A sharp rise in bitumen prices following supply disruptions linked to the conflict in West Asia has increased the municipal corporation’s road construction and repair costs by nearly 50%, adding to the financial burden on the cash-strapped civic body.The development comes at a time when the MC is already grappling with delays in the release of funds for ongoing development works. (HT Photo)Municipal officials said the price of bitumen, a key road construction material, has risen from around ₹50 per kg to nearly ₹75 per kg, substantially escalating the cost of all ongoing and upcoming road projects.Superintendent engineer (buildings and roads) Sham Lal Gupta said every project involving bitumen would be affected by the price escalation. “The increase in bitumen prices will certainly push up project costs across the city,” he said.Under existing contract conditions, the MC is required to compensate contractors for increases in the prices of essential construction materials if the escalation occurs within six months of the issuance of a work order, further increasing the civic body’s expenditure.The development comes at a time when the MC is already grappling with delays in the release of funds for ongoing development works. Although the finance department sanctioned ₹56 crore in April, officials said only the first tranche of ₹13 crore was released in late May after considerable delay, stalling projects such as the reconstruction of Gill Road and blacktopping work on Jagraon Bridge for more than a month.Officials said contractors have since submitted fresh bills worth around ₹8 crore, but payments are pending as the civic body awaits further fund releases.The shortage of bitumen had earlier delayed blacktopping of roads dug up under the 24x7 surface water supply project. While excavation was completed in several areas in January, resurfacing work could begin only in May because of limited availability of the material.
Ludhiana: Bitumen price hike raises MC road project costs by 50%, rates climb from ₹50 to ₹75 per kg
Superintendent engineer (buildings and roads) Sham Lal Gupta said every project involving bitumen would be affected by the price escalation. “The increase in bitumen prices will certainly push up project costs across the city,” he said







