Bitumen cost spike holds up PWD road repairs in Delhi

Rising bitumen prices due to global supply disruptions are hindering road projects in Delhi, prompting officials to consider contract revisions for contractors.

New Delhi

A senior PWD official, who did not wish to be named, said that India relies heavily on imported bitumen, and the disruptions have had a direct impact on procurement costs. (Representative photo)

A sharp rise in bitumen prices triggered by disruptions in global supply chains amid the ongoing conflict in West Asia has hit road construction and repair projects across Delhi, officials familiar with the matter said, citing steep increase in cost of materials, especially bitumen.

With several contractors already making representations over unviable costs to the Public Works Department (PWD), which is resurfacing and strengthening around 800 kilometres of roads, officials said they are looking at possible revision in compensation mechanisms to avoid large-scale disruption of civic works.

A senior PWD official, who did not wish to be named, said that India relies heavily on imported bitumen, and the disruptions have had a direct impact on procurement costs. “Bitumen prices have increased from around ₹40,000 per tonne to more than ₹70,000 per tonne within a short period. Contractors are finding it difficult to continue work at the rates fixed under existing agreements,” the official said.

Bitumen, a petroleum-derived material, is used as a binding agent in asphalt roads and is a key component in road construction and maintenance. It binds aggregates, such as crushed stone, sand and gravel, to create durable road surfaces capable of withstanding traffic pressure and weather changes.

PWD maintains a road network of around 1,404 kilometres across the Capital, of which 788 kilometres have been identified for redevelopment and strengthening works.

Officials said projects to revamp around 400 kilometres of roads have already been approved, but work on only about 60 kilometres could be completed before the surge in bitumen prices. Work on the remaining 340 kilometres was scheduled to be completed by March 31, but the pace of execution has slowed considerably. Of the pending stretches, nearly 100 kilometres require immediate repairs, officials said.

The work for strengthening of around 600 kilometres of additional roads is paused at the tendering stage as contractors are unwilling to take up projects, affecting pre-monsoon road repair efforts, officials said.

PWD minister Parvesh Verma said similar issues are also affecting road repair projects being undertaken by the Municipal Corporation of Delhi (MCD), which subsequently introduced contractual modifications to address the situation. “MCD had to make certain changes in its contracts, increasing rates, because road repair works were being affected. PWD is considering similar measures. Contractors have informed us that continuing work at existing rates is becoming increasingly difficult due to the steep rise in prices,” Verma said.

Despite the challenges, PWD officials said some of the department’s key infrastructure projects remain on track. Officials said the long-pending Barapullah elevated corridor project is nearing completion and is expected to open soon, as arrangements for bitumen have been made for the project.