decline has been on account of lower corporate tax collection, integrated GST, customs and service tax.
  • Non-tax revenue was higher at 77.3 per cent of the budget estimate compared with 60.3 per cent in the corresponding period last year. These are aided by higher receipts by way of dividends and profits (99 per cent of the budgeted).
  • Capital receipts are only 25.9 per cent of the budget estimate much lower than the 50.5 per cent in the comparable period last year.
  • Only 17 per cent of the disinvestment budgeted target has been achieved during the first nine months of FY20, lower than the 43 per cent last year. Disinvestment proceeds amounted to Rs 18,100 crore out of Rs 1.05 lakh crore budget target.
  • Revenue expenditure is on par with last year at 75.7 per cent of the budget target.
  • Capital expenditure is higher at 75.6 per cent of budget compared with 70.6 per cent in the comparable period last year indicative of focus of the government on asset creation.
  • We are expecting around 0.5 per cent slippage in the fiscal deficit, which is expected to move to 3.8 per cent of GDP for FY20.

    Core Sector update -December 2019
    The core sector growth for December 2019 improved and grew by 1.3 per cent as against the 0.6 per cent contraction seen a month ago. However, it was lower than 2.1 per cent growth witnessed in December 2018. The growth has been aided by improvement in the production in 3 industries namely refinery products, coal and fertilizers. In terms of cumulative growth in the eight core industries during April-December 2019, the growth was 0.2 per cent compared with the 4.8 per cent growth registered during April-December 2018.

    Industry-wise growth:

  • Coal production increased by 6.1 per cent in December 2019 over December 2018 with after sustained contraction seen in the previous five months.
  • Crude Oil production declined by 7.4 per cent in the month compared with the contraction by 4.3 per cent in the comparable month a year ago.
  • The production of the natural gas too has contracted by 9.2 per cent as against 4.2 per cent growth seen in December 2018 registering sustained contraction for the nine months.
  • Refinery products, which have highest weight in core sector, grew by 3 per cent as against a contraction by -4.8 per cent in December 2018.
  • Fertilizers have seen a double digit growth by 10.2 per cent in December 2019 as against -2.3 per cent de-growth seen in December 2018.
  • Steel production increased by 1.9 per cent in December 2019, after registering sustained contraction in the past 3 months. It is also lower than the 10.1 per cent growth seen in December 2018.
  • The production of cement grew by 5.5 per cent higher than previous month (4.3 per cent in November 2019) but it was much lower than the 11.6 per cent growth seen in December 2018.
  • Electricity production contracted for the successive fifth month in December 2019 by 1.9 per cent as against the 4.4 per cent growth seen in the corresponding month a year ago.
  • CARE Ratings- view
    Based on the core sector growth, IIP is expected to grow by 2 per cent for December 2019 which would also be aided by the base effect. We are expecting IIP to grow by 4 per cent for FY20.

    COURTESY: CARE RATINGS- Fiscal and Core Sector Update
    Disclaimer: This report is prepared by CARE Ratings Ltd. CARE Ratings has taken utmost care to ensure accuracy and objectivity while developing this report based on information available in public domain. However, neither the accuracy nor completeness of information contained in this report is guaranteed. CARE Ratings is not responsible for any errors or omissions in analysis/inferences/views or for results obtained from the use of information contained in this report and especially states that CARE Ratings has no financial liability whatsoever to the user of this report.

    ABOUT THE AUTHORS:

  • Madan Sabnavis is Chief Economist. He can be contacted on: madan.sabnavis@careratings.com or 91-22-68374433
  • Dr Rucha Ranadive is Economist. She can be contacted on: rucha.ranadive@careratings.com or 91-22-68374406
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    Economy & Market

    Leonard Unveils Dual-Head Robotic Arm for Hazardous Industrial Demolition

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     Leonard unveils Descender Duo, a dual-head robotic demolition arm designed to improve industrial safety and reduce shutdown time by up to 50 per cent.

