NHAI promises uninterrupted fuel, bitumen supply amid rising cost concerns | India News
New Delhi: The National Highways Authority of India (NHAI) on Friday assured highway builders that adequate supply of fuel, bitumen and other essential inputs will be maintained amid concerns over dwindling availability of bitumen and rising fuel prices.Highway builders, in a meeting with NHAI chairman Santosh Kumar Yadav, flagged that the lingering conflict in West Asia could affect project costs and even toll collection on stretches that receive a high share of port-bound traffic. They also urged the highway authorities to declare the prevailing situation as a strong case for highway projects to help them with revenue shortfall and extension of concession period.Officials said the National Highway Builders Federation (NHBF) has identified a number of issues, including a possible rise in prices of essential inputs, that could affect the pace of highway construction.“The NHAI chairman said that they are in constant coordination with IOCL, which has ensured adequate stock availability of fuel and bitumen, no major supply disruption is expected. He advised contractors to immediately contact NHAI regional office and field authorities in case of supply disruption,” said a person who attended the virtual meeting.Yadav assured developers that NHAI will coordinate with local administrative authorities to ensure uninterrupted availability of material.Highway developers said they expected an increase in transport costs on the back of diesel price hikes and rising input material costs are expected to drive up transport costs. They suggested NHAI to reduce the price indexation interval from three months to one month to better reflect real-time market conditions and prevent undercompensation of contractors.
