Indicating a gradual uptick in project investment, the ERIL Index of Cost of Project Inputs, the composite project cost index, has inched up for the fifth month in November, with the total rise adding up to around 0.9 per cent over the five-month period. The total increase in ERIL Index till November after netting 0.2 per cent decline in the first three months of the ongoing fiscal is nevertheless only one-third of the rate in the corresponding period of fiscal 2013. By the way, final project cost index numbers have tended to be higher than those provisionally assessed earlier in recent months.

Among the major investment goods categories, industrial machinery, air-conditioners and refrigerators, electrical wires and cables, automotives and structural clay products like bricks and tiles were in positive WPI zone, even as WPI for cement was running 5+ per cent lower during April-November.

The ERIL Index measures the overall project cost escalation in terms of WPI of material inputs relevant in project execution.

Trends in November

The combined wholesale price index for basic metals, alloys and metal products declined 0.1 per cent during November due to lower price of steel castings (3 per cent), pressure cookers (2 per cent), and CRC, lead and iron and steel wires (1 per cent each). However, the price of steel rods fell 10 per cent, steel: pipes and tubes 2 per cent and ferrosilicon, brass, silver, steel structures, pig iron and melting scrap 1 per cent each.

The aggregate WPI for machinery and machine tools rose 0.5 per cent during the month due to 9 per cent increase in price of electric switches, 5 per cent in sprinklers and TV accessories, 3 per cent in ball/roller bearings, 2 per cent in boilers and accessories, and 1 per cent each in machine tools, electric switchgears, lamps and battery dry cells.

However, the price of electric motors declined 3 per cent and hydraulic equipment and electronic PCB/micro circuits 1 per cent each.

The consolidated WPI for transport, equipment and parts declined 0.1 per cent due to lower price of motor vehicles (1 per cent).  However, the price of railway axles and wheel and bicycles moved up 1 per cent.

ERIL INDEX OF COST OF PROJECT INPUTS: NOVEMBER 2013
Wholesale Price Index: 2004-05=100
Index Increase (%) During Increase since March (%)
  2013/12 2012/11 2013 2012
Non-metallic mineral products 164.7 9.5 4.8 -1.3 3.1
Structural Clay Products 178.6 -1.2 4.2 6.6 2.6
Cement & Lime 162.8 -3.2 4.7 -5.5 3.1
Basic metals, alloys, metal products 164.0 -1.5 4.5 -0.5 2.0
Ferrous Metals 153.9 -1.3 4.1 -0.5 0.7
Non-ferrous Metals 164.4 2.1 2.7 1.8 1.8
Machinery & Machine tools 132.2 2.6 2.6 2.2 1.9
Industrial Machinery 150.5 2.8 2.9 2.0 1.5
Construction Machinery 136.1 -0.1 3.4 -0.4 3.3
Air Conditioner & Refrigerators 116.9 3.4 3.4 2.8 2.7
Non-electrical Machinery 124.1 0.8 0.9 0.8 0.4
Electrical Machinery & Batteries 137.0 2.5 2.1 2.2 2.1
Electrical Accessories, Wires & Cables 150.7 4.8 3.8 4.0 2.7
Transport equipment & parts 135.5 3.6 4.4 2.5 3.5
Automotives 135.3 4.0 4.5 2.7 3.6
Auto Parts 133.0 1.5 4.1 1.3 3.1
Composite ERIL Index for project inputs 148.3 0.8 3.9 0.7 2.3
Overall WPI 181.5 7.5 7.2 6.7 4.8

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