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Core sectors output grew marginally by 0.1% in Jan 2021

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In January 2021, the eight core sectors output grew marginally by 0.1 per cent compared with 0.2 per cent in December 2020 and 2.2 per cent in the corresponding month last year. The growth in the last two months has been positive albeit anaemic and to some extent this reflects weakness in the physical production. There has been a broad based decline across all sectors except fertilisers, steel and electricity. The core sector output for December 2020 has been revised upwards from -1.25 per cent to 0.2 per cent.

The cumulative index of eight core sector during April-January 2021 registered a de-growth of 8.8 per cent on account of the nation-wide lockdown imposed in March which adversely impacted the industrial production compared with positive growth of 0.8 per cent in the corresponding period last year. All sectors except fertilisers contracted during this period. Double digit contraction was registered in natural gas, refinery, steel and cement.

Key highlights

Coal production contracted by 1.8 per cent registering de-growth for the first time in the last five months, primarily on account of a high base effect.

Crude oil production fell by 4.6 per cent in January 2021. Technical mishaps due to COVID-19 implications, reservoir issues and shut in of wells and delays in field development activities have led to the fall in production. Domestic production has been falling with the ageing of existing fields and muted response from the industry to take up new projects, mainly due to lack of adequate incentives. Moreover, higher import of crude oil and limitations on domestic exploration have weighed on the crude oil production.

Natural gas production contracted by 2 per cent in January 2021 mainly due to a fall in output of a major gas producer/explorer. Though it continued to remain in the negative territory there has been a sequential improvement in output compared with -7.2 per cent growth in the previous month.

Refinery production fell by 2.6 per cent in January 2021. Refinery production continued to remain in the negative territory for the 11th consecutive month. However, refinery capacity utilisation for the month was 105 per cent and it has been improving with each passing month indicating that the economy is slowly reflating and getting back to normalcy.

Fertilisers production registered a growth of 2.7 per cent in January 2021. Increase in fertilizer production can be ascribed to build-up of stocks by companies and increase in production of Complex fertilizers and DAP. The demand for these fertilizers is usually high during the rabi season.

Steel output grew by 2.6 per cent after contracting over November-December 2020. Higher automotive sales, robust demand from rural segment on the back of good monsoon and government spending on infrastructure has led to faster ramp up in production levels.

Cement output registered a de-growth of 5.9 per cent in January 2021. Slow pick up in institutional government projects is the key reason for this fall.

Electricity production grew by 5.1 per cent registering positive growth for the 5th consecutive month as a result of recovery in business sentiment and services.

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Going ahead the growth in the eight core sectors will be conditional upon the pace of economic recovery and high base effect. However, there continues to be uncertainty over re-imposition of Covid-19 restrictions amid rising level of infections. The IIP growth for the month can be positive (but less than 1 per cent) contingent upon support by consumer oriented industries.

Courtesy: CARE Ratings

ABOUT THE AUTHOR:

Akanksha Bhende, Associate Economist, CARE Ratings

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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NDMC Rolls Out Intensive Sanitation Drive Across Lutyens Delhi

Municipal body intensifies cleaning and monitoring across the capital

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The New Delhi Municipal Council has launched an intensive sanitation drive across Lutyens’ Delhi, aiming to raise cleanliness standards in the capital’s central precincts. The programme will combine enhanced manual sweeping with mechanised cleaning and systematic waste removal to cover parks, heritage precincts and prominent thoroughfares. Authorities described the initiative as a sustained effort to improve public hygiene and reduce environmental hazards while maintaining the area’s civic image.

Operational teams have been instructed to prioritise drain clearing and litter hotspots, with special attention to markets and transit nodes that attract heavy footfall. Coordination with city utilities and waste processing units will be stepped up to ensure timely collection and disposal, and supervisory rounds will monitor adherence to cleaning schedules. Officials also intend to use data-driven planning to deploy resources efficiently and to identify recurring problem areas.

