The National Highways Authority of India (NHAI) assured highway builders on Friday that adequate supplies of fuel, bitumen, and other necessary inputs would be maintained despite concerns over potential shortages and rising prices. This announcement came during a meeting where builders expressed worries about the impact of the ongoing conflict in West Asia on project costs and toll collection for routes heavily reliant on port-bound traffic.

Concerns over project costs

During discussions with NHAI chairman Santosh Kumar Yadav, highway builders highlighted that the current geopolitical situation could significantly affect the financial aspects of their projects. They requested the NHAI to declare the situation as a force majeure event for highway initiatives, which would provide a cushion against any revenue shortfalls and potential extensions of concession periods.

NHAI’s assurance on supplies

Officials from the National Highway Builders Federation (NHBF) raised multiple concerns, particularly regarding an anticipated hike in prices of essential inputs that could slow down highway construction progress. Yadav confirmed that NHAI is in ongoing communication with the Indian Oil Corporation Limited (IOCL), which has assured sufficient supplies of both fuel and bitumen, without any major supply disruptions expected. He encouraged contractors to reach out to NHAI’s regional offices and field authorities if they experience any supply issues.

Increase in transportation costs

Highway developers noted rising transportation costs linked to increasing diesel prices and escalating material expenses. They proposed that NHAI shorten the price indexation lag from three months to one month, enabling the authority to better adjust to real-time market conditions and ensure contractors receive appropriate compensation.

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