Bitumen prices in Haryana have more than doubled due to the ongoing conflict in the Middle East, rising from approximately Rs 40 per kilogram before the conflict to Rs 92 per kilogram currently, according to the All Haryana PWD Contractors Association. This steep increase, coupled with an acute shortage of the material, is disrupting road construction and infrastructure projects across the state.
Contractors halt tender participation
Facing severe shortages, contractors have announced they will not participate in any tender process starting July 5. Manoj Chahal, senior vice-president of the association, explained that bitumen is a byproduct of crude oil derived from specific grades sourced mainly from the Gulf region and Iran. The escalating tensions have disrupted global supply chains, leading to limited availability and soaring 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,” Chahal said.
Demand for relief and deadline extension
The association has urged Chief Minister Nayab Singh Saini to extend the completion deadline for all ongoing projects until March 31, 2027, citing circumstances beyond contractors' control. They have also sought a special relief package of Rs 500 crore to offset rising input costs and project delays, and demanded the release of nearly Rs 1,500 crore in pending payments for completed works.
Jai Bhagwan Jakhar, president of the association, highlighted the severe impact on contractors. “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.
Approximately 450 projects halted
Due to the shortage, around 450 projects have been halted by contractors. “We have no option but to halt the projects,” Jakhar added. He emphasized that contractors should not be penalized for delays caused by factors beyond their control and urged the government to extend project completion timelines.
Senior vice-president Chahal noted that contractors had submitted bids based on market rates 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.
