The government has assured highway construction companies that there will be adequate supply of key raw materials, including bitumen, cement and diesel, after contractors raised concerns about disruptions triggered by the ongoing geopolitical tensions.
According to sources, officials from the National Highways Authority of India (NHAI) held a meeting with representatives of the National Highways Builders Federation, where companies flagged operational challenges and sought clarity on raw material availability.
During the meeting, NHAI officials assured contractors that supplies of critical construction inputs would remain sufficient, even as logistics disruptions have begun affecting parts of the supply chain.
Contractors Seek Relief Provisions
Several construction firms have approached authorities seeking force majeure provisions in their contracts, citing disruptions to transportation and material supply.
Sources said truck movement has been affected in certain regions, while ship offloading operations have also faced delays, creating bottlenecks in the delivery of materials used in highway construction.
Companies have argued that such disruptions could impact project timelines and increase costs.
Bitumen Prices Under Watch
One of the major concerns raised by contractors relates to the recent rise in bitumen prices, a key input in road construction.
According to sources, bitumen prices have increased by around Rs 2,000 per tonne. The material typically trades at an average of about Rs 50,000 per tonne, and prices are revised on a monthly basis.
The next price revision is expected around the 15th of the month, which contractors are closely monitoring.
Impact of Diesel Prices
Industry representatives also flagged the potential impact of diesel prices on construction input costs. Prices of materials such as cement and steel are often linked to diesel costs, which influence transportation and manufacturing expenses.
However, there has been no diesel price hike so far, and the extent of any impact on cement and steel prices remains unclear.
Sources said many infrastructure contracts include provisions that allow certain forms of relief in the event of extraordinary disruptions, which contractors are now exploring as supply chain uncertainties continue.
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