M AHAVITARAN INFRASTRUCTURE P LAN SECTION 8: PRICE V ARIATION FORMULAE

S ECTION 8

P RICE V ARIATION F ORMULAE

(FOR M AJOR M ATERIALS)

L IST OF I TEMS E LIGIBLE FOR P RICE V ARIATION

Sl. No. Description of Item Page No.

1. Aluminium Wound Distribution Transformers 3

2. Copper Wound Distribution Transformers/ Power Transformers 6

3. XLPE Insulated Cables (HT & LT) 9

4. PVC Insulated Cables (HT & LT) 12

5. RSJ Poles 20

6. Switchgear and Controlgear 21

7. Insulators 24

8. Isolator Metallics 26

9. Lead Acid Batteries 29

10. Battery Charger Equipment 31

11. AAC/AAAC/ACSR Conductors, All Sizes 33

12. Power Capacitors 36

13. PSC Poles 38

M AHARASHTRA STATE E LECTRICITY DISTRIBUTION COMPANY LTD. P AGE 1 OF 39

M AHAVITARAN INFRASTRUCTURE P LAN SECTION 8: PRICE V ARIATION FORMULAE

Preamble to the Price Variation Formulae

1. Base Price: For the purpose of valuing Price Variations for the Major items of Plant and
Equipment listed on the preceding page under “List of Items Eligible for Price Variation”, the Base
Price will be calcualated based on 80% (eighty percent) of the Contract Price for Supply and
Delivery of Materials to the Site, as set forth under Part 1 of Schedule 4 of the Schedule of Prices
(i.e, excluding the cost of design, civil works, erection, installation, testing, commissioning and
guarantee).
2. Adjustment Formula: The amount to be added to or deducted from the Interim Payment
Certificates for changes in cost (price variation) for the Major Plant and Equipment shall be
determined in accordance with the procedures and formulae set out in this Volume III – Price
Variation Formulae.
3. Adjustable Amount: The adjustable amount of each Interim Payment Certificate shall be the
difference between (i) the amount which, in the opinion of the Employer’s Representative, shall be
due to the Contractor pursuant to Sub-Clause 13.7, Payment, including the amount at base rates
and prices of the scheduled work carried out, and (ii) the amount as calculated in (i) above and
included in the last preceding Interim Payment Certificate issued by the Employer’s
Representative.
4. Adjusted Amount: The adjusted amount of each Interim Payment Certificate shall be determined
by applying the Price Adjustment Factor to the adjustable amount, and shall become payable to
the Contractor in accordance with the provisions of Clause 13.7, subject to any deductions
therefrom for penalties, liquidated damages, or any other monies due to the Employer from the
Contractor.
5. Dates for Application of Changes in Cost: Work which is carried out during the first six (6)
months of the Time for Completion will be carried out at the base rates and prices in accordance
with the payment Schedule, and will not be subject to any adjustment for rises or falls in the cost
of labor, equipment, plant, materials or other inputs to the Works. Increases or decreases in the
cost of such inputs shall be adjusted on a monthly basis thereafter. The first statement of price
adjustment will be prepared at the end of the seventh month after the Commencement Date, and
the work done during the seventh month shall be taken into account for the purpose of calculating
any price adjustment for that month in accordance with the procedures set forth in Volume III,
Section 8, Price Variation Formulae. For subsequent statements, the cost of the work done during
every month shall be taken into account. At the completion of the work, the work done during the
last month, or fraction thereof, shall be taken into account.
6. Adjustment due to Shortfall in Progress: In the event the Contractor fails to attain the rate of
progress, as per the approved program and schedule of progress, in the seventh and subsequent
months of the construction period and the shortfall in progress is covered up by him during
subsequent months within the Intended Completion Period then the price adjustment of such work
which was scheduled to be done in the previous month shall be notionally given based upon the
price index which would be applicable for that month in which such work was required to be done.
7. Failure to Complete Within the Time for Completion: If the Contractor fails to complete the
whole of the Works within the Time for Completion, adjustment of prices thereafter until the date
of completion of the Works shall be made using either each index or price applicable on the date
forty nine (49) days prior to the expiry of the Time for Completion, or the current index or price,
whichever is more favorable to the Employer; provided that, if an extension of time is granted in
accordance with Sub-Clause 8.3, the above provision shall apply to the extended time for
completion.
8. Submission of Claims: The Contractor will be responsible to submit his claim for Price Variation
of Major Plant and Equipment along with his claims for Interim Payments, duly calculated as per
the applicable formulae and supported by relevant IEEMA circulars.

M AHARASHTRA STATE E LECTRICITY DISTRIBUTION COMPANY LTD. P AGE 2 OF 39

M AHAVITARAN INFRASTRUCTURE P LAN SECTION 8: PRICE V ARIATION FORMULAE

st
IEEMA/PVC/DIST-AL/2003 Effective from: 1 June 2003

PRICE VARIATION CLAUSE FOR ALUMINIUM WOUND

DISTRIBUTION TRANSFORMERS
COMPLETE WITH ALL ACCESSORIES AND COMPONENTS
(of ratings up to 10 MVA and voltage up to 33KV)
supplied against domestic contracts

The price quoted/confirmed is based on the input cost of raw materials/components and labor
cost as on the date of opening of tender and the same is deemed to be related to prices of
raw materials and all India average consumer price index number for industrial workers as
specified in the price variation clause given below. In case of any variation in these prices and
index numbers, the price payable shall be subject to adjustment, up or down in accordance
with the following formula:

Po AL ES IS IM TB W
P = ----- 13 + 17 ------ + 33 ------ + 9 ------ + 5 ------ + 11 ----- + 12 -----
100 ALo ESo ISo IMo TBo Wo

Wherein

P = Ex works price payable as adjusted in accordance with the above formula.

Po = Ex works price quoted/confirmed.

ALo = Price of EC Grade Aluminium rods (Properzi rods) (refer notes).

st
This price is as applicable on the 1 working day of the month, one month prior to the
date of opening of tender.

ESo = C&F price of CRGO Electrical Steel Sheets (refer notes)

st
This price is as applicable on the 1 working day of the month, one month prior to the
date of opening of tender.

ISo = Wholesale price index number for `Iron & Steel (Base: 1993-94=100) (refer notes).
st
This index number is as applicable for the week ending 1 Saturday of the month,
three months prior to the date of opening of tender.

IMo = Price of Insulating materials (refer notes)

st
This price is as applicable on the 1 working day of the month, one month prior to the
date of opening of tender.

TBo = Price of Transformer Oil Base Stock (refer notes)

st
This price is as applicable on the 1 working day of the month, two months prior to
the date of opening of tender.

Wo = All India average consumer price index number for industrial workers, as published by
the Labor Bureau, Ministry of Labor, Govt. of India (Base 1982 = 100)
This index number is as applicable on the first working day of the month, Three
months prior to the date of opening of tender.

For example, if date of opening of tender falls in May 2004, the applicable prices of
Transformer Oil Base Stock(TBo) should be for the month March 2004, where as the
applicable prices of Aluminium(ALo), CRGO Steel Sheets (Eso) and insulating material (IMo)

M AHARASHTRA STATE E LECTRICITY DISTRIBUTION COMPANY LTD. P AGE 3 OF 39

M AHAVITARAN INFRASTRUCTURE P LAN SECTION 8: PRICE V ARIATION FORMULAE

st
should be as on 1 April 2004 and Wholesale price index number for `Iron & Steel’ (ISo)
should be for the week ending first Saturday of February 2004 and all India average
consumer price index no. (Wo) should be for the month of February 2004.

The above prices and indices are as published by IEEMA vide circular reference number
IEEMA(PVC)/TRF/-/ - prevailing as on first working day of the month i.e. one month prior to
the date of opening of tender.

AL = Price of EC Grade Aluminium rods (Properzi rods) (refer notes)

st
This price is as applicable on the 1 working day for the month, one month prior to
the date of delivery.

ES = C&F price of CRGO Electrical Steel Sheets (refer note)

st
This price is as applicable on the 1 working day for the month, one month prior to
the date of delivery.

IS = Wholesale price index number for `Iron & Steel (Base: 1993-94=100)
(refer notes)
st
This index number is as applicable for the week ending 1 Saturday of the month,
three months prior to the date of delivery.

IM = Price of Insulating Materials (refer notes)

st
This price is as applicable on the 1 working day of the month, one month prior to the
date of delivery.

TB = Price of Transformer Oil Base Stock (refer notes)

st
This price is as applicable on the 1 working day of the month, two months prior to
the date of delivery.

W= All India average consumer price index number for industrial workers, as published by
the Labor Bureau, Ministry of Labor, Govt. of India (Base 1982 = 100)
This index number is as applicable on the first working day of the month, three
months prior to the date of delivery.

For example, if date of delivery in terms of clause given below falls in December 2004, the
applicable price of Transformer Oil Base Stock [TB] should be for the month of October 2004;
where as applicable prices of Aluminium (AL), CRGO Steel Sheets [ES], and Insulating
st
material [IM] should be as on 1 November 2004 and Wholesale price index number for `Iron
and Steel’ [IS] should be for the week ending first Saturday of September 2004 and all India
average consumer price index [W] should be for the month of September 2004.

The “date of delivery” is the date on which the transformer is notified as being ready for
inspection/dispatch or the contracted delivery date, whichever is earlier, wherever supplies
are effected within contractual delivery period. In case supplies are effected after the
contractual delivery period, the date of delivery for PV purpose would be the one of the above
two on which the price variation is less.

NOTES : a] All prices of raw materials are exclusive of modvatable excise/CV duty
amount and exclusive of any other central, state or local taxes, octroi etc.
Transformer manufacturers import major raw materials like CRGO Steel
Sheets, TOBS and Insulating Pressboards etc. The landed cost of these
imported raw materials includes applicable custom duty but exclusive of
modvatable CVD.

b] All prices are as on first working day of the month.

c] The details of prices are as under.

M AHARASHTRA STATE E LECTRICITY DISTRIBUTION COMPANY LTD. P AGE 4 OF 39

M AHAVITARAN INFRASTRUCTURE P LAN SECTION 8: PRICE V ARIATION FORMULAE

1] The price of Aluminium in Rs./MT is the average Ex–works price of

EC Grade Aluminium rods quoted by the primary producers
confirming to specifications IS:5484.

