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Core sectors output remain negative

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In December 2020, the eight core sectors output growth remained in a negative trajectory for the 10th successive month with a contraction of 1.3 per cent during the month compared with negative growth of 1.3 per cent during November 2020 and 3 per centin December 2019. There has been an upward revision in the core sector output growth in November from -2.6 per cent to -1.4 per cent.

Barring coal and electricity, all other components of the core index continue to show de-growth. The cumulative index of eight core sector during April ??December 2020 contracted by 10.1 per cent indicative of the adverse impact on industrial production during the lockdown period compared with the 0.6 per cent growth in the corresponding period of last year. Barring fertiliser, there was a broad based contraction across sectors during this period. Double digit decline in output during this period is recorded in natural gas, refinery, steel and cement.

Key highlights:

  • Coal production growth grew by 2.2 per cent in December 2020, which is the slowest in the last 5 months. Coal production has recorded positive growth which indicates revival in demand for power post easing in lockdown and resumption of industrial activities.

  • Crude Oil production has fallen by 3.6 per cent in December 2020 due to COVID-19 restrictions/lockdown, nonavailability of drilling equipment and less than planned contribution from workover wells, drilling wells and old wells. The negative growth in crude oil production has sustained for nearly 3 years.

  • Natural gas production in the country fell by 7.1 per cent in December largely due to a fall in output of western offshore fields of private/JV companies. This is the 19th consecutive month of de-growth in natural gas production.

  • Refinery production has fallen by 2.7 per cent and fall in production has been narrowing with each passing month with the easing of restrictions and as the economy has been slowly reflating. There has also been an increase in refinery utilisation during December ??0 which is now 101 per cent and this can be ascribed to the increase in demand for petroleum products as there is an uptick in economic activities. The month of December 2020 saw growth in consumption of LPG 7.4 per cent, Petrol (MS) 9.3 per cent, Bitumen 20.9 per cent, Lubes & Greases 8.5 per cent, Light Diesel Oil (LDO) 87.4 per cent and products categorised under ??thers??8.4 per cent compared with December 19.

  • Fertilizer production has fallen by 2.9 per cent due to a high base effect and as the rabi sowing season almost comes to an end.

  • Output of steel sector has contracted for the second consecutive month by 2.7 per cent in December after registering three consecutive month of positive growth during Aug-October 2020. Low demand from automobile sector and high raw material costs and relatively muted construction activities in parts of the country must have weighed on the steel production.

  • Cement production fell to a 4-month low falling by 9.7 per cent in December 2020 compared with -7.3 per cent in November 2020 and 5.4 per cent in December 2019. The fall can be ascribed to muted construction activities.

  • Electricity production grew by 4.2 per cent in December 2020 compared with 3.5 per cent in November 2020 on account of further normalisation of economic activity.

CARE Ratings??View

Going ahead, the growth in the eight core sectors will be contingent upon the normalisation of economic activities and high base effect. The growth in industrial production is likely to be marginally positive but will be contingent on the growth in consumer durables segment.

Courtesy: CARE Ratings

ABOUT THE AUTHOR:

The article is authored by Sushant Hede, Associate Economist with CARE Ratings. He can be contacted at: sushant.hede@careratings.com | +91-22-6837 4348.

Disclaimer: This report is prepared by CARE Ratings Limited. 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

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Concrete

Cement Prices Likely To Rise As Petcoke Costs Increase

Nuvama warns input costs may lift prices by early April 2026

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A report by Nuvama Wealth Management said cement prices in India could rise by the end of March or early April 2026 as producers face higher input costs linked to crude oil. The report identified rising petroleum coke and packaging material costs as principal drivers of upward pressure on production expenses. Petroleum coke, a fuel used in cement manufacturing, rose by about 13 per tonne (t) in US dollar terms in February 2026, a change that could be passed on to buyers. Producers may adjust prices later in the quarter to protect margins.

