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Project cost index escalates 6.5% in May
Dr. M.S. KAPADIA
Tuesday, July 03, 2012, 15:10 Hrs  [IST]

The composite ERIL Index of Cost of Project inputs was up by 6.5 per cent annually in May, marginally lower compared to 6.6 per cent in the previous month. The rise in the project outlay index worked out to 1.4 per cent during April-May, much higher compared to 0.8 per cent in these months a year ago. The annual price rise for manufactured products, which technically sets the pace for project investment, worked out to 5 per cent during the month.

Computed by Economic Research India Pvt. Ltd, the ERIL Index measures the overall project cost escalation in terms of WPI of material inputs relevant in project construction.

The consolidated wholesale price index for non-metallic mineral products declined by 0.1 per cent during May due to lower prices of pressed glassware and concrete poles and posts (3 per cent each) and grey cement (1 per cent). However, the prices of slag cement increased by 5 per cent, white cement by 4 per cent, asbestos corrugated sheet by 2 per cent, and bricks and tiles and railway sleeper by 1 per cent each.

The aggregate WPI for basic metals, alloys and metal products rose 0.3 per cent over the month due to higher prices of metal containers and steel rods (3 per cent each), ferrochrome, iron castings, iron and steel wires, pipes, tubes, rods and strips (2 per cent each), and brass, steel castings, wire rods, GP/GC sheets, HRC sheets and aluminium (1 per cent each). However, the prices of melting scrap, lead and silver declined by 3 per cent each, copper wire and pencil ingots (2 per cent each), and steel pipes and tubes and sponge iron (1 per cent each).

Untitled Document
ERIL INDEX OF COST OF PROJECT INPUTS: MAY 2012
Wholesale Price Index: 2004-05=100

Index
YoY Increase (%)
Increase since March (%)


2012/11
2011/10
2012
2011
Non-metallic mineral products 160.2 7.3 3.6 2.8 1.3
    Structural clay products 161.1 7.5 4.2 0.8 2.5
    Cement & lime 166.2 7.0 2.0 3.2 1.0
Basic metals, alloys, metal products 165.8 10.3 8.4 2.1 1.3
    Ferrous metals 157.3 10.2 7.2 2.3 1.3
    Non-ferrous metals 158.9 1.7 1.6 0.7 0.7
Machinery & machine tools 126.6 2.2 3.1 0.5 0.5
    Industrial machinery 145.1 2.3 3.0 1.1 0.6
    Construction machinery 132.9 1.5 -0.8 0.8 0.0
    Air conditioners & refrigerators 110.4 1.2 -2.0 0.3 0.0
    Non-electrical machinery 122.3 1.6 2.4 0.2 0.2
    Electrical machinery & batteries 130.5 2.3 3.7 -0.1 0.9
    Electrical accessories, wires & cables 140.4 3.4 3.0 0.5 -0.7
Transport equipment & parts 127.1 4.4 1.4 0.7 -0.5
    Automotives 126.3 4.7 0.5 0.7 -0.8
    Auto parts 127.8 2.5 4.4 1.1 0.7
Composite ERIL Index for project inputs 145.2 6.5 5.1 1.4 0.8
Overall WPI 163.9 7.5 9.6 2.6 1.9

The combined WPI for machinery and machine tools group increased by 0.2 per cent due to higher prices of rice mill machinery (12 per cent), food, beverages and tobacco processing machinery (11 per cent), threshers (5 per cent), ball and roller bearings (4 per cent), textile machinery (3 per cent), fluorescent tubes, conductors and pump and assembly (2 per cent each), and engines, electric switches, loaders, electric switchgears, lifts, machine tools and lamps (1 per cent each).

However, the prices of coupling (7 per cent), control equipment (5 per cent), electronic PCB, micro circuit and microwave oven (3 per cent each), electric motors (2 per cent), and batteries, grinding and wet coffee machinery and electric motor starters (1 per cent each) declined during the month.

The total WPI for transport, equipment and parts escalated 0.2 per cent due to higher prices of shafts (all kinds) (4 per cent), rail brake gear (3 per cent) and motorcycles, scooters, mopeds and auto parts (1 per cent each).
 
                 
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