2] The price of CRGO Electrical Steel Sheets suitable for transformers

of rating up to 10MVA and voltage up to 33KV (in Rs./MT) is the
average C&F price in US $ per MT converted into Indian Rupees with
st
applicable exchange rate prevailing as on 1 working day o f t h e
month, as quoted by primary producers. This price is the landed cost,
inclusive of applicable customs duty only but exclusive of
countervailing duty.

3] The Wholesale price index number for `Iron & Steel’ is as published
by the Office of Economic Advisor, Ministry of Industry, Govt. of India,
N e w D e l h i w i t h b a s e 1 9 9 3 -94=100.This wholesale price index
number is being published weekly on provisional basis. However,
the same gets finalized after eight weeks and is normally available
after two months . Therefore, I EEMA are considering in their
calculations this final index for the first Saturday of the months two
months prior to the date of which the prices of other raw materials
such as AI, IM are published for the corresponding month.

4] The average price of Insulting materials (in Rs./Kg) of pre-

compressed pressboards of size 3 mm and 10 mm thick,
3200mm x 4100 mm C&F price in free currency per MT converted
into Indian Rupees with applicable exchange rates prevailing as on
st
1 working day of the month as quoted by primary suppliers. This
price is the landed cost, inclusive of applicable customs duty only but
exclusive of countervailing duty.

5] The price of TOBS is C&F price (in Rs./K.Ltr.) for N-60 grade Oil as
st
published in ICIS-LOR bulletin for the 1 week of the previous month.
This price is normally published in US$ per US Gallon, which is
st
converted in Rs./K.Ltr. with applicable exchange rate prevailing on 1
working day of the subsequent month. This price is the landed cost,
inclusive of applicable customs duty only but exclusive of
countervailing duty.

d] Some purchasers are purchasing oil immersed Transformers from

manufacturers without first filling of oil. Oil for first filling is procured
and filled by the purchasers. For such supplies PVC formula,
excluding Oil will apply as

Po AL ES IS IM W
P = ------ 13 + 17 ------ + 33 ------ + 9 ------ + 5 ------ + 12 ------
89 ALo ESo ISo IMo Wo

Where description of P, Po, AL, ES, IS, IM and W etc. remains same as mentioned earlier.

SIGNATURE OF THE TENDERER

M AHARASHTRA STATE E LECTRICITY DISTRIBUTION COMPANY LTD. P AGE 5 OF 39

M AHAVITARAN INFRASTRUCTURE P LAN SECTION 8: PRICE V ARIATION FORMULAE

st
IEEMA/PVC/DIST-CU/2003 Effective from : 1 June 2003.

PRICE VARIATION CLAUSE FOR COPPER WOUND

DISTRIBUTION TRANSFORMERS
COMPLETE WITH ALL ACCESSORIES AND COMPONENTS
(Of ratings up to 10 MVA and voltage up to 33KV)
supplied against domestic contracts

The price quoted/confirmed is based on the input cost of raw materials/components and labor
cost as on the date of opening of tender and the same is deemed to be related to prices of
raw materials and all India average consumer price index number for industrial workers as
specified in the price variation clause given below. In case of any variation in these prices
and index numbers, the price payable shall be subject to adjustment, up or down in
accordance with the following formula:

Po C ES IS IM TB W
P = ------ 13 + 23 ------ + 27 ------- + 9 ------- + 5 ------- + 11 ------- + 12 ----
100 Co Eso ISo Imo TBo Wo

Wherein
P = Ex works price payable as adjusted in accordance with the above formula.

Po = Ex works price quoted/confirmed.

Co = Average LME settlement price of copper wire bars (refer notes)

This price is as applicable for the month, two months prior to the date of opening of
tender.

ESo = C&F price of CRGO Electrical Steel Sheets (refer notes)

st
This price is as applicable on the 1 working day of the month, one month prior to the
date of opening of tender.

ISo = Wholesale price index number for `Iron & Steel (Base: 1993-94=100) (refer notes).
st
This index number is as applicable for the week ending 1 Saturday of the month,
three months prior to the date of opening of tender.

IMo = Price of Insulating materials (refer notes)

st
This price is as applicable on the 1 working day of the month, one month prior to the
date of opening of tender.

TBo = Price of Transformer Oil Base Stock (refer notes)

st
This price is as applicable on the 1 working day of the month, two months prior to
the date of opening of tender.

Wo = All India average consumer price index number for industrial workers, as published by
the Labor Bureau, Ministry of Labor, Govt. of India (Base 1982 = 100)
This index number is as applicable on the first working day of the month, Three
months prior to the date of opening of tender.

For example, if date of opening of tender falls in May 2004, the applicable prices of Copper
Wire Bars (Co) and Transformer Oil Base Stock (TBo) should be for the month March 2004,
where as the applicable prices of CRGO Steel Sheets (ESo), and insulating material (IMo)
st
should be as on 1 April 2004 and Wholesale price index number for `Iron & Steel’ (ISo)
should be for the week ending first Saturday of February 2004 and all India average
consumer price index no. (Wo) should be for the month of February 2004.

M AHARASHTRA STATE E LECTRICITY DISTRIBUTION COMPANY LTD. P AGE 6 OF 39

M AHAVITARAN INFRASTRUCTURE P LAN SECTION 8: PRICE V ARIATION FORMULAE

The above prices and indices are as published by IEEMA vide circular reference number
IEEMA(PVC)/TRF/-/ - prevailing as on first working day of the month… i.e. one month prior to
the date of opening of tender.

C = Average LME settlement price of copper wire bars (refer notes)

This price is as applicable for the month, two months prior to the date of delivery.

ES = C&F price of CRGO Electrical Steel Sheets (refer note)

st
This price is as applicable on the 1 working day for the month, one month prior to
the date of delivery.

IS = Wholesale price index number for `Iron & Steel (Base: 1993-94=100) (refer notes)
st
This index number is as applicable for the week ending 1 Saturday of the month,
three months prior to the date of delivery.

IM = Price of Insulating Materials (refer notes)

st
This price is as applicable on the 1 working day of the month, one month prior to the
date of delivery.

TB = Price of Transformer Oil Base Stock (refer notes)

st
This price is as applicable on the 1 working day of the month, two months prior to the
date of delivery.

W = All India average consumer price index number for industrial workers, as published by
the Labor Bureau, Ministry of Labor, Govt. of India (Base 1982 = 100)
This index number is as applicable on the first working day of the month three months
prior to the date of delivery.

For example, if date of delivery in terms of clause given below falls in December 2004, the
applicable prices of Copper Wire Bars [C] and Transformer Oil Base Stock(TB) should be for
the month of October 2004; where as applicable prices of CRGO Steel Sheets [ES],
st
Insulating material [IM] should be as on 1 November 2004 and Wholesale price index
number for `Iron and Steel’ [IS] should be for the week ending first Saturday of September
2004 and all India average consumer price index no. [W] should be for the month of
September 2004.

The “date of delivery” is the date on which the transformer is notified as being ready for
inspection/dispatch or the contracted delivery date, whichever is earlier, wherever supplies
are effected within contractual delivery period. In case supplies are effected after the
contractual delivery period, the date of delivery for PV purpose would be the one of the above
two on which the price variation is less.

NOTES :
a] All prices of raw materials are exclusive of modvatable excise/CV duty amount
and exclusive of any other central, state or local taxes, octroi etc. Transformer
manufacturers import major raw materials like Copper, CRGO Steel Sheets,
TOBS and Insulating Pressboards etc. The landed cost of these imported raw
materials includes applicable custom duty but exclusive of modvatable CVD.

b] All prices are as on first working day of the month.

c] The details of prices are as under

1] The LME price of Copper Wire Bars (in Rs./MT) is the LME average
settlement price of Copper Wire Bars for one month prior to the month
of the circular converted into Indian Rupees with applicable exchange
st
rates prevailing as on 1 working day of the subsequent month. This
price is the landed cost, inclusive of applicable customs duty only but
exclusive of countervailing duty.

M AHARASHTRA STATE E LECTRICITY DISTRIBUTION COMPANY LTD. P AGE 7 OF 39

M AHAVITARAN INFRASTRUCTURE P LAN SECTION 8: PRICE V ARIATION FORMULAE

2] The price of CRGO Electrical Steel Sheets suitable for transformers

of rating up to 10MVA and voltage up to 33KV (in Rs./MT) is the
average C&F price in US $ per MT converted into Indian Rupees with
st
applicable exchange rate prevailing as on 1 working day of the
month, as quoted by primary producers. This price is the landed
cost, inclusive of applicable customs duty only but exclusive of
countervailing duty.

3] The Wholesale price index number for `Iron & Steel’ is as published by
the Office of Economic Advisor, Ministry of Industry, Govt. of India,
New Delhi with base 1993-94=100. This wholesale price index number
is being published weekly on provisional basis. However, the same
gets finalized after eight weeks and is normally available after two
months. Therefore, IEEMA are considering in their calculations this
final index for the first Saturday of the months two months prior to the
date of which the prices of other raw materials such as AI, IM are
published for the corresponding month.

4] The average price of Insulating materials (in Rs./Kg) of pre-compressed

pressboards of size 3 mm and 10 mm thick, 3200 mm x 4100 mm C&F
price in free currency per MT converted into Indian Rupees with
st
applicable exchange rates prevailing as on 1 working day of the
month as quoted by primary suppliers. This price is the landed cost,
inclusive of applicable customs duty only but exclusive of countervailing
duty.

5] The price of TOBS is C&F price (in Rs./K.Ltr.) for N-60 grade Oil
st
published in ICIS-LOR bulletin for the 1 week of the previous month.
This price is normally published in US$ per US Gallon, which is
st
converted in Rs./K.Ltr. with applicable exchange rate prevailing on 1
working day of the subsequent month. This price is the landed cost,
inclusive of applicable customs duty only but exclusive of countervailing
duty.

d] Some purchasers are purchasing oil immersed Transformers from

manufacturers without first filling of oil. Oil for first filling is procured and
filled by the purchasers. For such supplies PVC formula, excluding Oil
will apply as

Po C ES IS IM W
P = ------ 13 + 23 ------ + 27 ------ + 9 ------ + 5 ------ + 12 ------
89 Co Eso ISo Imo Wo

Where description of P, Po, C, ES, IS, IM and W etc. remains same as mentioned earlier.