Cement demand remained stable during February and March 2026, supported by ongoing construction and infrastructure activity, and earlier price increases on non-trade sales were largely reversed by the end of February. Retail prices remained broadly steady through March in most regions. The persistence of demand may allow firms to manage price adjustments rather than apply uniform increases. Market responses will vary by region and logistical cost pressures.

Nuvama said that stock performance of cement companies will likely be influenced by the path of cement prices and petroleum coke costs in the coming weeks. Rising input costs including crude linked fuels and packaging may squeeze profit margins and prompt firms to monitor pricing and demand closely. The balance between input inflation and end demand will determine whether companies absorb costs or transfer them to customers. Analysts will watch forthcoming quarterly results for evidence of margin pressure or successful cost pass through.

Government capital expenditure showed moderation, with overall capex declining 24 per cent year-on-year to around Rs 2 trillion (Rs 2 tn) in January 2026 and cumulative capex from April 2025 to January 2026 at about Rs 20 trillion (Rs 20 tn), up eight per cent year-on-year. The report noted that real estate launches fell 44 per cent year-on-year in January 2026, and overall healthy demand could still be offset by rising crude linked input costs that may push cement prices higher by late March or early April 2026.

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Concrete

IIT Guwahati Develops Radiation-Resistant Cement Mortar

Modified mortar offers structural strength and radiation shielding

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Researchers at the Indian Institute of Technology Guwahati (IIT Guwahati) have developed a cement mortar that is stronger, more durable and more effective at blocking harmful radiation for nuclear facilities. The modified mortar is designed to act as both a structural component and a radiation shielding barrier by increasing density and durability to limit radiation penetration. Concrete made with the enhanced mortar is expected to reduce the risk of radiation leakage and to support protective structures over extended periods.

To achieve this, the team incorporated four types of microparticles into the cement mortar: boron oxide, lead oxide, bismuth oxide and tungsten oxide. These microparticles were added in small quantities to assess their impact on compressive strength after 28 days and on the material’s ability to shield mixed radiation fields comprising gamma rays and neutrons. The study reported distinct effects for each microparticle, indicating trade-offs between mechanical strength, workability and radiation attenuation.

Professor Hrishikesh Sharma of the Department of Civil Engineering at IIT Guwahati said the safety of nuclear infrastructure depends on the performance of containment materials under extreme mechanical and radiation environments and that the study showed microparticle modifications can improve structural integrity and shielding. The research offers a framework for developing cement-based materials for nuclear power plants, small modular reactors and medical radiation facilities by enhancing resistance to heat, structural loads and radiation. The study was published in Materials and Structures and was co-authored by Professor Sharma, research scholar Sanchit Saxena and Dr Suman Kumar of CSIR-Central Building Research Institute, Roorkee.

Future work will scale up the developed mortar to a full concrete mix design, conduct structural-level testing of reinforced concrete elements and optimise microparticle dosage to balance mechanical strength, workability, durability and shielding performance. The team is seeking collaborations with nuclear energy agencies, material manufacturers and infrastructure firms for real-world testing and pilot applications. These steps aim to validate performance under simulated field conditions and support safer, more resilient nuclear infrastructure.

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Concrete

Cement Excellence Redefined!

Operational excellence in cement is no longer about producing more – it is about producing smarter, cleaner and more reliably, where cost per tonne meets carbon per tonne.

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Operational excellence in cement is no longer about producing more – it is about producing smarter, cleaner and more reliably, where cost per tonne meets carbon per tonne.

Operational excellence in cement has moved far beyond the old pursuit of ‘more tonne’. The new benchmark is smarter, cleaner, more reliable production, delivered with discipline across process, people and data. In an industry where energy can account for nearly 30 per cent of manufacturing cost, even marginal gains translate into meaningful value. As Dr SB Hegde, Professor, Jain College of Engineering & Technology, Hubli, and Visiting Professor, Pennsylvania State University, USA, puts it, “Operational excellence is no longer about producing more. It is about producing smarter, cleaner, more reliably, and more sustainably.”

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