NEW TELECOM POLICY 2012 APPROVED

The Union cabinet in a meeting presided over by the Prime Minister Manmohan Singh approved a new telecom policy 2012 which seeks to do away with roaming charges across the country. The new policy called National Telecom Policy-2012 will replace more than a decade old  legislation. The new Telecom Policy also simplifies the licencing policy. The new policy also seeks to provide a predictable and stable policy regime for a
period of nearly 10 years. The policy aims at providing secure, reliable, affordable and  high quality converged telecommunication services anytime, anywhere for an accelerated inclusive socioeconomic development. The policy emphasized on the multiplier effect and transformational impact of such services on the overall economy. Detailed guidelines, as may be considered appropriate are to be introduced from t from time to time for operational purposes. National Telecom Policy is expected to enable smooth implementation of the policies for providing an efficient telecommunication infrastructure taking into account the primary objective of maximising public good by empowering the people of India. Also the policy will enable taking of facilitatory measures to encourage existing service providers to rapidly migrate to the new regime in a uniformly liberalised environment with a level playing field. New Telecom Policy-2012 Highlights

• Increase rural teledensity from the current level of around 39 to 70 by the year 2017 and 100 by the year 2020

• Repositioning of Mobile phone as an instrument of empowerment

• Broadband -”’Broadband for All” at a minimum download speed of 2 Mbps

• Domestic Manufacturing - Making India a global hub.

The policy also provides for national number portability However in this respect too no timeline was provided. The New Telecom Policy also mentioned that cloud computing, next generation networks, IPV6 and Voice over Internet Protocol (VoIP) to be thrust. The union cabinet also approved introduction of unified licence and authorised the Department of Telecommunications to finalise the new unified licensing regime with the approval of minister of communications and IT.

NEW TRADE POLICY TO BOOST INDIA’S EXPORT

The Union Government of India on 5 June 2012 announced a new trade policyaimed at achieving 20 per cent increase in exports to 360 billion dollar in the fiscal year 2012-13. India’s exports grew by 21 per cent and touched 303.7 billion dollar in 2011-12, while the trade deficit during the same period expanded to 185 billion dollar. The government also announced to come out with new guidelines to restore Special Economic Zones (SEZ) and Export Oriented Unit (EOU) schemes to further boost the shipments. As the part of the new trade policy, the Union Commerce Ministry had added seven new markets to the focus market scheme (FMS) and an equal number of new markets to the special FMS. Countries like Algeria, Aruba, Austria, Cambodia, Myanmar, the Netherland Antilles and Ukraine have been added to FMS; while countries including Belize, Chile, El Salvador, Guatemala, Honduras, Morocco and Uruguay have been added to special FMS. The FMS and SFMS scheme will help India to explore new markets and promote the product diversification. The highlights of
the new trade policy are as follows:

• Government set the export target for 2012-13 at 20 per cent

• 2 per cent interest subsidy scheme extended till March 2013

• Government to announce new guidelines to promote SEZs

• Incentives for exports from north-eastern states

• Shipments from Delhi, Mumbai through post, courier or e-commerce to get export benefits

• Foreign Trade Policy document to be more user friendly

• 3 shows abroad to promote Brand India

• Single revolving bank guarantee for different export deals

• Seven new markets added to Focus Market Scheme

• Market linked focus product scheme extended till March’13 for apparel export to USA and EU

GAS ALLOCATION OF DMICDC DISCARDED

The Petroleum and Natural Gas Ministry on 25 June 2012 discarded Gas allocation of Delhi- Mumbai Industrial Corridor Development Corporation (DMICDC). The gas allocation was of 8 million metric standard cubic
metres per day (mmscmd) gas from two of DMICDC power projects, to provide gas at reasonable rate. The request was neglected because as per Petroleum Ministry there is additional demand of fertilizer about 22 mmscmd and any allocation of gas to DMICDC projects was not possible. Delhi- Mumbai Industrial Corridor Development Corporation (DMICDC) is a mega infra-structure project of 90 billion dollar. It has the financial & technical help of Japan. It is covering the length of 1483km between Delhi and Mumbai. DMICDC strains on expanding the manufacturing and services base and to develop DMIC as the Global Manufacturing and Trading Hub.

NOMURA SLASHED INDIA’S GDP PROJECTION

Nomura, the global financial services firm, on 26 June 2012 slashed the country’s growth  forecast for the fiscal year 2012-13 to 5.8 per cent, from 6.7 per cent earlier. Nomura also cut down India’s GDP forecast for 2013-14 to 6.6 per cent from the earlier 6.9 per cent. The government in its budgetary projection of GDP growth, estimated the growth rate to be around 7.6 per cent in the fiscal year 2012-13. India’s economic growth rate slipped to 6.5 per cent in 2011-12, while it had registered 8.4 per cent growth in the previous two financial years. The global financial services firm also hiked fiscal deficit forecast for India to 5.8 per cent of GDP in the current fiscal from 5.2 per cent. Government in its budget projections aimed fiscal deficit to bring down to 5.1 per cent in 2012-13 from 5.76 per cent in the previous fiscal.

SEBI NOTIFIED NORMS FOR LISTING OF STOCK EXCHANGE

Capital markets regulator Securities and Exchange Board of India (SEBI) on 21 June 2012 notified new rules for ownership and governance of stock exchanges to encourage the setting up of new bourses and enable exchanges to get listed. The amendments were announced following the legal tussle between the regulator and MCX Stock Exchange, which had earlier sought approval to start an equity platform. The new norms require the recognised stock exchange to have a minimum net worth of Rs 100 crore at all times and at least 51 per cent of stake has to be held by public. The ownership of a single investor was capped at 5% with an exemption for stock exchanges, depositories, insurance and banking companies and public financial institutions, which has been permitted to hold up to 15 per cent. The shareholders who hold stake in excess of the new limits would have to comply with new norms within a period to be decided by SEBI and such period could be of up to three years. SEBI also specified that direct and indirect exposure to any stock  exchange will be considered while
calculating the prescribed shareholding limit. The new rules permits stock exchanges to list on any recognised stock exchange other than itself and its associated stock exchanges, within three years of commencing operations. It was highlighted that for a stock exchange that is not listed, an FII may acquire shares through transactions outside of a recognised stock exchange provided it is not an initial allotment of shares. For listed  bourses, the FIIs can transact through the exchange where the shares are listed. The market regulator had earlier in April 2012 approved changes to the Manner of Increasing and Maintaining Public Shareholding (MIMPS) in recognised stock exchanges at a  board meeting. SEBI is currently in the process of formulating minimum listing standards for listing of companies on stock exchanges. A Conflicts Resolution Committee or CRC will
be formed by SEBI with a majority of external and independent members to deal with all issues concerning conflicts of interest with respect to listing of companies. The CRC will first consider matters of policy and guidelines involving conflict issues and then recommend standards relevant to the areas of potential conflict in exchanges. With respect to listing the market regulator mentioned that a recognised stock exchange may apply for listing of its securities on any bourse other than itself and its associated stock exchange, provided they comply  with the new regulations of ownership and governance and also has completed three years of continuous trading operations and has got SEBI’s approval. The shares of a recognised stock exchange and a recognised clearing corporation is required to be in demat form, while clearing corporation cannot hold any right, stake or interest in an exchange.

THE RUPEE PLUNGED TO A RECORD LOW OF 56.90

Indian Rupee plunged to an all time low of 56.90 rupees against the US dollar on 22 June 2012 on global risk aversion and demand  for dollar. India’s slipping domestic growth, declining industrial output figure, RBI’s stringent monetary policy stance, persistent high rate of inflation and credit rating downgrade by international rating agencies like Fitch and Standard and Poor’s have prompted the worsening of Indian rupee against the dollar. Given the current economic and political situation of the country, rupee may fall further at 57-58 levels in June 2012. Rupee, given its current trading status, is proving to be Asia’s worst performing currency. The currency has also been the poorest performer among the all Asian currencies this week, on a 5-day basis. So far the Indian currency had tumbled 6.7 per cent in the year 2012.

INDIAN ECONOMY TO GROW BY 6.9 PER CENT

The World Bank in its report named Global Economic Prospects released on 12 June 2012, projected Indian economy to grow by 6.9% in the financial year 2012- 13. The World Bank report predicted India’s growth increasing to 6.9 per cent, 7.2 per cent and 7.4 per cent in fiscal years 2012-13, 2013-14 and 2014-15, respectively. Blaming fragile monetary policy, long paused reforms, persistent inflation and widening fiscal deficit for the country’s poor growth in 2011, the multi-lateral agency advised India to take some corrective measures to improve the sinking growth. Indian economy grew by 6.5 per cent in 2011-12, the lowest in the past nine years. The economy had registered an impressive 8.4 per cent growth in the previous two years. The Indian government had projected the economy to grow at 7.6 per cent in the fiscal year 2012-13, but given the prevailing economic and political situations in the country, the projected growth rate could be hard to achieve. The World Bank report estimated the global economy to expand 2.5% in the fiscal year 2012-13. The multilateral agency also cautioned the developing nations of the bumpy ride ahead.