SIGNATURE OF THE TENDERER

M AHARASHTRA STATE E LECTRICITY DISTRIBUTION COMPANY LTD. P AGE 8 OF 39

M AHAVITARAN INFRASTRUCTURE P LAN SECTION 8: PRICE V ARIATION FORMULAE

MATERIAL PRICE VARIATION CLAUSE FOR

XLPE INSULATED CABLES

The price quoted/confirmed is based on the input cost of raw materials/components as on the date of
tender opening and the same is deemed to be related to the prices of raw materials as specified in
the price variation clause given below. In case of any variation in these prices, the price payable shall
be subject to adjustment up or down in accordance with the following formula:

Formula for Aluminium Conductors XLPE Insulated Cables:

P = Po + AlF (Al - Alo)

Wherein,

P = Ex- Works Price payable in Rs. per KM as

adjusted in accordance with the price variation formula

Po = Ex-works price quoted/confirmed in Rs. per KM

AlF = Variation factor for Aluminium as per Annexure I:

Table-1 for Aluminium Conductor Power Cable

Table-2 for Single Core 1.1 KV Aluminium Armoured cable

(Variation factor is to be selected depending upon type

and size of cable).

Alo = Price of EC grade Aluminium rods ( properzi rods) conforming

to specification IS:5484 in Rs./MT [ Note C].

The above price for raw material viz. Alo is that as published by IEEMA prevailing as on the
first working day of the calendar month, ONE month prior to the date of tender opening e.g.
if tender is opened in May,2001, the applicable prices should be those prevailing as on 1st
April,2001.

Al = Price of EC grade Aluminium This price is as applicable

rods(Properzi Rods) conforming on 1st working day
to specification IS:5484 of the month, TWO MONTHS
in Rs./MT [See Note C] prior to the date of delivery

Example:- If the date of delivery in terms of clause given below falls in December 2001, the
applicable price of raw material should be as published by IEEMA prevailing as on 1st
October, 2001.

The date of delivery shall be the date on which the equipment/material is notified as being ready for
inspection/dispatch or the contracted delivery date whichever is earlier whenever supplies are
effected within contractual delivery period. In case the supplies are effected after the contractual
delivery period, the date of delivery for P.V. purpose would be the one out of the above two on which
price variation is less.

Notes: (a) All prices of raw materials are exclusive of modvatable excise/CV duty amount and
exclusive of any other Central, State or Local taxes, octroi etc.

(b) All prices are as on first working day of the month.

M AHARASHTRA STATE E LECTRICITY DISTRIBUTION COMPANY LTD. P AGE 9 OF 39

M AHAVITARAN INFRASTRUCTURE P LAN SECTION 8: PRICE V ARIATION FORMULAE

(c) The price of Aluminium (in Rs./MT) is the average ex-works price of EC grade
Aluminium rods quoted by the primary producers conforming to Specification
IS:5484.

VARIATION FACTORS FOR ALUMINIUM (AIF)

(For PVC Insulated Aluminium conductor Power Cable)

Note: This is for application in material price variation clause for insulated cables.

Ref: IEEMA/PVC/AL-CU-CABLE/2001,
Effective from: 1st January,2001

Nominal Cross 1 Core 2 Core 3 Core 3.5 Core 4 Core

Sectional Area
(In sq.mm.)
2.5 0.007 0.014 0.021 - 0.028
4 0.011 0.023 0.034 - 0.046
6 0.017 0.034 0.052 - 0.069
10 0.029 0.053 0.087 - 0.116
16 0.046 0.091 0.137 - 0.183
25/16 0.073 0.146 0.219 0.262 0.292
35/16 0.101 0.202 0.302 0.345 0.404
50/25 0.137 0.273 0.410 0.478 0.547
70/35 0.197 0.395 0.593 0.687 0.791
95/50 0.274 0.548 0.821 0.949 1.095
120/70 0.346 0.691 1.036 1.221 1.382
150/70 0.425 0.853 1.279 1.464 1.706
185/95 0.533 1.070 1.605 1.861 2.140
225/120 0.655 1.310 1.965 2.287 2.620
240/120 0.703 1.400 2.099 2.421 2.799
300/150 0.879 1.757 2.635 3.033 3.514
400/185 1.126 2.249 3.374 3.873 4.498
500 1.418 2.838 4.256 - 5.675
625 1.828 3.663 5.494 - 7.326
800 2.340 4.679 7.018 - 9.357
1000 2.951 5.890 8.834 - 11.779

M AHARASHTRA STATE E LECTRICITY DISTRIBUTION COMPANY LTD. P AGE 10 OF 39

M AHAVITARAN INFRASTRUCTURE P LAN SECTION 8: PRICE V ARIATION FORMULAE

VARIATION FACTOR FOR ALUMINIUM (AIF)

(For Single core 1.1KV Aluminium Armoured cable)

Note: This is for application in material price variation Clause for Insulated cables

Ref: IEEMA/PVC/AL-CU-CABLE/2001, Effective from : 1st January, 2001

Cable Size Cross Section Area Aluminium Factor for

(In Sq.mm.) Aluminium Armoured Cable

1X4 0.0685
1x6 0.0795
1 X 10 0.1017
1 X 16 0.1303
1 x 25 0.1693
1 x 35 0.2090
1 x 50 0.2597
1 x 70 0.3360
1 x 95 0.4567
1 x 120 0.5443
1 x 150 0.6427
1 x 185 0.7743
1 x 240 0.9737
1 x 300 1.2582
1 x 400 1.5502
1 x 500 1.8958
1 x 625 2.3650
1 x 800 2.9306
1 x 1000 3.7666

Above factors incorporate the variation factors for Aluminium used in non-magnetic armoring
also.

SIGNATURE OF THE TENDERER

M AHARASHTRA STATE E LECTRICITY DISTRIBUTION COMPANY LTD. P AGE 11 OF 39

M AHAVITARAN INFRASTRUCTURE P LAN SECTION 8: PRICE V ARIATION FORMULAE

MATERIAL PRICE VARIATION CLAUSE FOR

PVC INSULATED CABLES

The price quoted/confirmed is based on the input cost of raw materials/components as on the date of
tender opening and the same is deemed to be related to the prices of raw materials as specified in
the price variation clause given below. In case of any variation in these prices, the price payable shall
be subject to adjustment up or down in accordance with the following formulae:

Formula(A): For Aluminium Conductor PVC Insulated Cables

P = Po + AlF (Al - Alo) + CCFAl (CC-CCo)

Formula(B): For Copper Conductor PVC Insulated Cables

P = Po + CuF (Cu - Cuo) + CCFCu (CC-CCo)

Formula(C): For Steel armored PVC Insulated Copper

Control Cables (Size 1.5 sq.mm. & 2.5 sq.mm.)
P = Po + CuF (Cu-Cuo)+ CCFCu (CC-CCo)+FeF (Fe-Feo)
Wherein :

P = Ex- Works Price payable in Rs. per KM as adjusted in accordance with the price
variation formula

Po = Ex-works price quoted/confirmed in Rs. per KM

AlF = Variation Factor for Aluminium as per Annexure-I:

Table 1 for Aluminium Conductor Power Cable

Table 2 for Single Core 1.1 KV Aluminium armored Cable
(Variation Factor is to be selected depending upon the type and size of cable).

Alo = Price of EC grade Aluminium rods (properzi rods) conforming to specification IS:5484
in Rs./MT ( Note C-1).

CCFAl = Variation Factor for PVC compound as per Annexure-II for PVC Insulated Aluminium
Conductor Cable (Variation factor is to be selected depending upon the type and size
of cable)

CCo = Price of PVC compound in Rs./MT of grade CW-22 (Note C- 2).

CuF = Variation Factor for copper as per Annexure III (variation factor is to be selected
depending upon type and size of cable).

Cuo = Price of CC Copper Rods in Rs./MT (Note C-3)

CCFCu = Variation Factor for PVC compound as per Annexure IV for PVC insulated Copper
Control Cable.
(Variation factor is to be selected depending upon the type and size of cable).

FeF = Variation factor for Steel as per Annexure -V for Steel armored PVC Insulated copper
control cable.

Feo = Price of Steel strips/Steel wire in Rs./MT (The relevant price of Steel strip or Steel
wire is to be selected depending upon the type of armoring of the cable) [Note-C -4]

The above prices for raw materials are those as published by IEEMA prevailing as on the first working
day of the calendar month, ONE month prior to the date of tender opening e.g. if tender is opened in
May 2001, the applicable prices should be those prevailing as on 1st April,2001.

M AHARASHTRA STATE E LECTRICITY DISTRIBUTION COMPANY LTD. P AGE 12 OF 39

M AHAVITARAN INFRASTRUCTURE P LAN SECTION 8: PRICE V ARIATION FORMULAE

Al = Price of EC grade Aluminium

rods(Properzi Rods) conforming
to specification IS:5484
in Rs./MT (See Note C-1)
These Prices as applicable
st
CC = Price of PVC compound in on 1 working day of the
Rs./MT of Grade CW-22 month , TWO MONTHS
[See Note C-2] prior to the date of delivery.

Cu = Price of CC Copper Rods in

Rs./MT (See Note C-3)

Fe = Price of Steel strips/Steel

wire in Rs./MT
(See Note C-4)

Example:- If the date of delivery in terms of clause given below falls in December 2001, the applicable
prices of raw material should be as published by IEEMA prevailing as on 1st October, 2001.

The date of delivery shall be the date on which the equipment/material is notified as being ready for
inspection/dispatch or the contracted delivery date whichever is earlier whenever supplies are
effected within contractual delivery period. In case the supplies are effected after the contractual
delivery period, the date of delivery for P.V. purpose would be the one out of the above two on which
price variation is less.

Notes: (a) All prices of raw materials are exclusive of modvatable excise/CV duty amount and
exclusive of any other Central, State or Local taxes, octroi etc.

(b) All prices are as on first working day of the month.

