sreetter TST TISTATT TPETERTUT Phone = 03672-286701 , Tele & Fax : 09672-236702 (Fax) tt aftaen, aes afters atte ererart tater) 03672-23251 ‘National Highways Authority of India °"" © ~wmemsor (Ministry of Shipping, Road Transport & Highways) Project Implementation Unit (P1.U.) ‘Sankar Mission Road, Opp. 1. College, Panigaon, Nagaon (Assam) - 782001 NHAUNGN/TLISMEC/14710 Date: 20.03.2018 To The Team Leader M/s SMEC International Pvt. Ltd. Opposite State Bank of India, Lanka Road Lumding, Dist: Nagaon, Assam-782 447 Sub: Linking factor due to change of base year of WPI from 2004-05 to 2011-12 Sir, Enclosed please find herewith the Policy Circular No. 18.30 dt: 20.03.2018 received from NHAI HQ regarding Linking factor due to change of base year of WPI from 2004-05 to 2011-12, which is self explanatory as done earlier in the Package No AS-26 (Bal). Thanking you, Encl: As stated above Yours faithfully (Alok/Kumar) DGM(T)Project Director Copy to: 1.The Regional Officer (NE), NHAI, RO-Guwahati, 4th Floor NEDFi House, G.S. Road, Dispur (Near Assam Secretariat) Guwahati- 781 006- for favour of kind information 2. The General Manage (NE), NHAI, G-5&6, Sector-10, Dwarka, New Delhi- 110075 for favour of kind information. _ 3. Sh. Ramesh Dhar, Engineer, M/s SMEC, Gurgaon, Haryana for information and necessary action. 4. The Project Managers, Pkg AS-24(Bal), AS-25(Bal), AS-26(Bal) & AS-27- for information and necessary action. 95093607, 25003614, Website ‘Atip|lwwwnhal orgTAT TTT TST E ATATRTOT ere me ors srscoeran corp aftrer te cert er) Soe) nicer anette ) National Highways Authority of India (Ministry of Road Transport and Highways) ‘WA-5 wa 6, aet-10, wee, AE feeett-110075 G15 8 6 Sect 10, Dwar, New Doi 110075 NHAI/Policy Guidelines/ Linking factor due to change of base year/2018 Policy No.18.30, Dated the 20" March 2018 (Approved by EC in its meeting held ont3.03.2018 under Agenda Item No 338.25) Sub: Linking factor due to change of base year of WPI from 2004-05 to 2011-12. Due to change of base year of Wholesale Price Index (WPI) from year 2004-05 to 2011-12-references have been received {rom field units of NHAI (from ROs & PIUs.) for ‘mechanism for adoption of WPI series 2011-12 for payment of price escalation in the contracts with base year of WP as 2011-12. The Wholesale Price Index (WPI) is an economy wide index published by Office of the Economic Adviser (OEA) since 1942, The base of the index, however, is being continuously revised and the latest series ts with the base 2011-12=100, The selection of commodities, weights structure and the source agencies for supply of price quotations are decided by @ Working Group constituted at the time of revision of the base. The Wholesale Price Index (WPI) series has been last fevised on May 12, 2017 by shifting base year from 2004-05 to 2011-12. Linking factor ‘given for conversion of WPI (2011-12) indices to WPI (2004-05) series should be used from ‘April 2017 onwards as notified in the website of OEA (0 yanic.in). 2. Some of the items of the old series have been dropped and some new issues have been included fn the new series. List of items dropped or revised from WPI series (2004 105) and list of items added or revised in WPI series (2011-12) are availabe on the website {urn eaindlustry.nic.in) of the Ministry of Commerce & Industry, Govt. of India. 3, The number of items in commodity basket of the index has increased from 676 in the old series to 697 items in the revised series, there has been a complete review of the ‘commodity basket. All such items, which have become obsolete or have become relatively less important vis-a-vis other items, have been dropped and new items, which have emerged as important ones, have been included. Thus, there cannot be a one to ‘one correspondence between items in the two series. Number of quotations has also been increased significantly from 5482 to 8331 and average number of price quotation per ‘commodity has increased from 8 quotations in 2004-05 to 12 quotations per commodity in 2011-12. 4. In order to maintain continuity in the time series data on wholesale price index, linking factors have been provided so that the new series, may be compared with the earlier one. The linking factor to link the WPI 2004-05 to WPI 2011-12 is developed by Using the Athematic conversion method as was the case during earlier transition to new The formula for toll revision uses WPI (All commodities) but the price adjusters scalation in NHAI use WPI for (a) All commodities (b) Cement, & Lime {¢) : ads), (¢) Rebars (f) Construction machinery etc.). OEA provides _comnmodites level and major group levels not at further «of linking factor for WPI to be followed are as under: -the price variation formula may be defined by dot ie. of WPI 2011-12). Generally tower level Scanned by Cam$canner dt Af 08/R0t a SMRMYY. vem nace nae mre vst Wn ee 2 sem ned out, Most neces Oe a ee acorang to Herarchica srucure Baca several levels of seg ce scan Cees, ve inde fon contracts stout eal ees et gk te ea acts at two dig teva four fut tevel of ag8"ee 6.2 acts 3 ‘ released by OEA till March 2017, White The old series: ‘of WPI (2004-05) ine launching the se year 2011-12, OEA has notifies the ne 2 2017, Daa tC te has towere? beth se far Ach i Sa are Pala in NHAL, WPI of 2004-05 series a ye used without applying ‘linking Factor ttt March, 2017. Linking (2011-12) indices tO WPI (2004-05) series shall be used from sed in NHAL with effect from Aprit 2017 are as 66.3. summary of linking factor to be us —raring Factors proposed to PE sed HAL = ane Group mr] COmeSPONA, eT group] wel for FY SoeAT FT unking Factors Karlie seces|_ of ters It Spaced vee coi(3)/Col (4) (2004-05) (Q01t-12) mrs | AO ow @ G) i) o Sar commodites —_| Arcommedines aero eer 6st LA err articles | Primary articles F500 | 128.8500 _[ 208 Fuel & Power Fuel & Power ser aoa [86.2750 | 2-20) Fut ractured | Nanufactured ProGuts sees [170.7083 | 1-427 Products cee TIme | Nanvracture arene, We | 75S 705033 | 1587 and plaster Grey Cement ardinary Portland cement eB | 107 we [ eet (rods) emer areet arse 08s, | 16. Foo} 81.9583 | 953 including fats Rebar 7S Bright 8915 sea | 79-8500 | 1-902 Construction Fcighted average of) Loader Tat se6T | 109.7335 | 1290 machinery @ {ut 0.00379) and (i conctets Vipvator & Mixer (wt, 0.01692) arapre average of monthly WPI from ‘Aprit-16 to Mar-17 «@ Formula for getting WP! (2004-05) of Construction Machinery by using Linking Factor: ” WPlex (0405)= 1.290 ¥(0.00379 * picget ray = 0.01602 WPlemerdeth Wri + 0.01692] ( honoer(11-12) 2X WPleone wwratr( 11207 7, Thisissue with the approval of the Competent Authority. qe (v.K. Sharma) Chief General Manager (Coord:) HQ/ROs/PIUs/CMUS/Site Offices. slation in Hindi Scanned by CamScanner