US HEALTH CARE LAW HELD CONSTITUTIONAL

The US Supreme Court on 28 June 2012, upheld the US President Barack Obama’s most ambitious social legislation, the Health Care Law (The Patient Protection and  Affordable Care Act). The court verdict came in the favor of legislation, made it mandatory for all American citizens to have health insurance or pay a penalty. The health care legislation mainly aims at covering more than 30 million Americans who have not been insured. The 9-judge US Apex Court bench headed by Chief Justice John Robert held the ruling as constitutional in a 5-4 ruling. Chief Justice John Robert’s vote proved to be crucial while deciding the fate of the bill. With the  Supreme Court ruling came in the favor of legislation, the country is set to join the league of developed nations which provide mandatory health care assurance to all its citizens. US President Barack Obama signed the Patient Protection and Affordable Care Act (ACA) into law in March 2010. The legislation faced severe protest as Republicans, the National Federation of Independent  Businesses and several individualscame in the opposition of it and pushed the demand to repeal the law. Nearly 25 states came forward opposing the bill as they argued that the health care legislation  would add to the national debt, and proved to job-killer.

MOODY’S ‘STABLE’ CREDIT RATING OUTLOOK FOR INDIA

In a big respite to the troubled Indian economy, Moody’s Investors Service, the leading credit ratings provider, on 25 June 2012 reinstated the stable credit rating outlook for India. The Moody’s decision mirrors its view that the prevailing economic slowdown in India is not going to last longer and the country will soon come out of the gloomy economic state. Moody’s in its latest report named Frequently asked questions about India’s sovereign rating pointed out that India’s Baa3 rating already comprises challenges including a weak fiscal performance of the government, high inflation and an uncertain investment policy environment, which have characterized the economy for decades. The other credit rating agencies Standard & Poor’s and Fitch had earlier revised India’s credit outlook to negative in their separate report on country’s sovereign credit rating. The
Standard & Poor’s move came on 24 April 2012, followed by Fitch which had downgraded India’s rating to negative on 18 June 2012. In its latest report the Standard & Poor’s had threatened to put India into the junk (speculative) category from investment category. What does Sovereign rating Baa means?  Sovereign rating Baa are judged to be medium-grade rating and subject to moderate credit risk and possess certain speculative
characteristics.

INDIA’S FDI SLIPPED 41% IN APRIL 2012

According to the latest data released by the Reserve Bank of India (RBI) on 19 June 2012, the foreign direct investment (FDI) inflows in India dipped nearly 8 per cent to 7.8 billion dollar during January-April 2012. In the month of April 2012, India registered a decline of 41 per cent to 1.85 billion dollar in its FDI inflow. The country had attracted FDI worth 3.12 billion dollar in April, 2011. The decline in FDI was largely attributed to policy paralysis on the side of government which apparently stalled several policy reforms in the country. Legislations like retrospective tax laws and persistent inflation only added to the anxiety of global investors, who once considered India as a country with immense economic possibilities. Services sector with a total of 449 million dollar inflow topped the list of sectors which received the maximum FDI inflow in April 2012.The sector was followed by pharmaceuticals sector at 359 million dollar FDI, construction sector at 120 million dollar FDI and power sector at 68 million dollar FDI. The country received the highest-ever monthly FDI inflow of 8.1 billion dollar in March 2012. Earlier, the highest figure was 5.65 billion dollar which came in June 2011. Entire FDI inflows for the fiscal 2011-12 clocked 36.50 billion dollar. In the fiscal year 2010-11 the country had registered 19.42 billion dollar FDI, down from 25.83 billion dollar in 2009-10. In a move that signifies investors’ eroding confidence in India, the international credit rating agencies Standard and Poor’s and Fitch lowered India’s credit outlook to negative from stable.

