Indicating that there is perhaps some upturn in project execution, the ERIL Index of Cost of Project Inputs spurted 0.37 per cent in October, against decline during August-September. Also, final estimates of WPI of project investment-related material inputs (available till August) have tended to be higher than those provisionally assessed earlier. Nevertheless, the aggregate increase of 0.4 per cent in project cost index during April-October was one-third the rate in the same period of fiscal 2013-14.

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

Production of capital goods surged 11.6 per cent during September, after decline in preceding two months. The average growth over H1 was placed at 5.8 per cent. Production of cement increased 9.7 per cent and alloy and non-alloy steel output 2.3 per cent cumulatively.

Trends in October
The aggregate wholesale price index for non-metallic mineral products increased by 1.4 per cent during October due to 10 per cent price rise in marbles, 3 per cent each in bricks and tiles and white cement, 2 per cent each in glass bottles and bottle ware and lime, and 1 per cent in slag cement. However, the price of asbestos corrugated sheet declined by 1 per cent.

ERIL INDEX OF COST OF PROJECT INPUTS: OCTOBER 2014
Wholesale Price Index: 2004-05=100
Index
Y-o-Y
Increase(%)
Increase since
March (%)
2014-13
2013-12
2014
2013
Non-metallic
mineral products
173.2 4.8 0.7 3.4 -0.7
Structural clay products 195.6 10.2 8.0 6.1 5.9
Cement & lime 167.7 2.0 -3.5 2.2 -4.6
Basic metals, alloys &
metal products
166.4 1.1 -1.2 -0.7 -0.1
Ferrous metals 156.8 1.4 -1.0 -0.6 0.0
Non-ferrous metals 169.0 2.3 2.5 1.6 2.3
Machinery &
machine tools
134.9 2.3 2.6 1.3 1.9
Industrial machinery 152.5 1.5 2.9 0.5 1.8
Construction machinery 141.4 3.9 -0.1 2.8 -0.4
Air-conditioners &
refrigerators
120.8 3.3 3.5 1.2 2.8
Non-electrical machinery 127.2 2.5 0.9 2.3 1.2
Electrical machinery &
batteries
138.4 0.9 3.0 0.0 2.2
Electrical accessories,
wires & cables
157.1 4.8 4.2 3.7 7.1
Transport equipment
& parts
136.1 0.2 4.2 0.2 2.7
Automotives 135.3 -0.2 4.7 0.1 3.0
Auto parts 137.6 3.1 2.1 1.1 1.6
Composite ERIL Index
for project inputs
151.0 1.7 1.0 0.4 1.2
Overall WPI 183.9 1.8 7.2 2.0 6.2

The combined WPI for basic metals, alloys and metal products was up by 0.4 per cent due to higher price of metal containers (3 per cent), CRC, rounds and angles (2 per cent each) and GP/GC sheets, aluminium, billets, pencil ingots, wire rods, pig iron, sponge iron and joists and beams (1 per cent each). However, the price of steel rods, copper and copper ingots, melting scrap, sheets, copper wires (all types) and silver declined by 1 per cent.

The total WPI for machinery and machine tools rose by 0.2 per cent during the month due to higher price of UPS/stabilizer (7 per cent), heat exchanger (5 per cent), electric switches (3 per cent), engines (2 per cent), and chemical plant equipment and PVC insulated cable (1 per cent). However, the price of electric motors eased 2 per cent and ball/roller bearings, compressors and pump and assembly 1 per cent each.


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