NHAI promises uninterrupted supply of fuel, bitumen amid rising cost concerns

NEW DELHI: The National Highways Authority of India (NHAI) on Friday assured road builders that adequate supply of fuel, bitumen and other essential inputs will be maintained amid concerns over a possible fall in bitumen supply and rise in fuel prices.Expressway builders, in a meeting with NHAI chairman Santosh Kumar Yadav, pointed out that the prolonged conflict in West Asia could affect project costs and even tolls on stretches where port traffic has a higher share. They also urged highway authorities to declare the current situation as a force majeure event for highway projects to help them prevent revenue shortfall and concession period extension.Officials said the National Highway Builders Federation (NHBF) has raised several issues, including possible increase in basic input prices that could affect the speed of highway construction.“The NHAI chairman said that they are in continuous coordination with IOCL, which has confirmed that fuel and bitumen stocks are adequate and no major supply disruption is expected. He advised contractors to immediately contact the NHAI regional office and field authorities in case of supply disruption,” said a person who participated in the virtual meeting.Yadav assured the developers that NHAI will coordinate with the local administration to ensure uninterrupted supply of materials.Highway developers said they expect transport costs to increase due to rising diesel prices, while rising raw material costs are expected to lead to higher transport charges. They also recommended that NHAI shorten the price indexation lag from three months to one month to better reflect real-time market conditions and prevent under-compensation of contractors.