West Asia conflict pushes up bitumen prices, slows Delhi road works

The official said bitumen prices have increased by 40-50%, making it economically unviable for contractors to execute projects at the rates at which contracts were awarded

A sharp rise in bitumen prices triggered by the conflict in West Asia has slowed Delhi’s wider road relaying programme, even as senior government officials have shifted focus largely to cement-concrete road networks, officials who participated in a review meeting on the matter last week said.

There has been an exorbitant increase in bitumen prices compared to the awarded rates, which is stalling the work, (HT Archive)

The official said bitumen prices have increased by 40-50%, making it economically unviable for contractors to execute projects at the rates at which contracts were awarded.

Road-owning agencies have been tasked with redeveloping 3,379 km of roads by 2026 under a framework set out by the Commission for Air Quality Management. Of this, 70% of the work – or 2,361 km – is to be completed by October 2026. Only 697 km (20.62%) have been redeveloped till June 1, largely cement-concrete roads.

“Concrete work is not impacted during the monsoon, but bitumen work gets curtailed during periods of heavy rain,” the official added.

“These works are aimed at reducing dust generation. They involve end-to-end paving of footpaths, complete greening of central verges, and road repairs. During the meeting, we flagged that geopolitical developments in West Asia have severely impacted the availability of bitumen and led to a sharp rise in prices. There has been an exorbitant increase in bitumen prices compared to the awarded rates, which is stalling the work,” a senior government official said.

To be sure, the US and Iran announced on Monday that they have reached a preliminary agreement to end the war, lifting blockades in the Strait of Hormuz and the Gulf of Oman. The official cited above added that with the latest development, they hope the truce holds and bitumen prices normalise soon.

Another government official said that of the 3,379 km of roads identified for redevelopment, 1,148 km require bitumen surfacing while 2,231 km are to be converted into concrete roads. Bitumen – a black, viscous petroleum-based substance – acts as the foundational glue that holds asphalt together for road construction.

“We have already awarded tenders covering 3,229 km of the road network, and work orders have been issued for 1,736 km. Around 700 km of roads had been redeveloped till June 1, and we are hoping to accelerate the pace of work in the coming months,” the official said.

Meanwhile, MCD has roped in CSIR-Central Road Research Institute (CSIR-CRRI) to study its road network as part of a planned overhaul. The two agencies last week signed a memorandum of agreement (MoA) to strengthen estimate preparation, road construction, quality supervision, procurement of Eco Fix material and capacity-building of engineers and staff.

Under the agreement, CSIR-CRRI will provide technical support for the functional and structural evaluation of roads. The scope includes pavement-condition assessments to recommend suitable re-carpeting layers, third-party quality audits of road works, and training programmes on pavement construction, maintenance and evaluation.

“The bipartite technology management agreement focuses on the utilisation and implementation of Eco Fix technology, an iron and steel slag aggregate-based ready-to-use pothole repair mix. The material will be used for the rapid repair of distressed and damaged roads,” the official added.