Road Construction in Ernakulam at a Standstill
Road infrastructure in Ernakulam district is facing a looming crisis as a sharp surge in material costs, especially bitumen, coupled with labour shortage and extreme weather, has brought construction activity to a virtual standstill. At the heart of the turmoil is the skyrocketing price of bitumen, the essential binder for asphalt roads, which has seen its cost inflated by nearly 40% in just a single month.
Pre-Monsoon Repairs Hit
Besides, pre-monsoon maintenance of roads in the city and outskirts has been hit, with authorities like Kochi corporation unable to float new tenders. Shakrutha Suresh Babu, corporation development standing committee chairperson, stated: "Repair and maintenance of roads should be carried out before the onset of monsoon. As the model code of conduct (MCC) is in force till May 4, we can't issue tenders till then. There is not enough time after that to complete the work. It will take at least one to two months to complete the tendering process." She added that the corporation could fully use funds received for implementing various projects, but no new funds have been received for projects of late. This may create problems for the local body to undertake new works. While most of the main city roads are in good shape, many interior roads like Deshabhimani Road, Ponekkara Road, Konthuruthy Road, Mullassery Canal Road, and AK Sheshadri Road, among others, are in bad condition.
P Rangadasa Prabu, president of the Ernakulam District Residents' Associations' Apex Council (Edraac), said: "Also, potholes have started to develop at key junctions like Vyttila (SA Road) and Goshree Junction, which need to be repaired before the onset of monsoon."
Bitumen Price Rise
Volatility in the Middle East has sent shockwaves through the local construction sector. Since bitumen is a derivative of crude oil, regional tensions have caused local prices to soar. As of mid-April, VG-30 grade bitumen is retailing at approximately Rs 97 per kg, while natural rubber modified bitumen (NRMB) has climbed to Rs 111 per kg.
Varghese Kannampally, president of the Kerala government contractors' association, warns that contractors may have to stop works soon. "There has been nearly a 40% jump in a month. When you combine this with the rising costs of tiles and electrical equipment, contractors are being pushed to the brink of financial ruin," he stated.
Government contractors cite that fixed-price contracts signed months ago are now unviable. Adding to the crisis, a significant portion of the migrant workforce has returned to their home states to exercise their franchise and is not expected back until June. The current heatwave has severely reduced the productivity of local labourers, making it dangerous to maintain full shifts on scorching asphalt sites.
Demand for Price Variation Clause
The contractors' association argues that the current procurement model is obsolete. They are demanding that the state government follow the lead of the National Highways Authority of India (NHAI) by introducing a price variation clause (PVC) in all agreements. Without a mechanism to adjust payments based on fluctuating material costs, contractors claim they will "bleed" financially, leading to an "undeclared shutdown" of essential projects.
Currently, with the MCC in place, decision-making at the administrative level has slowed, leaving contractors with little recourse but to petition the chief secretary for immediate compensation.
