From Financialexpress · FE Bureau · · 1m 10s
Fuel and bitumen cost relief extended for highway contractors
MoRTH extends diesel and bitumen price compensation until December 31 to support highway projects hit by global oil price spikes.
In brief
MoRTH extends diesel and bitumen price compensation until December 31 to support highway projects hit by global oil price spikes. The Indian government extended cost escalation compensation for highway contractors through December 31, 2026, to offset elevated diesel and bitumen prices caused by West Asia conflict…
MoRTH extends relief measures
The Ministry of Road Transport and Highways extended bulk diesel and bitumen price escalation compensation until December 31, 2026.
Price escalations impact
Bulk diesel prices rose from Rs 87.67 to Rs 153.57 per litre, while bitumen prices increased from Rs 48,900 to Rs 84,120 per tonne.
Relief covers specific projects
The compensation applies to highway projects with bids due before April 1, 2026, and work executed between October 1, 2025, and December 31, 2026.
Mechanism details
The bitumen mechanism covers projects under EPC, hybrid annuity model, and performance-based maintenance contracts with monthly payments instead of quarterly.
Purpose of relief
The extension aims to prevent cost pressures from disrupting national highway construction and maintenance projects affected by elevated global oil prices.
The key point
The Indian government extended cost escalation compensation for highway contractors through December 31, 2026, to offset elevated diesel and bitumen prices caused by West Asia conflict.
