Slug: Road work stalled
BENGALURU
Road development across Bengaluru has taken a major hit as revised bitumen rates by the Public Works Department (PWD) fail to match soaring market prices, forcing contractors to halt work on a large scale.
PWD revised bitumen rates earlier this month after prices breached the 10% variation threshold. However, contractors say the updated rates remain significantly lower than actual market rates, making projects financially unviable. As a result, officials from the Greater Bengaluru Authority (GBA) estimate that over 90% of asphalting works in the city have come to a standstill.
Contractors point to a sharp spike in bitumen prices—from around ₹45,000 per tonne earlier to nearly ₹80,000 per tonne now—driven by supply disruptions from major refining hubs such as Mangaluru and Maharashtra. They argue that even the revised PWD rates do not reflect this steep increase.
GM Nandakumar, President of the Greater Bengaluru City Corporation Contractors’ Association, questioned the feasibility of continuing work under current rates, stating that contractors are incurring heavy losses. He added that work would resume only after the government approves a “star rate” model, which allows payments based on prevailing market prices.
The contractors’ association has submitted a representation to the GBA Commissioner, seeking immediate release of differential payments under the star rate mechanism. It has also invoked the force majeure clause under Karnataka’s public procurement framework, citing global disruptions, including the ongoing Iran-America conflict, as a major factor behind the unprecedented rise in input costs.
Association treasurer VH Rangaswamy explained that a one-kilometre bitumen concrete road requires about 25 tonnes of material, making cost escalation a critical concern. Even ongoing projects, he said, have become financially unsustainable.
While officials maintain that revised rates have been communicated and contractors have been asked to proceed, they acknowledge the deadlock. Authorities say efforts are underway to resolve the issue, after which stalled road works across Bengaluru are expected to resume.