GOVERNMENT OF INDIA/ HIRA HRGIN

Central Registry/ E. Rly

MINISTRY OF
RAILWAYS/T AATAT Date of Receipt
(RAILWAY BOARD/ Trd ais
Serial No...

No.2017/TK-II/22/1/1 New Delhi, dated 27.11.2017

incipal Chief Engineer,
CAO/Construction,
All ZonalRailways. All Zonal Railways.

Sub: Price variation formula for various track

fittings.
Ref Report of the four inember cOinmittee
regarding PVC clause for l'.ay
fittings.
1.0 Board (ME & FC) had nominated a four member
commiltee constslig o
PCE/NR, PCE/CR, PCE/SCR & FA&CAO/C/1/NR to device price variation tormua
for following track items:

(i) ERC
(ii) Different types of Metal Liners, Fish Plates/Bolts/Plate screws.
(ii) Different types of Switches, CMS Crossings/Glued Joints SEJ/mproved
SEJ and Derailing Switches.
(iv) Different types of GRSP.
(V) Ditferent types of GFN liner

2.0 The recommendations of the Committee has been examined in Railway Board
in consultation with tinance directorate and the recommended price variation formulae
for various P.ay items components has been approved by Board (ME), as detaiied in
Annexure A (enclosed).

3.0 Aforesaid PVC forinula is not lo be treated as mandatory, and should be luken
guidance for prospective tenders while following the instructions issued by F(S) De
vide letter No.2011/FS-ILMise./4/PVC dated 23-08-2011.
4.0 GST input tax credit shall be passed on to Indian Railways by the supplier. In
terms of RB L..No. 2008/RS(G)/777/l dated 21.07.2017, any additional Input fa
Credit(ITC) benefit, if becomes available to supplicr, the same shall be passed on to
purchaser without any undue delay. Itis presumed that the unit rate/base price (PO) Is
he nct price alter deduction of input eredits a.9dy taken and in escalatjon payments
on to the purchascr. wherever applicable.
also any such benefit should be passed
ot Finance 1Directorate of Railway Board.
5.0 This issues with the concurrence

DA: As above.

w. Inod K. Iripatlu

kd "iDireetor le
we levder
Railw r B0ari
 ANNEXURE-A

PRICE VARIATION FORMULAE FOR VARIOUS TRACK FITTINGS

1.0 PV formula (Base year 2011-12)

SN Item description
P={(P/100x{10+{16.32x(A,/Ao)+7.70x(
1. All type of switches, CMS +
Corssings, Glued Joints, SEJ, Bi/Bo)+15.02 x(C,/Co) +0.96 x (D,/D6)
Improved SEJ and Derailing 1.1 below para
S0x (L/Lo)}] as per para
Switchess
2. All type of ERCs P=[(Po/100)x{10+27.48
XA1/Ao)+(12.72xB,/Bo) 1(24.80xC;/Co)+
l.2
+(8xF|/FO)} ] as per para
17x Li/Lo)
below

Ail typesof metal Liners, Fish P |P100x{15(23.2

Plates/Bolts/Plate Screws XA1/An)t10.76xB,/Bo)+(20.99xC/CG)
t(15 x L/Lo) + (15 x (F,/F%)}|as per para
1.3 below

All types of GRSP P [(P100x {20+{46xC;/Co)

+(14xl1/10)-(10xL1/Lo)+(10xl°I/F0)}] as

per para 1.4 below

All types of GFN Liners P-(Po/100x {20+(52xC1/C0}+(14xL1/L.0)|

below
+(14xF1/F0)} ] as per para 1.5
1.1 The PV formula as per WPI indices of base year 2011-12 is as under:

15.02 (C1/C0,
P [(PO/100) x {10+ {16.32 x (A1/A0) +7.70 x (B1/B0) +
0.96 x (D1/D0) + 50 x (L1/LO)}1
x

P1 = Escalated/de-escalated basic unit rate.

Where,
PO = Accepted Basic unit rate

Al = Wholesale price index for "Inputs in to Steel Making" as prevalent during

one month prior to the month of issue of Call letter for Inspection as per
Economic Advisor, Ministry of Industry website http:// eaindustry.nic.in
as per series 2011-12.
A0 Wholesale Price Index for "Inputs in to Steel Making" as prevalent during
the month just prcccding the month in which tender was opened, as per
Economic Advisor, Ministry ot Industry website http:// eaindustry.nic.in
as per series 2011-12

Bl = Wholesale price index for "Metallic Iron as prevalent during one month

to the month of issue

of Call letter for inspection as per Fconomic
prior
website httn: 2andustry.nic.in is e r series
Advisor. Ministry of !ndustry
011-12.
B - 'holesale rrice 'rde or "Metailc fr rvaien
nth in which t*r
vas openei. s er conomie
preceding
 Advisor, Ministry of Industry website http://
2011-12. eaindustry.nic.in as per strics

