New Delhi, Apr 27: With rising steel prices threatening timely completion of several ongoing works, the railways may opt for revising the price variation clause in future projects to protect contractors from market upheavals.

"We are trying to find a solution to tide over the situation arising out of the rising steel prices as many of our ongoing projects have been adversely affected," said a senior railway ministry official.

Projects involving construction of bridges and buildings and manufacturing of coaches are most affected due to the steep hike in the price of input material, particularly steel.

"While we may revise the price variation clause for our future contracts to insulate contractors from the vagaries of the market, some steps need to be taken to save the ongoing projects from being forced to close down," said the official.

Though every contract has a price variation clause, it can absorb only 10 to 15 percent price rise in the market.

"Since the cost of the steel has risen upto 45 percent over the accepted rates, the provision in the existing clause does not compensate the contractors fully," said the official.

"So we are mulling over a proposal to revise the clause for our future contracts taking into account the actual price variation so that our work does not suffer due to abrupt market fluctuation," said the official.

He said all zonal offices and construction organizations have been told to come out with suggestions to tide over the crisis. Railways run the risk of a major setback in timely completion of several ongoing projects due to the cost escalation.