DIFFERENCE BETWEEN FDI & FII

FDI and FII both the terms are related to investment in a foreign country. FDI is an investment that a company makes in a foreign country while, FII is an investment made by an investor in the stock markets of a foreign nation. In FII, the companies only need to get registered in the stock exchange to make investments while, in FDI the investors make investment in a foreign nation.

BIHAR TOPPED IN GSDP

According to data released by Ministry of Statistics of India on 1 June 2012, Bihar emerged as the state with highest economic growth rate in the country. The state which until recently was synonymous with poverty, recorded an impressive 13.1 per cent growth in 2011-12. Bihar topped the list for second consecutive year. The state’s economy even surpassed the Punjab on the back of four years of double-digit growth. The state was
closely followed by Delhi and Puducherry. Chhattisgadh and Goa were the other two states in the list of top five states. Tamil Nadu and Gujarat, the two highly industrialized states registered the growth of 9.4 per cent and 9.1 per cent respectively in the fiscal year 2011-12. Punjab, leading food grain producing state of India, Andhra Pradesh and Karnataka, both the  heart of the IT sector of the country, and Uttar Pradesh, the country’s most populous state, registered growth of 6.5% in 2011-12, lower than India’s GDP growth. With the Bihar government taking numerous measures to attract investment in the state, the result is quite visible with the growth
number rising on constant basis. An improved law and order situation and developing infrastructure in the state are apparently boosting the investment sentiments of the industrial houses in the country which are now coming ahead with proposals to set up factory in the state. Agricultural productivity has also taken a quantum jump in the state apparently contributing to the overall growth of the state. A slew of development measures have also
been put into place by the government to ensure enhanced education and medical facilities in the state.

INDIA’S FISCAL DEFICIT FOR APRILMAY PERIOD STOOD AT 1.41 LAKH CRORE RUPEES

As per the latest data released by the Controller General of Accounts (CGA), India’s fiscal deficit during the April-May, the  first two months of the fiscal year 2012-13 stood at 1.41 lakh crore rupees, 27 per cent of the budget estimates. The increased fiscal deficit figure came despite revenue receipt witnessing a substantial hike and stood at 47897 crore rupees, which was 5.1 per cent of the budget estimates. Total expenditure of the government in the first two months of fiscal year 2012-13 was 1.90 lakh crore rupees, or 12.8 per cent of the budget estimates. For the fiscal year 2012- 13, the government has pegged the fiscal deficit target at 5.13 lakh crore rupees, or 5.1 per cent of GDP. In the corresponding period during the last fiscal year, the fiscal deficit was 32 per cent of the budget estimate amounting 1.3 lakh crore rupees.

E-VOTING MADE MANDATORY BY SEBI FOR TOP 500 LISTED COMPANIES OF BSE & NSE

The capital market regulator Securities and Exchange Board of India (SEBI) on 26 June 2012 made  it mandatory for top 500 listed companies to hold e-voting with an objective to widen shareholder participation in key decisions. SEBI’s decision on e-voting is to be implemented in a phased manner. The implementation will begin by subjecting the top 500 listed companies at the Bombay Stock  Exchange and the National Stock Exchange based on market capitalization to e-voting. The structural changes like scrutiny of audit reports as well as e-voting are expected to benefit the capital market in the medium term. SEBI also decided to create a Qualified Audit Report review Committee (QARC) represented by accounting regulator ICAI (Institute of Chartered Accountants of India) and stock exchanges. The committee would be responsible for processing qualified annual audit reports filed by the listed entities with stock exchanges. The committee will be expected to study reports where accounting irregularities have been pointed out by Financial Reporting Review Board of the Institute of Chartered Accountants of India (ICAI-FRRB). The regulator relaxed norms for Offer For Sale (OFS). OFS is a new route introduced by SEBI in early 2012 to help companies increase their public shareholding.A minimum gap of two weeks between two OFS issuances was permitted by SEBI. SEBI made it easier for promoters of listed companies to dilute their stake and comply with public holding rules by 2013.As specified by SEBI, private sector companies and also the stateowned corporations is required to  have a minimum public holding of 25% by August 2013. In the SEBI board meeting, the regulator also announced a simpler share auction mechanism that would help listed companies to attract investors. It provided institutional investors with the option of applying for shares either with 100% margin or with a lesser margin to be fixed by stock exchanges. However in case of the lesser margin being fixed by the stock exchange the bids cannot be changed. With regards to fulfilling public holding norms, the board  decided that issuers will be required to disclose the floor price a day before the share auction. The floor price may or may not be a part of the notice given by companies on the offer. Investors were barred from modifying or cancelling bids  during the last 60 minutes from  the close of the bidding session in the auction. Exchanges are required to display the indicative price during the last 60 minutes of the close of bidding session irrespective of the  book being built.