C- Wholesale price index for "Mild Steel

the timc of 10 days Semi Finished Steel as
-

"
at
prior to call of prevalent
as per Economic Advisor, inspection of ERCs (finished goods)
caindustry.nic.in Ministry of Industry website http://|
as per series 2011-12.
CO Wholesale price index for
"Mild Steel Semi
during the month just preceding the month Finished Stccl" as prevalent
in which tender was
ias per Economic Advisor, opencd,
Ministry of Industry website
caindustry.nic.in as per series 2011-12. http:
FI Wholesale Price Index for "Fuel & Power"
prevalent as
10 at the time of
days prior to call of inspection of ERCs
(finished goods)
Advisor, Ministry of Industry website http:// eaindustry.nic.in as Economie
as per
per series
2011-12.
FO Wholesale Price Index for
"Fuel & Power" as
prevalent during the monn
just preceding the month in which tender was opened, as per Fconomic
Advisor, Ministry of Industry website http:// eaindustry.nic.in as per serics
2011-12.
LI= All India consumer Price Index for Industrial workers as prevalent at the
time of 10 days prior to call of inspection of ERCs (finished goods) as per
Labour Bureau, Ministry of l abour website http:// labourbureau.nic.in.

Lo All India Consumcr Price Index for Industrial workers as prevalent during
the month just preceding the month in which tender was opened, as per
Labour Burcau, Ministry of Labour website http:// labourbureau.nic.in.

13 The PV formula as per 2011-12 WPI is as under:

PI [(PO/100) x {15+ (23.25 x Al/A0) +T0.76 x Bl/B0) +{20.99 x CICU)+(15
xLILO) -(15 xF1/FO)}]
Where,

P Escalated/de-cscalated basic unit rate.

PO Accepted Basic unit rate

in to Steel Making" as prevalent during the

A! Wholesale price index for "Inputs
month just preceding the month of issuc of call letter for inspection as per
of Industry vcbsite http:// eaindustrv nic.in as
Eeonomic Advisor, Ministry
per serics 2011-12.

in to Sleel Making"as prevalent during tthe

Wholesale Price Index for "lnputs
the montn in whicn tender was opencd. as per
month ust preccding
conomic Advisor, Ministry ol tndustry
webSite nitp:/ candustry.nic.in as

Der series 2011-1

letialle iron Tevalent during 'he nonth 'ust
hoicsale price index or

d : s t r y ne
C r . \!iri tr
1-12
BO Wholesale price index for "Metallic Iron" as
prevalent during
montnJu
preceding the month in which tender was opened, as per Economic Advisor
the

Ministry of Industry website http:ll eaindustry.nic.in as per series 201l-i

CI Wholesale price index for "Mild Steel Semi Finished Steel " as prevalent
during the month just preceding the month of issue of call letter for
inspection as per Economic Advisor, Ministry of Îndustry website http:/
caindustry.nic.in as per series 2011-12.
CO Wholesale price index for "Mild Steel Semi Finished Steel " as prevalent

during the month just preceding the month in which tender was opened, as
per Economic Advisor, Ministry of Industry website http:// eaindustry.nic.in
as per series 2011-12.

LI All lndia consumer Price Index for Industrial workers as prevalent during thne
month just preceding the month of issue of call letter for inspection as per
Labour Bureau, Ministry of Labour website http:// labourbureau.nic.in.
Lo A l l India Consumer Price Index for Industrial workers as prevalent durimg the
month just preceding the month in which tender was opened, as per Labour

Bureau, Ministry of Labour website http:// labourbureau.nic.in.

FI= Wholesale Price Index for "Fuel& Power" as prevalent during the month Just
precedingthe month of issue of call letter for inspection as per Economie
as per series
Advisor, Ministry of Industry website http:// eaindustry.nic.in
2011-12.
FO = Wholesale Price Index for "Fuel & Power" as prevalent during the month just
as per Economic
Adv1sor,
preceding the month in which tender was opened, 2011-12.
series
Ministry of Industry website http:// eaindustry.nic.in per
as

is under:
1.4 The PV formula as per WPI indices of base year 2011-12 as

P1 [(PO / 100) x {20+ (46 x C1/C0)+ (14 XTTT0)+ (10 x L1/LO) +(10 x FI/F0)}]
P1 Escalated/de-escalated price.
unit rate.
PO Accepted
circulated by Indian
CI Average Monthly Price
of Natural Rubber (RSS-4) as
the month just preceding the month of call
Rubber Board as prevalent during
by the agency.
of inspection of tinished goods
(RSS-4) as circulated by Indian
Rubber
C0 Average Monthly
Price of Natural the month in
the month just preceding
Rubber Board as prevalent during
which ternder was opened.

of Basic Chemicals" prevalent

during the month just
I = WPI for "Manufacture as per Economic Advisor, Ministry
of
the month of inspection
preceding http:/eaindustry.nic,in
as
per series 2011-12.
Industries web site
prevalent during the month just
"Manufacture of Basic Chemicals
10 WP! for the tender as per Econoinic
monthh of the date
of opening of
preceding the ntp:/eaindustry.nic. in as per
sile
series
Industrics web
Advisor. Ministry of
20!1-1