Project cost index declines in Q1

The composite ERIL Index of Cost of Project Inputs slipped 0.2 per cent during April-June of the current fiscal, against 1.7 per cent rise in the same period of fiscal 2013, 1.4 per cent two years back and 2.3 per cent in Q1 of fiscal 2011. The composite WPI of manufactured products, which technically set the pace for project investment, increased 0.4 per cent during the quarter.

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 increased by 1.1 per cent during June due to 5 per cent price rise in slag cement and bricks and tiles, 3 per cent in marbles, and 1 per cent in polished granite. However, the price of glass bottles and bottle ware declined 1 per cent over the month.

The consolidated WPI for basic metals, alloys and metal products eased 0.5 per cent during the month due to lower price of silver (7 per cent), sponge iron, gold and gold ornaments, melting scrap and pencil ingots (2 per cent each); and ferrochrome, iron and steel wire, pig iron, steel: pipes and tubes, sheets, steel castings and wire rods (1 per cent each). However, the price of copper and copper ingots moved up 2 per cent, and angles and aluminium 1 per cent each.

The combined WPI for machinery and machine tools inched up by 0.2 per cent during the month due to 7 per cent price increase in PVC insulated cables, 4 per cent in electric switches, and 1 per cent each in electric motors and plastic machinery. However, the price of control equipment declined 2 per cent, and TV sets, computers, ball/roller bearing, lamps and insulators 1 per cent each.

The total WPI for transport equipment and parts was up 0.5 per cent during the month due to higher price of railway brake gear (3 per cent), parts of ships and boats etc. (2 per cent) and motor vehicles (1 per cent).