    Industrial robotics and refractory services specialist Leonard has launched Descender Duo, a dual-head robotic demolition arm designed to improve safety, accelerate maintenance and reduce shutdown times in hazardous industrial environments. The system made its debut at Lisahally Power Station in Northern Ireland, removing 25 tonnes of slag material within hours.

    Developed for the cement, metals, waste-to-energy and petrochemical industries, Descender Duo enables remote-controlled refractory demolition, anchor cutting and welding, and refractory spraying inside boilers, calciners and silos. Its vertical-access design eliminates the need for personnel to enter confined, high-risk spaces during these operations.

    Weighing less than two tonnes, the pre-assembled system requires an access opening of just 1.2 m². Supported by an external overhead hoist, it uses electrically operated hydraulic stabilising legs to secure itself inside vessels. The robotic arm offers 360-degree rotation and is suited to vessels approximately 9 m in diameter, with its operating reach extendable through strategically positioned access points.

    Equipped with two independently controlled robotic heads, Descender Duo can perform identical or different tasks simultaneously, including refractory demolition, anchor cutting and spraying. Its remote-control system incorporates live camera feeds, allowing operators to monitor operations without entering hazardous environments.

    According to Leonard, the technology can deliver time savings of up to 50 per cent compared with manual methods. Its ability to operate at temperatures exceeding 100°C allows maintenance to begin as early as 24 hours after burner shutdown. An all-electric power supply further supports cleaner and more cost-efficient operations.

    First Deployment Demonstrates Shutdown Efficiency

    The system was first deployed at Burmeister & Wain Scandinavian Contractor’s (BWSC) Lisahally Power Station in Londonderry, Northern Ireland. The facility generates electricity from grade C waste wood, supplying approximately 40,000 homes and businesses.

    Leonard and BWSC collaborated to develop a customised solution for the plant’s 26-metre furnace, where extensive external pipework created significant access challenges.

    Mark Leonard, Managing Director, Leonard, said, “It required new thinking and rather than step away from the problem we were committed to solving it for the customer, with the customer. We’re relentless in our approach to tackling complex challenges, head-on. We took our years of cement plant experience, coupled with our working knowledge of the BWSC plant, and designed, engineered and tested a completely new vertical solution within just seven weeks from that initial conversation with the customer. That solution was the Descender Duo as we know it today.”

    Traditionally, the furnace required a cooling period of up to 36 hours before preparatory work could begin, followed by manual slag removal using rope-access personnel. With Descender Duo, work commenced just 24 hours after shutdown, reducing downtime by up to one day.

    The deployment removed 25 tonnes of slag within hours, eliminated the need for at least six workers to enter the hazardous furnace interior and saved 26 hours in the shutdown programme.

    “The effectiveness exceeded expectation,” said Martin Doran, Plant Manager at Lisahally Power Station.

    “When the Descender Duo concept was first discussed, we had to spend some time with the team from Leonard looking at how it was going to be moved into the furnace. Every site is different and that presented its own challenges, but nothing that the team couldn’t overcome. Once it was installed we were hugely impressed by its efficiency.”

    Expanding Industrial Robotics Applications

    Descender Duo joins Leonard’s existing portfolio of robotic maintenance solutions, including the Axis horizontal-access arm, Nano confined-space access arm, Charger cement mill media recharging system and Calibre cement mill media grading system.

    Headquartered in Northern Ireland, Leonard provides robotic refractory demolition, installation, inspection and industrial maintenance services across the cement, metals, energy, biomass, glass and civil engineering sectors.

    Formerly known as G Leonard, the company has more than 35 years of industry experience and operates across Europe, North America, the Middle East, Africa and Asia-Pacific.

    The latest innovation reinforces Leonard’s focus on replacing hazardous manual processes with robotic systems that improve workforce safety, enhance operational efficiency and minimise industrial downtime.

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    Concrete

    Martin Engineering Appoints Ashwini Khunte as India General Manager

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    Martin Engineering names Ashwini Khunte India General Manager to strengthen operations and drive growth across key bulk material handling sectors.

    Pune

    Martin Engineering, a global provider of bulk material handling solutions, has appointed Ashwini Khunte as General Manager of its India business, strengthening its leadership as the company expands its presence across the country’s cement, mining, steel, power and infrastructure sectors.