RBI KEPT KEY POLICY RATES UNCHANGED

The Reserve Bank of India in its mid-quarterly monetary policy review on 18 June 2012, decided to keep the cash reserve ratio and the policy repo rate unchanged at 4.75 per cent and 8.0 per cent respectively. The reverse repo rate remain unchanged at 7.0 per cent. The marginal standing facility rate and the Bank Rate is to stand at 9.0  per cent. Further reduction in the policy rate at the time when the inflation is still above the comfort level of the people is likely to aggravate the inflationary pressures. The RBI while  announcing its monetary policy opined that there are several other factors other than policy rates, which are affecting the growth and investment activities in the country. The slowing pace of the economy (India’s March quarter  economic growth stood at 5.3 per cent, lowest in past 9 years) and weakening investment sentiments had prompted industry leaders to urge RBI to take a call on policy rate cuts. International credit rating agency Standard & Poor’s had warned that India could be the first BRIC nation to lose its investment level credit rating due to its fragile outlook of economy and frozen policy reforms. The RBI did not however pay much heed to the industry’s concerns of sinking growth and concentrated on taming the unrelenting inflation. India witnessed inflation figure rose to 7.55 percent in May 2012, which is the highest among industrialised countries and the BRIC group of nations. The central bank had earlier reduced the key policy rates by 50 basis points in its quarterly
review of monetary policy on April 2012.

INDIA’S EXPORTS REGISTERED A GROWTH OF 3.2 %

According to data released by the Commerce Ministry in New Delhi on 1 June 2012 India’s exports registered a growth of 3.2  per cent on year-on-year basis to 24.4 billion dollar in April 2012.Exports figure in April 2011 stood at 23.6 billion dollar. The slumping export figures are largely attributed to the slowing global demand of goods. Imports during the same period witnessed a growth of 3.8 per cent to 37.9 billion dollar, creating a trade deficit of 13.4 billion dollar. In April 2012, the country’s oil imports grew about 7 per cent to 13.9 billion dollar compared to the same period in  2011. Non-oil imports expanded 2 per cent on year-on-year basis to 24 billion dollar during April the first month of fiscal year 2012-13.  On an annual basis Indian exports expanded 21 per cent to 303.7 billion dollar in the fiscal year 2011-12. The imports during the same period grew 32.2 per cent to 488.6 billion dollar. The trade deficit for the full fiscal year was 184.9 billion dollar. A higher trade deficit will have an adverse impact  over already ailing Indian economy. The broadening trade deficit could worsen the current account balance of the country and further weaken the rupee.

RBI HIKED FOREIGN INVESTMENT LIMIT IN GOVERNMENT BONDS BY 5 BILLION DOLLAR

In a move aimed at arresting the unrelenting fall of Indian rupee, India’s central bank the Reserve Bank of India on 25 June 2012 hiked  the limit of foreign investment in government bonds by 5 billion dollar to 20 billion dollar. The bank also raised limit of external commercial borrowing (ECB) to 10 bilion dollar. Currently, foreign institutional investors (FIIs) are allowed to invest upto 20 billion dollar in Indian corporate bonds. While the limit in government bonds is at 15 billion dollar, FIIs are barred to invest in infrastructure bonds upto 25 billion dollar. The central bank also cut down the time period for the maturity of government securities (g-secs) to
three years from earlier five years. What is ECB ? External Commercial Borrowings (ECB) refer to commercial loans [in the form of  bank loans, buyers’ credit, suppliers’ credit, securitised instruments (e.g. floating rate notes and fixed rate bonds)] availed from non-resident lenders with minimum average maturity of 3 years. What are Government bonds or Government securities? Government bonds are the bonds issued by the Government of a country in its own currency. The bond helps the government to raise money which is used to finance various activities like building roads, hospitals, infrastructure etc. Hence, the government bonds are a kind of loan against which the government of a country receives a certain amount of money, for a certain amount of time, on a certain interest rate.

