The ERIL Index of Cost of Project Inputs inched up to 138.6 during the week ended May 25, after remaining steady at 138.4 for the past three weeks. Taking a longer period, the project costs, as reflected in the Index, worked out to only 0.6 per cent higher compared to the level a year ago. Machinery and machine tools and transport equipment and parts contributed the YoY rise in the overall Index. Non-metallic mineral products showed a relatively large decline, while the Index for basic metals, alloys and metal products stagnated at last year's level.
The manufactured product prices, as reflected in WPI for manufactured products, remained in positive growth phase for the fourth week, with the YoY rise working out to 1 per cent.
Among project inputs, the Index for machinery and machine tools group increased during the week due to the 1 per cent rise in prices of complete tractors and electric motors. The expansion in the Index for transport equipment and parts during the week reflected 3 per cent rise in moped prices and 1 per cent rise in motorcycle prices.
While the overall ERIL Index remained unchanged during the preceding week ended May 18, the week witnessed a 5 per cent price rise in steel sheets, plates and strips, 2 per cent in MS bars and rounds, and 1 per cent in car chassis prices, along with price decline of 2 per cent in zinc, 3 per cent in roller bearings and sewing machines, and 1 per cent in batteries.
The ERIL Index, which seeks to measure the price impact of key inputs on project outlay on a week-by-week basis, is derived from the wholesale price indices of inputs that are relevant to project implementation. Apart from delays on various counts, prices and quantities of materials used in project implementation also hold the key to implementing the project within the stipulated time and cost framework.
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ERIL Index of Cost of Project Inputs
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(Week ended May 25, 2002)
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Wholesale Price Index: 1993-94=100
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Weight
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Index
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YoY Increase (%)
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(%)
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2002
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2001
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Non-metallic mineral
products
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2.516
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141.9
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-2.7
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16.4
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Structural clay
products
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0.230
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154.1
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-0.5
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14.7
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Cement
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1.731
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145.3
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-4.4
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21.4
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Basic metals, alloys,
metal products
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8.342
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141.0
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0.0
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2.1
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Iron and steel
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3.637
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137.6
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1.3
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0.0
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Machinery & Machine
tools
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8.363
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129.7
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1.1
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8.4
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Electrical machinery
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4.985
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112.7
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-0.8
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8.9
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Non-electrical
machinery
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3.379
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154.8
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3.3
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7.8
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Transport equipment
& parts
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4.295
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149.3
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2.7
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4.8
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Composite for project
inputs
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23.516
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138.6
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0.6
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6.4
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Overall WPI
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100.000
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162.9
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1.4
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5.6
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