Vikramaditya: Bitumen price hike hits road construction activities
Shimla, May 17 -- Spike in prices of bitumen had adversely hit road repair and tarring work across Himachal Pradesh posing challenge to the public works department (PWD) as contractors are stopping work due to fears of mounting losses.
According to the department, the price of bitumen- a petroleum byproduct essential for road construction - has surged to nearly Rs 82 per kg-almost double the price of Rs 42 per kg rate recorded last year. This sudden spike has widened the gap between approved project costs and actual expenses, making several road works financially unviable for contractors.
PWD minister Vikramaditya Singh on Saturday said, "Bitumen is one of the most economically viable materials used in road construction. However, the spike in prices amid the West Asia conflict has severely affected road construction activities during the peak tarring season in the state".
Traditionally, summer marks a busy period for road tarring and maintenance across the state. This year, however, rising raw material prices have severely slowed the pace of repair and resurfacing works. Contractors are reluctant to take up new projects, citing uncertainty and the risk of losses if prices continue to climb.
"Our target is to complete around 500 to 600 km of tarring this season, but contractors are not working because bitumen prices have doubled," said Vikramaditya, while adding, "The surge in cost has been compounded by a sharp increase in logistics expenses, with increase in diesel prices which has pushed transportation costs for raw materials, further burdening contractors. The issue was not limited to Himachal Pradesh but was being witnessed in several states across the country".
The poor condition of roads is a concern, especially after months of stalled maintenance work. In many rural parts of the state, roads have deteriorated due to delayed maintenance, leading to potholes, broken surfaces and difficult travel conditions. Several roads within Shimla are riddled with potholes.
Vikramaditya said the issue has been discussed with chief minister Sukhvinder Singh Sukhu. He added that the matter of rising bitumen prices has also been taken up with the central government. He added that a proposal has been sent to the Centre seeking special measures to regulate bitumen prices and provide relief to states facing difficulties in executing road projects.
The minister added that inflation and international uncertainties were increasing pressure on imports and construction materials such as cement, steel and aluminium. He urged the central government to intervene and take immediate corrective measures.
He said the recent rise in petrol and diesel prices has triggered inflationary pressure across various sectors in the state.
He said the increase in fuel prices has directly impacted transportation costs and essential commodities, including vegetables, milk and edible oils. He added that the tourism and hospitality sector in Himachal, particularly hotel owners, dhaba operators and restaurant businesses in tourist destinations such as Shimla, Dharamshala and Manali, was already under pressure due to rising commercial LPG prices.
"The CM had written to the Prime Minister seeking intervention on issues related to inflation, fuel prices and rising input costs affecting the state," he said ....
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