(c) The details of prices are as under:

1) The price of Aluminium ( in Rs./MT) is the average ex-works price of EC grade

rods quoted by the primary producers conforming to Specification IS:5484.

2) Price of PVC compound ( in Rs./MT) is the ex-works price as quoted by the

manufacturer for their grade CW-22.

3) Price of CC copper rods ( in Rs./MT) is ex-godown/ex-works price as quoted by

the primary producer.

4) Price of Galvanized Steel strips/Steel wire ( in Rs./MT) is Ex-works price as

quoted by the manufacturer for:
(i) 4 mm x 0.8 mm Steel Strips
OR
(ii) Size 1.4 mm/1.6 mm diameter G.I. wire

M AHARASHTRA STATE E LECTRICITY DISTRIBUTION COMPANY LTD. P AGE 13 OF 39

 M AHAVITARAN INFRASTRUCTURE P LAN SECTION 8: PRICE V ARIATION FORMULAE

ANNEXURE – I (Table – 1 of 2)

VARIATION FACTORS FOR ALUMINIUM (AIF)

(For PVC insulated Aluminium conductor Power Cable)

Note: This is for application in material price variation clause for insulated cables

Ref: IEEMA/PVC/AL-CU-CABLE/2001, Effective from: 1st January,2001

Nominal Cross 1 Core 2 Core 3 Core 3.5 Core 4 Core

Sectional Area
(In sq.mm.)
2.5 0.007 0.014 0.021 - 0.028
4 0.011 0.023 0.034 - 0.046
6 0.017 0.034 0.052 - 0.069
10 0.029 0.053 0.087 - 0.116
16 0.046 0.091 0.137 - 0.183
25/16 0.073 0.146 0.219 0.262 0.292
35/16 0.101 0.202 0.302 0.345 0.404
50/25 0.137 0.273 0.410 0.478 0.547
70/35 0.197 0.395 0.593 0.687 0.791
95/50 0.274 0.548 0.821 0.949 1.095
120/70 0.346 0.691 1.036 1.221 1.382
150/70 0.425 0.853 1.279 1.464 1.706
185/95 0.533 1.070 1.605 1.861 2.140
225/120 0.655 1.310 1.965 2.287 2.620
240/120 0.703 1.400 2.099 2.421 2.799
300/150 0.879 1.757 2.635 3.033 3.514
400/185 1.126 2.249 3.374 3.873 4.498
500 1.418 2.838 4.256 - 5.675
625 1.828 3.663 5.494 - 7.326
800 2.340 4.679 7.018 - 9.357
1000 2.951 5.890 8.834 - 11.779

M AHARASHTRA STATE E LECTRICITY DISTRIBUTION COMPANY LTD. P AGE 14 OF 39

 M AHAVITARAN INFRASTRUCTURE P LAN SECTION 8: PRICE V ARIATION FORMULAE

ANNEXURE - I (Table – 2 of 2)

VARIATION FACTOR FOR ALUMINIUM (AIF)

(For Single core 1.1KV Aluminium Armoured cable)

Note: This is for application in material price variation Clause for Insulated cables

Ref: IEEMA/PVC/AL-CU-CABLE/2001, Effective from : 1st January, 2001

Cable Size Cross Section Area Aluminium Factor for

(In Sq.mm.) Aluminium Armoured Cable

1X4 0.0685
1x6 0.0795
1 X 10 0.1017
1 X 16 0.1303
1 x 25 0.1693
1 x 35 0.2090
1 x 50 0.2597
1 x 70 0.3360
1 x 95 0.4567
1 x 120 0.5443
1 x 150 0.6427
1 x 185 0.7743
1 x 240 0.9737
1 x 300 1.2582
1 x 400 1.5502
1 x 500 1.8958
1 x 625 2.3650
1 x 800 2.9306
1 x 1000 3.7666

Above factors incorporate the variation factors for Aluminium used in non-magnetic armoring also
.

M AHARASHTRA STATE E LECTRICITY DISTRIBUTION COMPANY LTD. P AGE 15 OF 39

 M AHAVITARAN INFRASTRUCTURE P LAN SECTION 8: PRICE V ARIATION FORMULAE

ANNEXURE – II

VARIATION FACTORS FOR PVC COMPOUND (CCFAI)

(For PVC insulated Aluminium Conductor Power Cable)
Note: This is for application in material price variation clause for insulated cables
Ref: IEEMA/PVC/AL-CU-CABLE/2001, Effective from : 1st January,2001

Cross 1 Core 2 Core 3 Core 3.1/2 Core 4 Core

Section Unarm Unarm Arm Unarm Arm Unarm Arm Unarm Arm
in sq.mm.

2.5 0.079 0.125 0.139 0.141 0.157 - - 0.161 0.179

4 0.094 0.140 0.156 0.164 0.182 - - 0.188 0.209
6 0.101 0.154 0.171 0.179 0.199 - - 0.198 0.220
10 0.114 0.194 0.216 0.214 0.238 - - 0.249 0.277
16 0.142 0.234 0.246 0.279 0.290 - - 0.328 0.345
25 0.171 0.288 0.303 0.364 0.383 0.422 0.444 0.443 0.466
35 0.189 0.321 0.338 0.408 0.429 0.489 0.515 0.498 0.524
50 0.211 0.411 0.433 0.508 0.535 0.613 0.645 0.647 0.681
70 0.241 - - 0.613 0.645 0.707 0.744 - -
95 0.284 - - 0.795 0.811 0.908 0.927 - -
120 0.339 - - 0.866 0.884 1.024 1.045 - -
150 0.388 - - 1.070 1.092 1.289 1.315 - -
185 0.450 - - 1.310 1.337 1.499 1.530 - -
225 0.521 - - 1.586 1.618 1.840 1.878 - -
240 0.534 - - 1.649 1.683 1.990 2.031 - -
300 0.653 - - 2.007 2.048 2.361 2.409 - -
400 0.770 - - 2.437 2.487 2.616 2.669 - -
500 0.936 - - 3.117 3.181 3.687 3.762 - -
625 1.175 - - - - - - - -
800 1.433 - - - - - - - -
1000 1.642 - - - - - - - -

M AHARASHTRA STATE E LECTRICITY DISTRIBUTION COMPANY LTD. P AGE 16 OF 39

M AHAVITARAN INFRASTRUCTURE P LAN SECTION 8: PRICE V ARIATION FORMULAE

ANNEXURE - III

VARIATION FACTOR FOR COPPER (CuF)

(For PVC Insulated copper control cable)

Note : This is for application in material price variation clause for insulated cables
Ref: IEEMA/PVC/AL-CU-CABLE/2001, Effective from: 1st January, 2001

No. of Core Core size 1.5 sq.mm. Core size 2.5 sq.mm.

2 0.026 0.047
3 0.039 0.070
4 0.052 0.094
5 0.065 0.117
6 0.078 0.141
7 0.091 0.164
10 0.130 0.235
12 0.157 0.282
14 0.183 0.329
16 0.209 0.376
19 0.248 0.446
24 0.313 0.563
27 0.352 0.634
30 0.391 0.704
37 0.483 0.869
44 0.573 1.033
52 0.678 1.221
61 0.796 1.432

M AHARASHTRA STATE E LECTRICITY DISTRIBUTION COMPANY LTD. P AGE 17 OF 39

M AHAVITARAN INFRASTRUCTURE P LAN SECTION 8: PRICE V ARIATION FORMULAE

ANNEXURE -IV

VARIATION FACTORS FOR PVC COMPOUND (CCFCu)

( For PVC Insulated Copper Control Cable)

Note: This is for application in material price variation clause for insulated cables.
Ref: IEEMA/PVC/AL-CU-CABLE/2001, Effective from:1st January, 2001

No. of 1.5 sq.mm 2.5 sq.mm.

Core Unarmored Armoured Unarmored Armoured
2 0.118 0.121 0.125 0.139
3 0.121 0.131 0.141 0.157
4 0.137 0.152 0.161 0.179
5 0.157 0.174 0.187 0.206
6 0.179 0.199 0.234 0.260
7 0.179 0.199 0.234 0.260
10 0.236 0.262 0.303 0.337
12 0.249 0.277 0.334 0.371
14 0.311 0.327 0.389 0.409
16 0.344 0.362 0.435 0.458
19 0.375 0.395 0.476 0.501
24 0.457 0.481 0.584 0.615
27 0.491 0.517 0.631 0.664
30 0.529 0.557 0.706 0.743
37 0.615 0.647 0.835 0.879
44 0.739 0.778 1.019 1.026
52 0.845 0.889 1.100 1.158
61 0.952 1.002 1.246 1.312

M AHARASHTRA STATE E LECTRICITY DISTRIBUTION COMPANY LTD. P AGE 18 OF 39

M AHAVITARAN INFRASTRUCTURE P LAN SECTION 8: PRICE V ARIATION FORMULAE

ANNEXURE - V
VARIATION FACTOR FOR STEEL (FeF)
(For Steel Armoured PVC Insulated Copper control cable)

Note: This is for application in material price adjustment clause for Steel Armoured PVC
Copper control cables

Ref: IEEMA/PVC/AL-CU-CABLE/2001, Effective from:1st January,2001

No. of Size
Cores 1.5 sq.mm. 2.5 sq.mm.
02 0.243 0.277
03 0.257 0.289
04 0.277 0.314
05 0.303 0.342
06 0.329 0.379
07 0.329 0.379
10 0.408 0.325
12 0.289 0.342
14 0.306 0.360
16 0.317 0.372
19 0.343 0.397
24 0.398 0.475
27 0.414 0.478
30 0.425 0.503
37 0.461 0.548
44 0.507 0.601
52 0.556 0.641
61 0.585 0.685

Note: 1) For 1.5 sq.mm. - Round wire is considered up to 10 core and strip is considered
from 12 core and above

2) For 2.5 sq.mm. - Round wire is considered up to 7 core and strip is considered
from 10 core and above

SIGNATURE OF THE TENDERER

M AHARASHTRA STATE E LECTRICITY DISTRIBUTION COMPANY LTD. P AGE 19 OF 39

M AHAVITARAN INFRASTRUCTURE P LAN SECTION 8: PRICE V ARIATION FORMULAE

PRICE VARIATION FORMULA

FOR RSJ

PRICE VARIATION:

1.0 The quoted price shall be based on M/s. SAIL’s per MT ex-works (Plant) rates exclusive of
any taxes and duties of the following sizes of billets/blooms/slabs conforming to IS 2830
prevailing on the first day of the month one month previous to the month in which the tender is
due for opening.

i) 100 mm to 125 mm Billets for 125 x 70 mm R.S. Joists

ii) 150 mm to 160 mm Blooms for 116 x 100 mm R.S. Joists

iii) 161 mm to 250 mm Blooms for 175 x 85 mm R.S. Joists

iv) 320 mm to 1500 mm S labs for 152 x152 mm R.S. Joists

2.0 In case of variation in the prices of above sizes of Billets, Blooms and slabs during the
currency of the contract, the quoted price shall stand increased or decreased as under:

For every one rupee increase or decrease per M.T., base price of above sizes of
Billets, Blooms and Slabs, the quoted price shall stand increased to Rs.1.10 per M.T.
or decreased to Rs.0.90 per M.T. depending on increase or decrease in the basic
price of Billets, Blooms and Slabs.