    Khunte brings more than a decade of experience with Martin Engineering, having joined its Indian operations in 2013 as a Design Engineer, shortly after the company established its presence in the country in 2012.

    A mechanical engineer by qualification, she spent her initial five years developing bulk material handling solutions in collaboration with the company’s operations team. During this period, she gained extensive experience addressing operational challenges in the steel, cement and coal industries. She subsequently moved into project engineering, managing major engineering, procurement and construction (EPC) and original equipment manufacturer (OEM) projects from initial enquiry to commissioning. Her responsibilities later expanded to overseeing Martin Engineering’s conveyor product portfolio in India, involving customer engagement, technical presentations and site visits across heavy industries.

    In 2024, Khunte was promoted to Head of Sales & Marketing for the company’s Europe, Middle East, Africa and India (EMEAI) region. The position broadened her international market exposure and strengthened her strategic and commercial leadership capabilities.

    Commenting on her appointment, Ashwini Khunte, General Manager, Martin Engineering India, said: “India represents a tremendous opportunity for Martin Engineering. The country’s continued investment in cement, mining, steel, power and infrastructure is creating increasing demand for safer, cleaner and more productive bulk material handling, and that’s exactly what we do. My priority will be to build on the strong foundations already established in India, while continuing to develop our people, strengthen customer relationships and bring practical solutions to the challenges faced by our industry.”

    Robert Whetstone, Area Vice President – EMEAI, Martin Engineering, highlighted Khunte’s technical expertise, market understanding and leadership experience.

    “Ashwini brings an exceptional combination of technical understanding, customer knowledge and commercial leadership. She has grown as Martin Engineering has grown, and has consistently demonstrated outstanding capability to transform her expertise into practical solutions. Her knowledge of the Indian market, together with her international experience, makes her ideally suited to lead our India business through its next stage of growth for years to come.”

    Since establishing its Indian business in 2012, Martin Engineering has expanded its local workforce, manufacturing capabilities and dealership network. The company supplies conveyor products, transfer point solutions, material flow aids, training and technical support to bulk material handling industries. Khunte’s appointment positions the company to further strengthen customer relationships and expand its solutions portfolio in India’s growing industrial and infrastructure markets.

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    Concrete

    Fornnax Wins AIRIA’s Special Export Award for Rubber Machinery in 2025-26

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    Fornnax Technology Pvt. Ltd. has been honoured with the Special Export Award – Rubber Machinery for 2025–26 by the All-India Rubber Industries Association (AIRIA), in recognition of its highest exports of tyre recycling plants to the European region.

    With more than a decade of experience in India’s tyre recycling industry, Fornnax has contributed to the development of advanced recycling technologies and infrastructure. The company currently holds a 90% market share in India’s domestic tyre recycling sector, while exports account for 30% of its business, spanning markets such as Europe, Australia and the GCC.

    The award marks another milestone for Fornnax, whose tyre recycling lines and advanced shredding technologies are supporting the growth of the circular economy in India and international markets.

    Commenting on the recognition, Mr. Jignesh Kundaria, Founder and Director of Fornnax, said:

    “This honour from AIRIA is a reflection of an incredible journey we have undertaken over the years. When we started Fornnax, there was no established recycling industry in India to follow. We chose to build for the future instead. Today, when you see India’s tyre recycling sector, it has already transformed into a dynamic, high-growth industry and we are extremely proud to have played our part in building it.”

    Unlike standalone equipment suppliers, Fornnax focuses on developing complete, high-capacity recycling infrastructure. Its integrated systems combine multiple stages of shredding and size reduction to enable efficient, continuous operations. This system-level engineering approach helps recycling operators improve throughput, equipment reliability and operational consistency.

    The recognition reinforces Fornnax’s commitment to developing engineering technologies that contribute to a more efficient and circular recycling ecosystem.

    Looking ahead, the company aims to expand its international presence while continuing to develop advanced shredding and recycling solutions to address the growing volumes and evolving requirements of the global recycling industry.

    For more information, visit: www.fornnax.com

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