New Delhi: Construction and repair of roads across the city have been severely impacted by a sharp rise in bitumen prices, prompting the Public Works Department (PWD) to consider revising agreements with contractors as they struggle with escalating costs.
The crisis emerged after the conflict in West Asia disrupted major shipping routes passing through the Strait of Hormuz, a critical channel for petroleum-based imports. Since India imports significant quantities of bitumen, primarily from the UAE, Iraq, and Iran, this has triggered a steep escalation in bitumen prices over the past two months: from around Rs 40,000 per tonne to over Rs 70,000.
“Contractors are finding it difficult to continue under the existing contract rates,” a senior PWD official stated.
The department maintains a total road network of 1,404 km. Of this, nearly 616 km is in good condition, while 788 km was identified for redevelopment and strengthening. Approximately 400 km of road was approved for strengthening and repair; work on only about 60 km had been completed when the crisis hit. The remaining 340 km was to be completed by March 31. Of this, at least 100 km is in need of immediate repair, while the rest of the stretches also require relaying. Work on this 100 km has been hampered by the spike in bitumen prices, slowing down ongoing repair and resurfacing projects.
Bitumen, derived from crude oil, is primarily used as a binder in road construction as it holds together materials like sand, gravel, and crushed stone to form asphalt. Waterproof, adhesive, and flexible, bitumen helps roads withstand traffic load and harsh weather conditions.
The department is now examining the possibility of revising compensation mechanisms and contract conditions to prevent large-scale disruption of projects. Several contractors have already expressed unwillingness to continue work unless rates are revised to reflect the current market situation, officials said.
PWD minister Parvesh Verma noted that the Municipal Corporation of Delhi (MCD) faced similar difficulties regarding road repair projects and introduced certain contractual adjustments to address the issue. “PWD is also considering similar measures,” Verma said.
Although the slowdown in road works is expected to affect resurfacing projects planned before the monsoon, PWD remains optimistic about completing some of its major infrastructure projects on schedule. Officials said the Barapullah elevated corridor project, one of Delhi’s key transport infrastructure works, is nearing completion. “We set a June deadline for it. There could be a delay of a few days, but the project is expected to be completed more or less on time,” another senior PWD official said.
