The annual escalation in average project cost as measured by composite ERIL Index of Cost of Project Inputs dropped to a low of 2.8 per cent in February 2013, sliding more or less continually from 6.6 per cent in April last year. The measure of overall project cost escalation was much lower than 4.8 per cent in WPI of manufactured products that technically sets the pace for project investment. When juxtaposed with dwindling capital goods production and weakening cement and steel, the phenomenon mirrors awfully sluggish project executions in the country. 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 aggregate wholesale price index for non-metallic mineral products rose 0.9 per cent during February due to 1 per cent price rise each in grey cement, bricks & tiles and glass bottles & bottle ware. However, the prices of slag cement (3 per cent) and polished granite, white cement, marbles and lime (1 per cent each) declined during the month.
The consolidated WPI for basic metals, alloys & metal products declined 0.6 per cent during the month following decline of 10 per cent in price of steel structures, 7 per cent in pencil ingots, 3 per cent each in iron castings and pig iron, 2 per cent each in sponge iron, gold & gold ornaments, silver and billets; and one per cent each in ferro chrome, metal containers, rounds, zinc, iron & steel wire and wire rods. However, the prices of melting scrap (8 per cent, steel castings and copper wire (all types) (4 per cent each), sheets (3 per cent) and pressure cooker, CRC, brass and angles (1 per cent each) moved up during the month.
The combined WPI for machinery & machine tools was up 0.2 per cent due to higher prices of pump & assembly (4 per cent), material handling equipment (3 per cent), lamps (2 per cent) and air conditioner & refrigerators, textile machinery, control equipments and electric motor starters (1 per cent each). However, the prices of ball/roller bearing dropped 3 per cent and hydraulic equipment 2 per cent during the month.
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ERIL INDEX OF COST OF PROJECT INPUTS: February 2013
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WHOLESALE PRICE INDEX: 2004-05=100
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Index
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Increase During (%)
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Increase since March (%)
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|
2013/12
|
2012/11
|
2012
|
2011
|
|
| Non-metallic mineral products |
164.8
|
7.0
|
6.9
|
5.6
|
4.3
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| Structural Clay Products |
167.1
|
1.1
|
10.5
|
0.3
|
9.0
|
| Cement & Lime |
168.6
|
5.0
|
6.2
|
3.4
|
4.4
|
| Basic metals, alloys, metal products |
165.0
|
1.9
|
10.5
|
1.0
|
9.2
|
| Ferrous Metals |
154.9
|
1.2
|
9.7
|
0.1
|
8.7
|
| Non-Ferrous Metals |
162.4
|
3.0
|
1.5
|
2.7
|
1.5
|
| Machinery & Machine tools |
129.3
|
2.4
|
3.1
|
2.3
|
2.4
|
| Industrial Machinery |
147.2
|
2.5
|
2.4
|
2.1
|
1.9
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| Construction Machinery |
136.5
|
3.6
|
1.1
|
3.5
|
0.6
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| Air Conditioner & Refrigerators |
113.9
|
3.5
|
0.9
|
3.5
|
0.9
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| Non-electrical Machinery |
123.2
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-0.6
|
3.7
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0.3
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3.2
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| Electrical Machinery, Batteries |
133.9
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2.3
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4.6
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2.3
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3.6
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| Electrical Accessories, Wires & Cables |
144.6
|
3.5
|
3.1
|
3.3
|
2.2
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| Transport equipment & parts |
131.3
|
4.4
|
3.5
|
3.9
|
2.8
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| Automotives |
130.5
|
4.4
|
3.5
|
3.9
|
2.8
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| Auto Parts |
131.2
|
3.7
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3.0
|
3.3
|
2.2
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| Composite ERIL Index for project inputs |
147.0
|
2.8
|
6.7
|
2.2
|
5.7
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| Overall WPI |
170.2
|
7.0
|
7.36
|
5.7
|
6.4
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