MARGAO
Road construction activities across Goa are on the brink of disruption as a sharp rise in bitumen prices -- triggered by the ongoing conflict in West Asia -- has put financial pressure on contractors.
The sudden escalation in costs has prompted contractors to appeal to the State government for an urgent revision of tender rates, warning that failure to act could lead to a complete halt of road works. The contractors have claimed that the hot mixing plants have shut shop in view of the emerging situation.
The issue has gained urgency, with the State government convening a high-level meeting on Monday. The meeting is expected to be attended by Chief Minister Pramod Sawant, PWD Minister Digambar Kamat, senior Public Works Department officials, and representatives of road contractors to assess the situation and explore possible solutions.
Speaking to media, Road Contractors’ Association president Dipak Desai highlighted the severity of the crisis. He stated that bitumen prices have surged by nearly 50 per cent since the outbreak of the conflict in West Asia.
“Before the war, a tonne of bitumen cost around Rs 51,000. Now, it has shot up to approximately Rs 83,000,” Desai said. “This drastic increase has placed contractors in an extremely difficult position. For every 20–22 tonne tanker load of bitumen sourced from Mangalore, we are forced to incur an additional expense of nearly Rs 8 lakh.”
He further explained that the cost of a single 20-22 tonne tanker has risen from about Rs 12 lakh to Rs 18 lakh, making ongoing projects financially unviable under existing contract rates.
Desai warned that unless the government intervenes swiftly, contractors may be left with no option but to suspend work. “We brought this issue to the government’s attention a fortnight ago and requested a revision of rates. Unfortunately, there has been no positive response so far. We are now pinning our hopes on the upcoming meeting,” he said.
The financial strain has already begun to impact operations on the ground. According to Desai, several contractors have either slowed down or completely halted their projects. In some cases, hot-mix plants have shut due to the unsustainable rise in input costs.
They argued that without immediate relief measures, including revising tender rates, road hot-mixing works could face significant delays. The outcome of Monday’s meeting is therefore being closely watched, as it is expected to determine whether road works can continue uninterrupted or grind to a standstill.
