The ongoing conflict in the Middle East has triggered a major surge in the price of bitumen, a key raw material used in the construction and maintenance of roads, putting extra financial burden on contractors across the state.
As per the All Haryana PWD Contractors Association, the price of bitumen has increased from around Rs 40 per kg before the conflict to Rs 92 per kg at present. Apart from the steep price hike by more than double, contractors are also grappling with an acute shortage of the material, disrupting road construction and infrastructure projects across the state. Facing shortage of bitumen, the contractors also announced not to participate in the tender process from July 5.
Bitumen is a byproduct of crude oil and is essential for road construction. It is derived from specific grades of crude oil, much of which is sourced from the Gulf region and Iran, said Manoj Chahal, senior vice-president of the association, adding that the escalating tensions have disrupted global supply chains resulting in limited availability and increased costs of bitumen and other petroleum products.
“We are facing a severe shortage of bitumen, and the limited quantity available is being sold at exorbitant prices. We will not join any tender process from July 5,” he added.
The association has urged Chief Minister Nayab Singh Saini to extend the completion deadline for all ongoing projects till March 31, 2027, citing circumstances beyond the contractors’ control. It has also sought a special relief package of Rs 500 crore to offset rising input costs and project delays, besides demanding the release of nearly Rs 1,500 crore in pending payments for completed works.
Jai Bhagwan Jakhar, president of the association, said the crisis had severely impacted contractors across the state. “We are not even getting imported bitumen and refinery bitumen. Prices have already increased sharply within a short period, making it extremely difficult for contractors to execute works according to the original estimates. Road projects are facing disruptions, and unless immediate relief is provided, many contractors may suffer heavy financial losses," Jakhar said.
Due to shortage, around 450 projects related to projects have been halted by the contractors. “We have no option but to halt the projects,” he added.
He said contractors should not be penalised for delays caused by factors beyond their control and urged the government to extend project completion timelines.
Senior vice-president Chahal said contractors had submitted bids based on market rates prevailing at the time of tendering, but the sudden escalation in bitumen and fuel prices has rendered several projects financially unviable.
“The government should provide a special compensation package to address the impact of these extraordinary circumstances. The shortage of bitumen could also affect road maintenance and other critical infrastructure works,” he said.