FITCH RATING AGENCY REVISED OUTLOOK ON INDIA’S FINANCIAL INSTITUTIONS TO NEGATIVE

Ratings agency Fitch on 20 June 2012 revised the outlook on India’s financial institutions to negative from stable. The outlook  of six government banks, two private banks, two wholly owned government institutions and one infrastructure finance company was lowered by the rating agency. The financial entities which faced the axe are as follows: Bank of Baroda (BoB) and its overseas subsidiary Bank of Baroda (New Zealand), Canara Bank, IDBI Bank and Axis Bank, Export-Import Bank of India, Hudco, IDFC and Indian Railway Finance Corporation. The downward revision in outlook is likely to result in increased cost of fund from overseas. Major public sector lender, State Bank of India which recently announced its plans to raise $2 billion from overseas markets will be hit the most by the revision. In the report by Fitch, the rating agency listed high customer deposit base, established domestic franchises and adequate capitalisation as the strengths of banks. On the other hand it also mentioned that non-banking institutions are at greater risk because they lack the funding advantage. It also mentioned that in case sovereign long-term IDR is downgraded, banks with viability rating (VR) of BBB- would also be affected because of these linkages. VR is designed to represent its view as to the intrinsic creditworthiness of an issuer. The rating agency had earlier on 18 June 2012 also revised India’s sovereign outlook to negative. Following the downward revision of the sovereign outlook, outlook of seven PSUs including NTPC, SAIL, IOC, PFC, GAIL, REC and NHPC was lowered to negative. The Fitch action thus affected 19 Indian entities in all. The rating agency further opined that weakening economic and fiscal outlook, slowing business reforms as well as inflationary pressures is likely to further put pressure on the future asset quality of the entities.

INDIA’S EXPORTS DROPPED BY 4.16 PER CENT AT 25.68 BILLION  DOLLAR IN MAY 2012

As per the export-import data released by the Commerce Ministry on 14 June 2012, India’s export dropped by 4.16 per cent at 25.68 billion dollar in May 2012. The falling exports figure was largely attributed to slump in global demand of goods and contracted industrial growth in the country. Imports also registered a decline of 7.36 per cent at 41.9 billion dollar. The trade deficit figure also shrank to 16.3 billion dollar during the May 2012, from 18.5 billion dollar in May 2011. On the export side petroleum products, engineering goods, gems and jewellery, and readymade garments witnessed a slump, while on the import front, gold and silver was down by about 51 per cent, while plant and machinery dropped by 8 per cent. However, imports of crude oil were up 14 per cent. Gloomy economic outlook in the western countries, particularly in eurozone economies, which had been a conventional market for Indian goods, badly hurt the exports of the country.

GROWTH RATE OF EIGHT CORE INFRASTRUCTURE INDUSTRIES DIPPED TO 2.2% IN APRIL 2012

As per the official data released on 31 May 2012, the  growth rate of eight core infrastructure industries dipped to 2.2 per cent in April 2012 from 4.2  per cent in April 2011. The eight core sectors — crude oil, petroleum
refinery products, coal, electricity, cement and finished steel has a weight of 37.9 per cent in the Index of Industrial Production (IIP). The dip in the growth of the core sector industries was attributed to poor performance by sectors such as natural gas, crude oil and fertilizers. The overall  infrastructure sector growth for March 2012 was revised downwards to 2.2 per cent as compared to a healthier 6.5 per cent expansion witnessed in the same month last year. Also, the cumulative growth of infrastructure industries was found to have slipped to 4.4 per cent, which is significantly lower than the 6.6 per cent increase seen in 2010-11. As per the data released by the CSO, natural gas and crude oil output during April 2012 fell by  11.3 per cent and 1.3 per cent, respectively. Petroleum refinery products and fertiliser production also witnessed negative growth rates, contracting by 2.8 per cent and 9.3 per cent in April 2012. Slowdown in electricity generation was also witnessed in April. Electricity generation grew at a lower pace of 4.6 per cent during the month as compared to 6.4 per cent in April 2011. However, three sectors- coal, steel and cement were noted to have fared better as compared to 2011. While coal production went up by 3.8 per cent in April 2012 as compared to an increase of 2.7 per cent witnessed in April 2011, the output of steel and cement grew by a healthy 5.8 per cent and 8.6 per cent during April 2012 as compared to negative growth rates of (-) 2.9 per cent and (- ) 0.1 per cent witnessed by the
two sectors in the corresponding period of 2011.