3.0 For the purpose of computing price variation as above, the following will be considered.

The date of delivery shall be the date on which the equipment/material is notified as
being ready for inspection /dispatch or the contracted delivery date whichever is
earlier whenever supplies are effected within contractual delivery period. In case the
supplies are effected after the contractual delivery period, the date of delivery for
price variation purpose would be the one out of the above two on which the price
variation is less.

4.0 The price of raw material as on the first day of the month one month prior to the “Date of
Delivery” shall apply for payment of price variation.

SIGNATURE OF THE TENDERER

M AHARASHTRA STATE E LECTRICITY DISTRIBUTION COMPANY LTD. P AGE 20 OF 39

M AHAVITARAN INFRASTRUCTURE P LAN SECTION 8: PRICE V ARIATION FORMULAE

st
Effective from :1 Jan.2002.

PRICE VARIATION CLAUSE FOR SWITCHGEAR AND CONTROLGEAR

The price quoted/confirmed is based on the cost of raw materials / components and Labor cost
as on the date of quotation and the same is deemed to be related to prices of raw materials /
components and all India average consumer price index number for Industrial workers as
specified in the price variation clause given below. In case of any variation in these prices and
Index number, the price payable shall be subject to adjustment up or down in accordance with the
following formula:

Po IS C AL In W
P= --- 25 + 17 ---- + 18 ---- + 10 ----- + 13 ---- + 17 ----
100 Iso Co ALo Ino Wo

Wherein

P = Price payable as adjusted in accordance with above formula.

Po = Price quoted / confirmed.
Iso = Wholesale price index of ‘Iron and Steel’ (base :1993
- 94=100) (refer notes)

This index is as applicable on the first week ending Saturday of the month, Three
months prior to the date of opening of tender.

This price is as applicable on the first working day of the month, Three month prior
to the date of opening of tender.

Co = Price of electrolytic copper wire bars (refer notes)

This price is as applicable on the first working day of the month, one month prior to
the date of opening of tender.

ALo = Price of busbar grade aluminium (refer notes)

This price is as applicable on the first working day of the month, one month prior to
the date of opening of tender.

Ino = Price of phenolic moulding powder for switchgear and controlgear of medium /
lower voltage (up to 650 volts) or price of epoxy resin for HT switchgear (above
650 volts) (refer notes).

This price is as applicable on the first working day of the month, one month prior to
the date of opening of tender.

Wo = All India average consumer price index number for industrial workers as published
by the Labor Bureau, Ministry of Labor, Govt. of India (Base 1982= 100).

This index number is as applicable for the month, Four months prior to the date of
opening of tender.

For example, if the date of opening of tender falls in May 2007, the applicable prices of electrolytic
copper wire bars (Co), busbar grade Aluminium (ALo) and insulating material (Ino) should be for the
month of April 2007 and wholesale Price Index of ‘Iron & Steel’ (Iso) should be for the first week
ending Saturday of February 2007 and all India average consumer price index number (Wo) should
be for the month of January 2007.

The above prices and indices are as published by IEEMA prevailing as on First working day of the
month i.e. One month prior to the date of opening of tender.

M AHARASHTRA STATE E LECTRICITY DISTRIBUTION COMPANY LTD. P AGE 21 OF 39

M AHAVITARAN INFRASTRUCTURE P LAN SECTION 8: PRICE V ARIATION FORMULAE

IS = The price of constructional steel (refer notes)

Wholesale price index of ‘Iron and Steel’ (base: 1993
- 94=100) (refer notes)

This index is as applicable on the first week ending Saturday of the month, Four
months prior to the date of opening of tender.

C = Price of electrolytic copper wire bars (refer notes)

This price is as applicable on the first working day of the month, Two months
prior to the date of delivery.

AL = Price of busbar grade aluminium (refer notes)

This price is as applicable on the first working day of the month, Two months prior to
the date of delivery.

In = Price of phenolic moulding powder for switchgear and controlgear of

medium/lower voltage (up to 650 volts) or price of epoxy resin for HT
switchgear (above 650 volts) (refer notes).

This price is as applicable on the first working day of the month, Two months prior to
the date of delivery.

W = All India average consumer price Index number for Industrial workers, as
published by the Labor Bureau, Ministry of Labor , Govt. of India (Base 1982-
100).

This index numbers as applicable for the month, Five months prior to the date of
delivery.

For example, if the date of delivery in terms of clause given below falls in December 2006.

The applicable price of raw materials viz. C, AL and In should be for the month of Oct. 2006 and
wholesale price index of ‘Iron and Steel’ (IS) should for the first week ending Saturday of August 200
6
and all India Average Consumer Price Index number (W) should be for the month of July 2006.

The “date of delivery” shall be the date on which the switchgear equipment is notified as being ready
for inspection/dispatch or the contracted delivery date, whichever shall be the earlier whenever
supplies are effected within contractual delivery period. In case supplies are effected after contractual
delivery period, the date of delivery for P.V. purpose would be the one out of the two on which price
variation is less.

Notes: (a) All prices of raw materials are exclusive of modvatable excise /CV duty amount and
exclusive of any other Central, State or local taxes, octroi etc.

(b) All prices are as on first working day of the month.

(c) The details of prices are as under :

1. The wholesale price index number for ‘Iron and Steel’ is as published by the Office of
the Economic Advisor, Ministry of Industry, Govt. of India, New Delhi, with base 1993-
94=100. This wholesale price index is being published weekly on provisional basis.
However, the same gets finalized after eight weeks and is normally available after two
months. Therefore, we are considering in our calculation this final index published by
Economic Advisor for the first Saturday of the month two months prior to the date of
which the prices of other raw materials such as C, AL and In are published for the
corresponding month.

M AHARASHTRA STATE E LECTRICITY DISTRIBUTION COMPANY LTD. P AGE 22 OF 39

M AHAVITARAN INFRASTRUCTURE P LAN SECTION 8: PRICE V ARIATION FORMULAE

2. The price for electrolytic copper wire bars (in Rs. /MT) is ex-godown price as quoted by
the primary producer of copper.

3. The price of bus-bar grade Aluminium (in Rs. /MT) is the average of ex-works price as
quoted by the two primary producers for the bus-bar size 152.4 x 6.35 mm flat
approximately of grade equivalent to E91E as per IS 5082-1981 (or the latest).

4. The price of insulating material (in Rs. / Kg.) is the average price of phenolic moulding
powder quoted by three manufacturers (for switchgear and controlgear of medium /
lower voltage up to 650 volts) or is the price of epoxy resin quoted by a resin
manufacturer for their grade CT 5900 or its nearest equivalent (for HT switchgear
above 650 volts).

S IGNATURE OF TENDERER

M AHARASHTRA STATE E LECTRICITY DISTRIBUTION COMPANY LTD. P AGE 23 OF 39

M AHAVITARAN INFRASTRUCTURE P LAN SECTION 8: PRICE V ARIATION FORMULAE

st
Effective From 1 April 2003

PRICE VARIATION CLAUSE FOR INSULATORS

The price quoted/confirmed is based on the cost of raw material and labor cost as on the date of
quotation and the same is deemed to be related to prices of zinc, index number for insulators and All
India average consumer price index number for industrial workers as specified in the price variation
clause given below. In case of any variation in these index numbers, the price payable shall be
subject to adjustment up or down in accordance with the following formula:

Po Zn IN-INSLR W
P = ----- 15 + 5 ---- + 53 --------------- + 27 ----
100 Zno INo-INSLR Wo

Wherein.

P = Price payable as adjusted in accordance with the above formula.

Po = Price quoted/confirmed.

Zno = Price of electrolytic high grade zinc (refer notes)

This price is as applicable on the first working day of the month, one month
prior to the date of tender opening.

INo-INSLR = Index number for Insulators based on relative prices and weightages (as given in
brackets) of wholesale price index number for Fuel, Power, Light and Lubricants
(28). Wholesale price index number for Basic Metals, Alloys and Metal Products (15).
Wholesale price index number for Wood and Wood Products (6) and Ball Clay (4)
st
calculated considering their values as on 1 January 2003 as base equal to 100.
(refer notes)

This index number is as applicable on the first working day of the month, One month
prior to the date of opening of tender.

Wo = All India average consumer price index number for Industrial workers, as published
by the Labor Bureau, Ministry of Labor, Govt. of India (Base 1982= 100).

This index number is as applicable for the month, three months prior to the date of
opening of tender.

For example, if the date of tender falls in May 2003, price of zinc and the applicable index number for
st
insulators (Ino- INSLR) should be that prevailing as on 1 April 2003 and the applicable all India
average consumer price index number (Wo) should be for the month of February 2003.

The above indices are as published by IEEMA vide IEEMA Circular reference number IEEMA
(PVC)INSLR/---/ _____ prevailing as on first working day of the month, i.e. one month prior to the date
of tender opening.

Zn = Price of electrolytic high grade zinc (refer notes)

This price is as applicable on the first working day of the month, two months
prior to the date delivery.

