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PROJECT BUDGET

Price Adjustment on Civil works

(Ref. SCC - Cl.no. 4.3)

A. Calculation of Escalation on On-shore - Civil Works - Contract no.2

No Component Base Index Current Index Weightage Formula Factor Remarks

A Non-Adjustable A 0.20 0.20


CPI for wages of Industrial Workers (base
L Labour 133.00 148.00 b 0.20 b x Ln/Lo 0.22 2001=100) as per price indices published by
Indian labour Journal, Govt. of India.
Wholesale Price Index (WPI) for Cement (base
C Cement 219.80 225.18 c 0.10 c x Cn/Co 0.10 1993-94=100) as published by Economic
Advisor, Govt. of India.
WPI for Iron & Steel (plain carbon) (base
S Iron & steel 276.70 287.83 d 0.20 d x Sn/So 0.21 1993-91=100) as published by Economic
Advisor, Govt. of India.
WPI for All Commodities (base 1993-94=100)
M All Commodities 215.10 227.08 e 0.05 e x Mn/Mo 0.05 as published by Economic Advisor, Govt. of
India.
F HSD 32.02 32.29 f 0.20 f x Fn/Fo 0.20 Official price of diesel @ Bandipore by IOC
WPI for Machinery & Machine tools (base
Machinery & g x En/Eo
M 167.70 172.30 g 0.05 0.05 1993-94=100) as published by Economic
Machine tools
Advisor, Govt. of India.
A + b x Ln/Lo + c x Cn/Co + d x Sn/So + e x Mn/Mo + f x Fn/Fo
1.00 Sub total= 1.039
+ g x En/Eo
Escalation %age =Sub-Total - 100% 3.89%

Escalation Indices
Indices Remarks
Sl Month/ Week All Machinery &
Labour Cement Iron & steel HSD
Commodities Machine tools
1 3/7/2009 223.50 286.80 226.70 172.40
2 3/14/2009 225.20 288.90 227.00 172.10
3 3/21/2009 226.00 287.80 227.30 172.20
4 3/28/2009 226.00 287.80 227.30 172.50

Current index - 148.00 225.18 287.83 227.08 172.30 32.29

Jan-09