Highway projects get three more months of bitumen, diesel cost escalation cover amid West Asia crisis
The ministry of road transport and highways is extending the cost compensation for bitumen and diesel. This extension will apply to projects executed until December 31, 2026. Work carried out will only qualify if the bid due date was set before April 1, 2026. The compensation aims to address the impact of rising diesel prices on highway construction.
New Delhi: The Indian Ministry of Road Transport and Highways has extended a compensation scheme for bitumen and diesel costs used in major highway projects for an additional three months. This move comes amid ongoing price hikes in West Asia, which have led to persistently high fuel prices. The extension will run from October 1 to December 31, 2026.
The scheme applies to highways built using the engineering, procurement and construction (EPC) model, as well as hybrid annuity models and performance-based maintenance contracts. The ministry's decision is based on the current higher prices of bitumen, which prompted the extension of the compensation mechanism until December 31, 2026.
The extension will only cover projects that received bids before April 1, 2026, and work that began from April 15 to December 31, 2026. The ministry had previously introduced a price adjustment mechanism to counter the effects of rising diesel prices on highway construction and maintain the smooth operation of national highway projects.
Written by urgent.news from The Economic Times - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
