Rise in bitumen cost fuelled by tension in Gulf creates hurdles for roadworks in Ernakulam

Kochi: Road infrastructure in Ernakulam district is facing a looming crisis as a sharp surge in material costs, especially bitumen, coupled with labour shortage and extreme weather, has brought construction activity to a virtual standstill. At the heart of the turmoil is the skyrocketing price of bitumen, the essential binder for asphalt roads, which has seen its cost inflated by nearly 40% in just a single month.Besides, pre-monsoon maintenance of roads in city and outskirts has been hit, with authorities like Kochi corporation unable to float new tenders."Repair and maintenance of roads should be carried out before the onset of monsoon. As model code of conduct (MCC) is in force till May 4, we can't issue tenders till then. There is not enough time after that to complete the work. It will take at least one to two months to complete tendering process," said corporation development standing committee chairperson Shakrutha Suresh Babu. "Corporation could fully use funds received for implementing various projects. However, we have received no new funds for projects of late," she added. This may create problems for local body to undertake new works.While most of the main city roads are in good shape, many interior roads like Deshabhimani Road, Ponekkara Road, Konthuruthy Road, Mullassery Canal Road and AK Sheshadri Road, among others, are in bad condition."Also, potholes have started to develop at key junctions like Vyttila (SA Road) and Goshree Junction, which need to be repaired before the onset of monsoon," said Ernakulam District Residents' Associations' Apex Council (Edraac) president P Rangadasa Prabu.Bitumen price riseVolatility in Middle East has sent shockwaves through local construction sector. Since bitumen is a derivative of crude oil, regional tensions have caused local prices to soar. As of mid-April, VG-30 grade bitumen is retailing at approximately Rs 97 per kg, while natural rubber modified bitumen (NRMB) has climbed to Rs 111 per kg.Kerala govt contractors' association president Varghese Kannampally warns that contractors may have to stop works soon. "There has been nearly a 40% jump in a month. When you combine this with the rising costs of tiles and electrical equipment, contractors are being pushed to the brink of financial ruin," he stated.Govt contractors cite that fixed-price contracts signed months ago are now unviable. Adding to the crisis, a significant portion of migrant workforce has returned to their home states to exercise their franchise and is not expected back until June. Current heatwave has severely reduced productivity of local labourers, making it dangerous to maintain full shifts on scorching asphalt sites.Contractors' association argues that the current procurement model is obsolete. They are demanding that state govt follow the lead of National Highways Authority of India (NHAI) by introducing a price variation clause (PVC) in all agreements. Without a mechanism to adjust payments based on fluctuating material costs, contractors claim they will "bleed" financially, leading to an "undeclared shutdown" of essential projects.Currently, with MCC in place, decision-making at administrative level has slowed, leaving contractors with little recourse but to petition chief secretary for immediate compensation.
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