IN-INSLR = Index number for Insulators based on relative prices and weightages (as given in
brackets) of wholesale price index number for Fuel, Power, Light and Lubricants
(28) Wholesale price index number for Basic Metals, Alloys and Metal Products (15),
Wholesale price index number for Wood and Wood Products (6) and Ball Clay (4)

M AHARASHTRA STATE E LECTRICITY DISTRIBUTION COMPANY LTD. P AGE 24 OF 39

M AHAVITARAN INFRASTRUCTURE P LAN SECTION 8: PRICE V ARIATION FORMULAE

st
calculated considering their values as on 1 January 2003 as base equal to 100
(refer notes)

This index number is as applicable on the first working day of the month, Two months
prior to the date of delivery.

W = All India average consumer price index number for Industrial workers, as published
by the Labor Bureau, Ministry of Labor, Govt. of India (Base 1982= 100).

This index number is as applicable for the month, four months prior to the date of
delivery.

For example, if the date of delivery in terms of clause given below falls in December 2003, price of
zinc and the applicable index number for insulators (In-INSLR) should be that as published by IEEMA
st
as prevailing as on 1 October 2003 and the applicable all India average consumer price index
number (W) should be for the month of August 2003.

The date of delivery shall be the date on which the equipment / material is notified as being ready for
inspection / dispatch or the contracted delivery date whichever is earlier whenever supplies are
effected within contractual delivery period. In case supplies are effected after the contractual delivery
period, the date of delivery for P.V. purpose would be the one out of the above two on which the price
variation is less.

NOTES: (a) All prices of raw materials considered for arriving at the index number for Insulators
are exclusive of modvatable excise duty and exclusive of any other Central, State or
local taxes, octroi etc. as under :
st
(b) All prices are as on 1 working day of the calendar month.

(c) The details of the prices considered are as under:

1. The Price for electrolytic high grade zinc (in Rs./MT) is the ex-works price as
quoted by the primary producer of zinc.

2. The price of ball clay (in Rs./Kg.) is the average of ‘N-1’ type ball clay as
quoted by the two manufacturers.

3. The wholesale price index number for ‘Fuel, Power, Light & Lubricants,
Basic, Metals, Alloys and Metal Products’ and Wood & Wood Products are as
published by the Office of Economic Adviser, Ministry of Industry, Govt. of
India, New Delhi with base 1993-94=100. These wholesale price indices are
being published weekly on provisional basis. However, the same gets
finalized after eight weeks and is normally available after 2 months.
Therefore, we are considering in our calculations these final indices
published by Economic Adviser for the first Saturday of the months, two
months prior to the date of which the prices of Ball Clay and Zinc is
considered.

For example, for calculating index number for insulators on first day of the month of October, the basic
prices of zinc and ball clay are to be considered as on first working day of October and the wholesale
price indices for ‘Fuel Power, Light and Lubricants’, ‘Basic Metals, Alloys and Metal products’ and
‘Wood and Wood Products’ are to be considered as publi shed by Economic Advisor for the first week
ending Saturday of the month of August.

SIGNATURE OF THE TENDERER

M AHARASHTRA STATE E LECTRICITY DISTRIBUTION COMPANY LTD. P AGE 25 OF 39

M AHAVITARAN INFRASTRUCTURE P LAN SECTION 8: PRICE V ARIATION FORMULAE

st
Effective from 1 January 2002

PRICE VARIATION CLAUSE FOR ISOLATOR M ETALLICS

(IEEMA PRICE VARIATION CLAUSE FOR SWITCHGEAR AND CONTROLGEAR)

The price quoted / confirmed is based on the input cost of raw materials/components and labor cost
as on the date of quotation and the same is deemed to be related to the related to the prices of raw
materials and all India average consumer price index number for industrial workers as specified
below. In case of any variation in these rates and index number, the prices shall be prices shall be
subject to adjustment up or down in accordance with the following formula-

Po IS C Al In W
P= ----- 25 + 17 ---- + 18 ----- + 10 ---- + 13 ----- + 17 ----
100 ISo Co Alo Ino Wo

Wherein,

P = Ex-works price payable as adjusted in accordance with the above formula.

Po = Ex-works Price quoted/confirmed.

ISo = Wholesale price index of ‘Iron and Steel’ (base 1993

- 94=100) (refer notes)

This index is as applicable on the first week ending Saturday of the month, Three months
prior to the date of opening of tender.

Co = Price of electrolytic copper wire Bars. (refer notes)

This price as applicable on the First Working day of the month, one month prior to the
date of opening of tender.

Alo = Price of busbar grade Aluminium (refer notes)

This price is as applicable on the first working day of the month, One month prior to the
date of opening of tender.

Ino = Price of Phenolic moulding powder for Switchgear & Controlgear of medium/ lower
voltage i.e. up to 650 volts or price of epoxy resin for H.T. switchgear (above 650 volts)
(refer notes)

This price as applicable on the First Working day of the month, one month prior to the
date of opening of tender

Wo = All India average consumer price index number for Industrial workers, as published by the
Labor Bureau, Ministry of Labor, Govt. of India (Base 1982 = 100).

This index number is as applicable for the month, four months prior to the date of opening
of tender.

For example, if the date of tendering falls in May 2001 the applicable price of electrolytic copper wire
st
bars (Co) busbar grade Aluminium (Alo) and insulating material (Ino) should be for the month of 1
April 2001 and wholesale price index of ‘Iron and Steel’ (ISo) should be for the first week ending
Saturday of February, 2001 and all India average consumer price index number (Wo) should be for
the month of January 2001.

M AHARASHTRA STATE E LECTRICITY DISTRIBUTION COMPANY LTD. P AGE 26 OF 39

M AHAVITARAN INFRASTRUCTURE P LAN SECTION 8: PRICE V ARIATION FORMULAE

The above prices and indices are as published by IEEMA vide Circular reference No. IEEMA(PVC)
SWGR/ / prevailing as on first working day of the month one month prior to the date of opening of the
tender.

IS = Wholesale price index of ‘Iron and Steel’ (base 1993

- 94=100) (refer notes)

This index is as applicable on the first week ending Saturday of the month, four months
prior to the date of delivery.

C = Price of electrolytic copper wire bars (refer notes)

This price is as applicable on the first working day of the month, two months prior to the
date of delivery.

Al = Price of busbar grade aluminium (refer notes)

This price is as applicable on the first working day of the month, two months prior to the
date of delivery.

In = Price of Phenolic moulding powder for Switchgear & Controlgear of medium/lower voltage
i.e. up to 650 volts or price of epoxy resin for H.T. switchgear (above 650 volts) (refer
notes)

This price is as applicable on the first working day of the month, two months prior to the
date of delivery.

W = All India average consumer price index number for Industrial workers, as published by the
Labor Bureau, Ministry of Labor, Govt. of India (Base 1982 = 100).

This index number is as applicable for the month, five months prior to the date of delivery.

For example, if the date of delivery in terms of clause given below falls in December 2001, the
applicable price of raw materials viz. C, Al and In should be for the month of Oct.2001 and Wholesale
Price Index of ‘Iron and Steel’ (IS) should be for the first week ending Saturday of August, 2001 All
India Average Consumer Price index number (W) should be for the month of July 2001.

THE DATE OF DELIVERY

“The date of delivery” shall be the date on which the switchgear equipment/material is notified as
being ready for inspection/dispatch or the contractual delivery date whichever is earlier whenever
supplies are effected within contractual delivery period. In case the supplies are effected after the
contractual delivery period, the date of delivery for price variation purpose would be the one out of the
above two on which the price variation is less”.

NOTES: (a) All prices of raw materials are exclusive of modvatable excise/ CV duty
amount and exclusive of any other Central, State or local taxes, octroi etc.
st
(b) All prices are as on 1 working day of the month.

(c) The details of the prices are as under:

1. The wholesale price index number for Iron and Steel is as published by the Office
of Economic Adviser, Ministry of Industry, Govt. of India, New Delhi with base
1993-94=100. This wholesale price index is being published weekly on
provisional basis. However, the same gets finalized after eight weeks and is
normally available after 2 months. Therefore, we are considering in our
calculations this final index published by Economic Adviser for the first Saturday
on the month, two months prior to the date of which the price of other rate
materials such as C, Al and In are published for the corresponding month.

M AHARASHTRA STATE E LECTRICITY DISTRIBUTION COMPANY LTD. P AGE 27 OF 39

M AHAVITARAN INFRASTRUCTURE P LAN SECTION 8: PRICE V ARIATION FORMULAE

2. The Price for electrolytic copper wire bars (in Rs./MT) is the ex-godown price as
quoted by the primary producer of copper.

3. The price of bus-bar grade Aluminium (in Rs./MT) is the average of the ex-works
price as quoted by the two primary producers for the bus-bars size 152.4 x 6.35
mm flat approximately, of grade equivalent to E91E as per IS 5082-1981 (or the
latest).

4. The price of insulating material (in Rs./Kg.) is the average price of phenolic
moulding powder quoted by three manufacturers (for switchgear and controlgear
of medium /lower voltage up to 650 volts) or is the price of epoxy resin quoted by
a resin manufacturer for their grade CT 5900 or its nearest equivalent, (for HT
switchgear above 650 volts).

SIGNATURE OF THE TENDERER

M AHARASHTRA STATE E LECTRICITY DISTRIBUTION COMPANY LTD. P AGE 28 OF 39

M AHAVITARAN INFRASTRUCTURE P LAN SECTION 8: PRICE V ARIATION FORMULAE

st
Ref.IEEMA/PVC/BTR/2001 Effective From 1 Jan 2001

PRICE VARIATION CLAUSE FOR LEAD ACID BATTERIES

The price quoted/confirmed is based on the input cost of raw material and labor cost as on the date of
quotation and the same is deemed to be related to the price of lead ingot and all India average
consumer price index number for industrial workers as specified in the price variation clause given
below. In case of any variation in this price/index number, the price payable shall be subject to
adjustment up or down in accordance with the following formula:

Po LD W
P = ----- 40 + 30 ------ + 30 -----
100 LDo Wo

Wherein.

P = Price payable as adjusted in accordance with the above formula.

Po = Price quoted/confirmed.

LDo = Price of lead ingot (refer notes)

This price is as applicable on the first working day of the month, One month prior to the
date of opening of tender.

Wo = All India average consumer price index number for Industrial workers, as published by the
Labor Bureau, Ministry of Labor, Govt. of India (Base 1982 = 100).

