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Project cost escalation eases
Dr. M. S. Kapadia
Monday, August 23, 2010, 17:34 Hrs  [IST]

The project cost escalation, as measured by the ERIL Index of Cost of Project Inputs, declined for the second month in July, after a sustained rise in the previous four months. The composite ERIL index worked out to 6.3% higher annually, with the increase in the first four months of the current fiscal placed at 4%.

Among the material inputs, the cost, as measured by wholesale price index, of non-metallic mineral products declined by 1.6% in July due to lower prices of cement (2%). However, the prices of ceramic tiles (4%) moved up.

The WPI of basic metals alloys and metal products declined by 0.2% due to lower prices of MS bars and rounds (7%), other iron steel (6%), steel sheets, plates and strips (2%), and pipes and tubes, foundry pig iron, zinc and basic pig iron (1% each). However, the prices of lead ingots and zinc ingots (2% each) moved up.

The WPI of machinery and machine tools rose by 0.5% due to higher prices of telephone instruments (16%), ring spinning and doubling frames (10%), textile machinery parts (5%), carding machine (4%), rubber insulated cables (3%), other textile machinery, other cables, tractor components and accessories, valves (all types) (2% each), and components and accessories of switchgears, PVC insulated cables, cranes, electric motors, complete engines and power driven pumps (1% each).

However, the prices of material handling equipment (6%), enameled copper wires (3%), electrical generators (2%), and other pumps (1%) declined.

The WPI of transport equipment and parts rose by 0.2% due to higher prices of truck chassis (diesel) and motorcycles (1% each).

Untitled Document
ERIL Index of Cost of Project Inputs: July 2010
Wholesale Price Index: 1993-94=100

Weight
Index
YoY
Increase (%)
Increase Since
March (%)

(%)

2010/09
2009/08
2010
2009
Non-metallic mineral products
2.516
215.8
-4.8
5.2
-3.1
3.8
Structural clay products
0.230
226.6
-0.3
3.6
0.7
1.4
Cement
1.731
211.5
-8.4
4.0
-4.9
2.4
Basic metals, alloys, metal products
8.342
285.1
11.9
-15.2
8.6
-0.7
Iron and steel
3.637
343.3
19.8
-21.0
14.2
-0.7
Non-ferrous metals
1.466
235.7
1.1
-8.3
-0.9
1.3
Machinery & machine tools
8.363
179.5
4.2
-2.2
0.9
-0.1
Electrical machinery
4.985
151.8
3.9
-4.6
0.3
-0.8
Non-electrical machinery
3.379
220.3
4.5
0.4
1.3
0.7
Transport equipment & parts
4.295
179.9
2.3
0.6
2.4
0.3
Composite ERIL Index for project inputs
23.516
220.9
6.2
-7.2
3.9
0.1
Overall WPI
100.000
262.5
10.0
12.3
3.6
4.6
 
                 
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