The council plans to engage resident welfare associations and business stakeholders to foster community participation in maintaining cleanliness and to support behavioural change campaigns. Public communication will be amplified through notices and outreach to encourage responsible waste handling and to inform residents about collection timings and segregation norms. Enforcement measures for littering and unauthorised dumping will be reinforced as part of a broader strategy to deter violations and sustain cleanliness gains.

The move reflects a focus on urban sanitation that officials link to public health priorities and to the city administration’s commitment to maintaining civic amenities. Monitoring mechanisms will include regular reporting and inspections to review outcomes and to recalibrate operations where necessary, according to municipal sources. The council emphasised that continued community cooperation will be essential for the drive to deliver lasting improvements in the appearance and hygiene of the capital’s core areas.

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UltraTech Appoints Jayant Dua As MD-Designate For 2027

Executive named to succeed current managing director in 2027

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UltraTech Cement has appointed Jayant Dua as managing director (MD) designate who will take charge in 2027, the company announced. The appointment signals a planned leadership transition at one of the country’s largest cement manufacturers. The board has set a clear timeline for the handover and has framed the move as part of a structured succession plan.

Jayant Dua will be referred to as MD after assuming the role and will be responsible for overseeing operations, strategy and growth initiatives across the company’s network. The company said the designation follows established governance norms and aims to ensure continuity in executive leadership. The appointment is expected to allow a phased transfer of responsibilities ahead of the formal changeover.

The decision is intended to provide strategic stability as UltraTech Cement navigates domestic infrastructure demand and evolving market dynamics. Management will continue to focus on operational efficiency, capacity utilisation and cost management while aligning investments with long term objectives. The board will monitor the transition and provide further information on leadership responsibilities closer to the effective date.

Investors and market observers will have time to assess the implications of the announcement before the change is effected, and analysts will review the company’s outlook in the context of the succession. The company indicated that it will communicate any additional executive appointments or organisational changes as they are finalised. Shareholders were advised to refer to formal filings and company releases for definitive details on governance or remuneration.

The leadership change will be managed with attention to stakeholder interests and operational continuity, and the company reiterated its commitment to delivery on ongoing projects and customer obligations. Senior management will engage with employees and partners to ensure a smooth handover while maintaining focus on safety and compliance. Further updates will be provided through official investor communications in due course.

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Merlin Prime Spaces Acquires 13,185 Sq M Land Parcel In Pune

Rs 273 crore purchase broadens the developer’s Pune presence

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Merlin Prime Spaces (MPS) has acquired a 13,185 sq m land parcel in Pune for Rs 273 crore, marking a notable expansion of its footprint in the city.

The transaction value converts to Rs 2,730 mn or Rs 2.73 bn.

The parcel is located in a strategic area of Pune and the firm described the acquisition as aligned with its growth objectives.

The deal follows recent activity in the region and will be watched by investors and developers.

MPS said the acquisition will support its planned development pipeline and enable delivery of commercial and residential space to meet local demand.

The company expects the site to provide flexibility in product design and phased development to respond to market conditions.

The move reflects an emphasis on land ownership in key suburban markets.

The emphasis on land acquisition reflects a strategy to secure inventory ahead of demand cycles.

The purchase follows a period of sustained investor interest in Pune real estate, driven by expanding office ecosystems and residential demand from professionals.

MPS will integrate the new holding into its existing portfolio and plans to engage with local authorities and stakeholders to progress approvals and infrastructure readiness.

No financial partners were disclosed in the announcement.

The firm indicated that timelines will depend on approvals and prevailing market conditions.

Analysts note that strategic land acquisitions at scale can help developers manage costs and timelines while preserving optionality for future projects.

MPS will now hold an enlarged land bank in the region as it pursues growth, and the acquisition underlines continued corporate appetite for measured expansion in second tier cities.

The company intends to move forward with detailed planning in the coming months.

Stakeholders will assess how the site is positioned relative to existing infrastructure and connectivity.

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