Bhopal (Madhya Pradesh): The sharp increase in bitumen prices has begun affecting road construction and maintenance work across Madhya Pradesh, with contractors claiming that several projects under civic bodies, the National Highways Authority of India (NHAI), Public Works Department (PWD) and municipal corporations have either slowed down or come to a standstill due to mounting costs and irregular supply.
The crisis comes at a time when the state has road projects worth thousands of crore underway, including highway and urban road projects, four-laning work, bypasses and maintenance projects under the NHAI and PWD.
Contractors said advance payment has to be made for purchasing bitumen, which is mainly supplied to Madhya Pradesh from refineries in Gujarat. Supply disruptions coupled with higher freight costs have further strained project execution.
According to official NHAI data, bitumen, the key raw material used in asphalt roads, was earlier available at nearly Rs 42,000 per tonne. Prices have now risen to around Rs90,000 per tonne, almost doubling within a short period.
In Madhya Pradesh, state highway projects linked to stretches in Awadhpuri, Bhauri and Mandideep are facing delays. Madhya Pradesh Road Development Corporation (MPRDC) projects in Raisen, Sehore, Bareli, Shujalpur, Narmadapuram, Babai and Sohagpur have reported similar problems.
Road contractor Jaydev Chouhan said the existing escalation clauses are insufficient to cover current market prices, while expenses on diesel, kerosene, machinery and labour have also increased significantly.
In many locations, excavation, murum filling and rolling work have been completed, but bitumen surfacing has not started. This is the situation with almost every road project in Madhya Pradesh, because of which work has either halted or slowed down, Chouhan said.
In Bhopal, contractors claimed that several road repair and resurfacing projects in Dakshin-Paschim Assembly constituency, Govindpura, Ayodhya Bypass, Idgah Hills and internal colony roads have been affected. Patchwork has also slowed due to intense heat and shortage of material.The issue comes amid large-scale road infrastructure expansion in the state.
Quote
The cost of Bitumen has increased, but it will not have major impact on the work. Moreover the additional cost will be borne by the government.
Devansh Nuwal, Project Director, NHAI Ministry announces compensation mechanism
The Union Ministry of Road Transport and Highways has also acknowledged the surge in prices. In its circular dated Apr 17, 2026, the ministry stated that relief measures were being introduced to ensure uninterrupted construction and maintenance of National Highway projects due to the increase in prices of crude oil and petroleum products under the present global scenario.
The ministry further announced a special compensation mechanism for projects affected by the abnormal increase in bitumen prices between Apr 1 and June 30, 2026.