This index number is as applicable for the month, four months prior to the date of opening
of tender.

For example, if the date of tendering falls in May 2001 the applicable price of lead ingot (LDo) should
st
be that prevailing as or 1 April 2001 and the applicable all India average consumer price index
number (Wo) should be for the month of January 2001.

The above prices/indices are as published by IEEMA vide IEEMA Circular prevailing as on first
working day of the month i.e. one month prior to the date of opening of the tender.

LD = Price of lead ingot (refer notes)

This price is as applicable on the first working day of the month, One month prior to the
date of delivery.

W = All India average consumer price index number for industrial workers (base
1982=100) as published by Labor Bureau, Ministry of Labor, Govt. of India.

This index number is as applicable for the month, four month prior to the date of delivery.

For example, if the date of delivery in terms of clause given below falls in December 2001, the
st
applicable price of lead ingot (LD) should be that as published by IEEMA as prevailing on 1
November 2001 and the applicable all India average consumer price index number (W) should be for
the month of August, 2001.

“The date of delivery” shall be the date on which the equipment/material is notified as being ready
for inspection/dispatch or the contractual delivery date whichever is earlier whenever supplies are
effected within contractual delivery period. In case the supplies are effected after the contractual

M AHARASHTRA STATE E LECTRICITY DISTRIBUTION COMPANY LTD. P AGE 29 OF 39

M AHAVITARAN INFRASTRUCTURE P LAN SECTION 8: PRICE V ARIATION FORMULAE

delivery period, the date of delivery for price variation purpose would be the one out of the above two
on which the price variation is less”.

Note: a) The price of lead ingot (in Rs./MT) is the ex-works price of 99.97% pure lead as quoted by a
primary producer and is exclusive of modvatable excise duty and of any other Central,
State or local taxes, octroi etc.

SIGNATURE OF THE TENDERER

M AHARASHTRA STATE E LECTRICITY DISTRIBUTION COMPANY LTD. P AGE 30 OF 39

M AHAVITARAN INFRASTRUCTURE P LAN SECTION 8: PRICE V ARIATION FORMULAE

st
Ref.IEEMA/PVC/BTR/CHRG/2001(R-1) Effective From 1 Jan 2002

PRICE VARIATION CLAUSE FOR BATTERY CHARGER EQUIPMENT

The price quoted/confirmed is based on the input cost of raw material and labor cost as on the date of
quotation and the same is deemed to be related to the index number for Battery Charger Equipment
and all India average consumer price index number for industrial workers as specified in the price
variation clause given below. In case of any variation in these index numbers, the price payable shall
be subject to adjustment up or down in accordance with the following formula:

Po IN-BTR-CHRG W
P= ----- 20 + 50 --------------------- + 30 ----
100 INo-BTR-CHRG Wo
Wherein.

P = Price payable as adjusted in accordance with the above formula.

Po = Price quoted/confirmed.

INo-BTR-CHRG = Index number for Battery Charger equipment based on relative prices and
weightages (as given in brackets) of C.C. Copper rods (30), electrical steel
laminations (10) and wholesale price index of iron and steel (10) Calculated
st
considering their prices as on 1 June, 2000 as base equal to 100 (refer notes).

This index number is as applicable on the first working day of the month, One
month prior to the date of opening of tender.

Wo = All India average consumer price index number for Industrial workers, as
published by the Labor Bureau, Ministry of Labor, Govt. of India
(Base 1982= 100)

This index number is as applicable for the month, four months prior to the date
of opening of tender.

For example, if the date of tender falls in May 2001 the applicable index number for Battery Charger
st
equipment (Ino-BTR-CHRG) should be that prevailing as or 1 April 2001 and the applicable all India
average consumer price index number (Wo) should be for the month of January 2001.

The above indices are as published by IEEMA vide IEEMA Circular prevailing as on first working day
of the month i.e. one month prior to the date of opening of the tender.

IN-BTR-CHRG = Index number for Battery Charger equipment based on relative prices and
weightages (as given in brackets) of C.C. Copper rods (30), electrical steel
laminations (10)and wholesale price index of Iron and Steel (10) calculated
st
considering their values as on 1 June, 2000 as base equal to 100 (refer notes).

This index number is as applicable on the first working day of the month, One
month prior to the date of delivery.

Wo = All India average consumer price index number for Industrial workers, (Base
1982 = 100) as published by the Labor Bureau, Ministry of Labor, Govt. of India

This index number is as applicable for the month, four months prior to the date of
delivery.

M AHARASHTRA STATE E LECTRICITY DISTRIBUTION COMPANY LTD. P AGE 31 OF 39

M AHAVITARAN INFRASTRUCTURE P LAN SECTION 8: PRICE V ARIATION FORMULAE

For example, if the date of delivery in terms of clause given below falls in December 2001, the
applicable index number for Battery Charger equipment (IN-BTR-CHRG) should be that as published
st
by IEEMA as prevailing on 1 November 2001 and the applicable all India average consumer price
index number (W) should be for the month of August 2001.

“The date of delivery” shall be the date on which the equipment/material is notified as being ready
for inspection/dispatch or the contractual delivery date whichever is earlier whenever supplies are
effected within contractual delivery period. In case the supplies are effected after the contractual
delivery period, the date of delivery for price variation purpose would be the one out of the above two
on which the price variation is less”.

NOTES: (a) All prices of raw materials considered for arriving at the index number for Battery
Charger equipment are exclusive of modvatable excise duty and exclusive of any
other Central, State or local taxes, octroi etc.
st
(b) All prices are as on 1 working day of the calendar month.

(c) The details of the prices considered for index number for Battery Charger equipments
are as under:

a. The (Price of C.C. copper rod (in Rs./MT) is the ex-works price of a primary
producer of copper.

b. The price of laminations (in Rs./Kg.) is the average of the ex-works price as
quoted by the two manufacturers for CRGO plain strip transformer lamination
with an area between 301 and 1000 Sq.Cm. produced from M4 Grade (41)
Steel, fully processed and stress relief annealed.

c. The wholesale price index number for Iron and Steel (in Rs./MT) is as published
by the Office of Economic Adviser, Ministry of Industry, Govt. of India, New
Delhi with base 1993-94=100. This wholesale price index is being published
weekly on provisional basis. However, the same gets finalized after eight weeks
and is normally available after 2 months. Therefore, we are considering in our
calculations this final index published by Economic Adviser for the first Saturday
of the months, two months prior to the date of which the price of other raw
materials are considered.

For example, for calculating index number for Battery Charger Equipment on first day of the month of
October, the basic prices of copper Rods, Electrical Steel Laminations are to be considered as on first
working day of October and the wholesale price index number for ‘Iron and Steel’ is to e b considered
as published by Economic Adviser for the first week ending Saturday of the month of August.

SIGNATURE OF THE TENDERER

M AHARASHTRA STATE E LECTRICITY DISTRIBUTION COMPANY LTD. P AGE 32 OF 39

M AHAVITARAN INFRASTRUCTURE P LAN SECTION 8: PRICE V ARIATION FORMULAE

PRICE VARIATION CLAUSE FOR AAC/AAAC/ACSR CONDUCTORS

The price quoted/confirmed is based on the cost of raw materials as on the date of tender opening. It
is deemed to be related to the prices of raw materials, as specified in the price variation clause given
below. In case of any variation in these rates, the prices payable shall be subject to adjustment up or
down in accordance with the following formula:

Formula (A): For All Aluminium Conductors (AA Conductor)

P = Po + ALF (AL – ALo)

Formula (B): For All Aluminium Alloy Conductors (AAA Conductor)

P = Po + ALF (ALy – ALyo)

Formula (C): For ACSR Conductors

P = Po + ALF (AL – ALo) + FeF (Fe – Feo)

Where,

P = Ex.-Works Price payable in Rs. Per Km. as adjusted in accordance with the price
variation clause.

Po = Ex-Works price quoted / confirmed in Rs. Per Km.

ALF = Variation factor for Aluminium as indicated below: (Variation factor is to be selected
depending upon the type and size of conductors)

ALo = Price of E.C grade Aluminium Rods (Properzi rods) conforming to Specification IS:
5484 – 1978 in Rs. Per MT

ALyo = Price of Aluminium Alloy Rods in Rs. Per MT.

FeF = Variation factor for steel core wires as indicated below (Variation factor is to b e
selected depending upon the type and size of ACSR Conductors)

Feo = Price of High Tensile Galvanized Steel Wire (Price is to be selected depending upon
the size of the High Tensile Galvanized Steel Wire used in the ACSR Conductor) in
Rs. per MT.

The above prices for raw materials viz. ALo. Alyo and Feo are those as published by IEEMA for
Conductors prevailing for the Calendar month, ONE month prior to the date of tender opening e.g. if
tender is opened in May 2001, the applicable prices would be those, prevailing for the month of April
2001.

AL = Price of EC grade Aluminium

Rods (Properzi Rods) confirming to
specification IS : 5484 /1978 in Rs./MT.
These Prices are as applicable
ALy = Price of Aluminium Alloy Rod in Rs. for the month, one month prior
Per MT to the date of delivery.

Fe = Price of high Tensile Galvanized Steel

Wire in Rs. Per MT

Example:- If the date of delivery in terms of clause given below falls in December 2001, the applicable
raw material prices should be as published by IEEMA, for Conductors prevailing for the month of
November 2001.

M AHARASHTRA STATE E LECTRICITY DISTRIBUTION COMPANY LTD. P AGE 33 OF 39

M AHAVITARAN INFRASTRUCTURE P LAN SECTION 8: PRICE V ARIATION FORMULAE

The date of delivery for the purpose of price variation shall be the date on which the material is
notified as being ready for inspection / dispatch or the contracted delivery date whichever is earlier
whenever supplies are effected within contractual delivery period. In case the supplies are effected
after the contractual delivery period, the date of delivery for P.V. purpose would be the one out of the
above two on which price variation is less.

Notes: a) All prices of raw materials are prevailing average prices for the month.

b) All prices of raw materials are Ex-works exclusive of excise duty, sales taxes etc.

