ERIL Index of Cost of Project Inputs, the composite project cost index, has increased feebly by 1.4 per cent during the first ten months of the ongoing fiscal, against 2.3 per cent during the corresponding period of the preceding year and 5.3 per cent in this period two years back. Capital goods production showed 0.5 per cent decline during April-December, whereas production of cement and alloy, non-alloy steel was up 3.7 per cent and 4.2 per cent respectively during the period. By the way, final project cost index numbers have tended to be slightly higher than those provisionally assessed earlier in recent months. 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.
Trends During January
The composite wholesale price index for basic metals, alloys & metal products rose 1.4 per cent during the month due to higher price of sheets (16 per cent), steel castings, silver and gold & gold ornaments (3 per cent each), melting scrap, aluminium and pig iron (2 per cent each) and steel rods, sponge iron, HRC, plates, steel structures, rounds, angles, wire rods, GP/GC sheets, ferro silicon, CRC and metal containers (1 per cent each). However, the price of ferro manganese and brass declined one per cent each.
The combined WPI for machinery & machine tools was up 0.3 per cent due to higher price of control equipments (6 per cent), loader and electrical wires (4 per cent each), conductor (3 per cent) and industrial furnaces, textile machinery, pump & assembly, electrical pumps, electric motors, ball/roller bearing and electronic PCB /micro circuit (1 per cent each). However, the price of sprinkler declined 7 per cent, communication equipments 3 per cent, fans 2 per cent and air conditioner & refrigerators and electric switch gears one per cent each.
The consolidated WPI for transport, equipment & parts increased 0.1 per cent t due to one per cent price increase in auto parts.
Among the other project materials, WPI of marbles declined 3.5 per cent and graphite amorphous 4 per cent, where as the WPI of concrete poles & posts escalated 7.5 per cent during the month.