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  #1  
Old January 8th, 2016, 10:18 AM
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Default ntpc price escalation formula

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  #2  
Old January 25th, 2016, 03:49 PM
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Default Re: ntpc price escalation formula

I was beginning to submit price escalation for supply part for one of the NTPC Project .
The contract escalation formuale is EC = EC1 -EC0
EC1= EC0{F+a x A1/A0 X f1 + b x B1/B0 X f2 + c x C1/C0 X f3 + ....+Lb X L1/L0 x fLb)

A,B,C shall be published price indices of corresponding major materials/items.Such indices shall necessarily be of the country of origin of goods .

My confusion is
1) Whether I should consider A- ferrous metal index ,B- Fuel and power, C- Non ferrous metal index ? or only considering A-All commodities index B- Ferrous metal index and no Fuel and power
2)Factors to be considered for A,B,C or I should consider A,B only ?If so wot are the factors .Purpose is for supply of electromechanical items price escalation for Water Treatment Plant Package .
Can anyone help please .
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