M AHARASHTRA STATE E LECTRICITY DISTRIBUTION COMPANY LTD. P AGE 34 OF 39

M AHAVITARAN INFRASTRUCTURE P LAN SECTION 8: PRICE V ARIATION FORMULAE

ANNEXURE - I
VARIATION FACTOR FOR ALUMINIUM & STEEL CORE WIRE

Description of Type & size of Conductor ALF

I. AAC Conductor. (All Aluminium Conductor)
1. AAC GNAT 0.074
7/2.21 mm
2. AAC ANT 0.145
7/3.10 mm
II. AAA Conductors (All Aluminium Alloy Conductors)
1. 22 sq. mm 0.06016
7/2.0 mm
2. 34 sq. mm 0.0940
7/2.50 mm
3. 55 sq. mm 0.1492
7/3.15 mm
4. 80 sq. mm 0.21826
7/3.81 mm
5. 100 sq. mm 0.27286
7/4.26 mm
6. 148 sq. mm 0.40691
19/3.15 mm
7. 232 Sq.mm 0.63667
19/3.94 mm
8. 525 sq. mm 1.44839
61/3.31 mm
9. 560 sq. mm 1.791
61/3.66 mm
10. 80 sq. mm 0.2481
19/2.46 mm
(Normally used as earth wire)

Description of Type & Size of Conductor ALF FeF

III. ASCR Conductors (Aluminium Conductor Steel Reinforced)
1. ACSR Weasel 0.0866 0.0411
6/1/2.59 mm
2. ACSR Rabbit 0.1448 0.0688
6/1/3.35 mm
3. ACSR Raccoon 0.2159 0.1025
6/1/4.09
4. ACSR Dog 0.28746 0.10571
Alum - 6/4.72 mm
Steel - 7/1.57 mm
5. ACSR Panther 0.5874 0.3866
Alum - 30/3.00 mm
Steel - 7/3.00 mm
6. 0.4 ACSR Zebra 1.184 0.433
Alum - 54/3.18 mm
Steel - 7/3.18 mm
7. ACSR Moose 1.464 0.540
Alum - 54/3.53 mm
Steel - 7/3.53 mm

SIGNATURE OF THE TENDERER

M AHARASHTRA STATE E LECTRICITY DISTRIBUTION COMPANY LTD. P AGE 35 OF 39

M AHAVITARAN INFRASTRUCTURE P LAN SECTION 8: PRICE V ARIATION FORMULAE

st
IEEMA/PVC/PWR-CAP/2001 Effective from : 1 Jan. 2001.

PRICE VARIATION CLAUSE FOR POWER CAPACITORS

The price quoted/confirmed is based on the input cost of raw materials/components and labor
cost as on the date of tender opening and the same is deemed to be related to prices of raw
materials, index number for capacitor and all India average consumer price index number for
industrial workers as specified in the price variation clause given below. In case of any
variation in these prices and index numbers, the price payable shall be subject to adjustment,
up or down in accordance with the following formula:

Po IN-CAP-PWR W
P = ------ 25 + 67 ---------------------- + 8 ------
100 INo-CAP-PWR Wo

Wherein,

P = Ex works price payable as adjusted in accordance with the above formula.

Po = Ex works price quoted/confirmed.

INo-CAP-PWR = Index Number for Power Capacitors based on relative prices and
weightages (as given in brackets) of non-PCB condenser oil (18) and
relevant wholesale price index numbers of aluminium foil (12) and BOPP
f i l m ( 3 7 ) ( c a l c u l a ted considering their prices and corresponding
st
applicable wholesale price index numbers as on 1 June 2000 as base =
100 (refer note). This index number is as applicable on the first working
day of the month, One month prior to the date of tender opening.

Wo = All India average consumer price index number for industrial workers, as
published by the Labor Bureau, Ministry of Labor, Govt. of India (Base
1982 = 100). This index number is as applicable for the month, three
months prior to the date of tender opening.

For example, if the date of tender opening falls in May 2001, the applicable
st
index number for power capacitors (INo-CAP-PWR) should be as on 1
April 2001, and all India average consumer price index number (Wo)
should be for the month of February 2001.

The above index numbers are as published by IEEMA vide circular

reference number IEEMA(PVC)/PWR-CAP/-/ , - prevailing as on first
working day of the month, one month prior to the date of tender opening.
IN-CAP-P W R = I n d e x N u m b e r f o r Power Capacitors based on relative prices and
weightages (as given in brackets) of non-PCB condenser oil (18) and
relevant wholesale price index numbers of aluminium foil (12) and BOPP
film (37) (calculated considering their prices and corresponding
st
applicable wholesale price index numbers as on 1 June 2000 as base =
100 (refer note). This index number is as applicable on the first working
day of the month, two months prior to the date of delivery.

W = All India average consumer price index number for industrial workers, as
published by the Labor Bureau, Ministry of Labor, Govt. of India (Base

M AHARASHTRA STATE E LECTRICITY DISTRIBUTION COMPANY LTD. P AGE 36 OF 39

M AHAVITARAN INFRASTRUCTURE P LAN SECTION 8: PRICE V ARIATION FORMULAE

1982 = 100).This index number is as applicable for the month, four

months prior to the date of delivery.

For example, if the date of delivery falls in December 2001, the applicable
st
index number for power capacitors (IN-CAP-PWR) should be as on 1
October 2001; and all India average consumer price index number (W)
should be for the month of August 2001.

The “date of delivery” is the date on which the capacitor is notified as being ready for
inspection/dispatch or the contracted delivery date, whichever is earlier, wherever supplies
are effected within Contractual Delivery Period. In case supplies are effected after the
contractual delivery period, the date of delivery for P.V. purpose would be the one out of the
above two on which the price variation is less.

NOTES : a] The prices of non-PCB condensor oil (in Rs/MT) is the CIF Mumbai price as
quoted by an overseas manufacturer in foreign currency, converted into
Indian Rupees taking into consideration the exchange rate prevailing as on
st
1 working day of the month. This price is inclusive of customs duty
st
applicable as on 1 working day of the month but exclusive of modvatable
countervailing duty and exclusive of any other central, state or local taxes,
octroi, etc.
b] The wholesale price index number of “Aluminium foil” and of “BOPP film” are
as published by the Office of the Economic Adviser, Ministry of industry,
Govt. of India in their weekly bulletin “Index Number of Wholesale Prices in
India” base 1993-94 = 100. These wholesale price index numbers are being
published weekly, on provisional basis. However the same gets finalized
after 8 weeks and is normally available after two months. (Therefore we are
considering in our calculations of index number for capacitor only these final
st
index numbers published by the Economic Adviser for the 1 Saturday of the
month two months prior to the date for which the price of non-PCB condensor
oil is considered for the corresponding month).

SIGNATURE OF THE TENDERER

M AHARASHTRA STATE E LECTRICITY DISTRIBUTION COMPANY LTD. P AGE 37 OF 39

M AHAVITARAN INFRASTRUCTURE P LAN SECTION 8: PRICE V ARIATION FORMULAE

PRICE VARIATION FORMULAE FOR PSC POLES

(1) Adjustment Formula: The amount to be added to or deducted from the Interim Payment
Certificates for changes in cost shall be determined from the following formula:

Pn = a + b Ln + c Mn + d En + etc
Lo Mo Eo
Where:

“P n ” is the adjustment factor to be applied to the estimated value of the work carried out in
month “n”;
“a ” is a fixed coefficient, specified in Table 2, representing the non-adjustment portion in
contractual payments;
“b”, “c”, “d”, etc., are coefficients representing the estimated proportion of each cost element
(labor (L), materials (M), equipment operation (E), etc.) in the works, as specified in Table 2;
“Ln”, “M n ”, “En”, etc., are the current cost indices or reference prices for month “n”,
determined in the relevant currency of payment, applicable to each cost element on the date
forty nine (49) days prior to the last day of the period to which the particular Interim Payment
Certificate is related;
“Lo”, “M o ”, “Eo”, etc., are the base cost indices or reference prices corresponding to the
above cost elements, in the relevant currency of payment, on the Base Date.

(2) Base, Current and Provisional Indices: The cost indices or reference prices specified in the
following Table 1 – Price Adjustment Indices shall be used. If at any time a current index (for
the date forty nine (49) days prior to the last date of the period to which the particular Interim
Payment Certificate is related) is unavailable, a provisional index as determined by the
Employer’s Representative shall be used, subject to subsequent correction of the amounts
certified when the current index is available.
(3) Weighting and Adjustment Factors: The weightings (coefficients) for each of the factors of cost
shall be as specified in the following Table 2 – Price Adjustment Factors.

Table 1: Price Adjustment Indices

Adjustments for Changes in Cost and Index Price Adjustment Factors as Provided Below
Legislation – Price Adjustment
Factors

Cost Index for Labor L All India average consumer price index number
for industrial workers, as published by the Labor
Bureau, Ministry of Labor, Govt. of India (Base
1982 = 100)
Cost Index for Materials, other than MA The average wholesale price index for all commodities
steel for the month in which the adjustment date falls, as
published by the Reserve Bank of India for India (Base:
1993-94 = 100)
Cost Index for Materials - Steel MS The average wholesale price index for iron and steel for
the month in which the adjustment date falls, as
published by the Reserve Bank of India for India (Base:
1993-94 = 100)
Cost Index for Equipment Operation E The average wholesale price index for fuel, power, light
(fuel and lubricants) and lubricants for the month in which the adjustment
date falls, as published by the Reserve Bank of India for
India (Base: 1993-94 = 100)

M AHARASHTRA STATE E LECTRICITY DISTRIBUTION COMPANY LTD. P AGE 38 OF 39

M AHAVITARAN INFRASTRUCTURE P LAN SECTION 8: PRICE V ARIATION FORMULAE

Table 2: Price Adjustment Factors

Adjustment Factors to be used in the Adjustment Formula:

c
b d
Coefficients: a (Materials Portion)
(Labor (Equipment
(Non- Portion) Operation
Other
adjustable Steel
Materials Portion)
Portion)
(L) (MS) (MA)
(E)
Supply & Installation of PSC Poles

PSC Poles 20% 20% 20% 30% 10%

SIGNATURE OF THE TENDERER

M AHARASHTRA STATE E LECTRICITY DISTRIBUTION COMPANY LTD. P AGE 39 OF 39