Price Illustration:

Say, Price quoted by the Bidder is Rs. 50 per kg at the time of bidding.

Raw Material Price: (85% of total) Rs. 42.5 per kg

Other cost /Conversion Price (15% of total) Rs. 7.5 per kg
WPI of (Kraft Paper & Bags) 105

Price applicable on commissioning of the Plant (Say 2019)

Suppose, during commercial production month WPI of (Kraft Paper & Bags) is 112;
So, Percentage increase in Raw material price is 6.7%.
Therefore, Raw Material Price shall be - Rs. 42.5 + (42.5* 6.7%) = Rs. 45.35 per kg
Other cost /Conversion Price (15% of total) shall become= Rs. 7.5 per kg
Total Price shall be applicable as Rs. 45.35 + Rs. 7.5 = Rs. 52.85 per kg

Price Mechanism throughout the concession Period: