Bitumen Shortage, Price Rise Hit Jharkhand Infrastructure Projects

Jharkhandinc Bureau

RANCHI, March 26: A shortage of bitumen and a sharp rise in its price have begun to affect road and infrastructure projects in Jharkhand, with industry bodies warning of delays and rising execution costs.

At a joint press conference in Ranchi on Wednesday, the Federation of Jharkhand Chamber of Commerce and Industries (FJCCI) and the Builders Association of India (BAI), Jharkhand chapter, said the supply disruption had placed contractors under increasing pressure.

FJCCI president Aditya Malhotra said the price of bitumen has risen from around Rs 40,000 per tonne to nearly Rs 54,000 per tonne in recent months. He said the increase, combined with erratic supply, has made it difficult for contractors to execute projects under previously approved rates.

Industry representatives said Jharkhand remains largely dependent on supplies from Haldia due to the absence of adequate bulk storage and distribution infrastructure within the state.

At present, Bokaro is the only available container-based supply point in Jharkhand, but availability there has also remained inconsistent, they said.

As a result, contractors are being forced to source material from outside the state, increasing logistics costs and slowing work at project sites.

Malhotra said the rise in commercial diesel prices has further increased transportation and project costs, adding to the pressure on contractors.

Builders Association of India, Jharkhand chapter chairman Raviraj Agrawal said contractors have not been receiving adequate bitumen supplies from the Bokaro depots of public sector oil companies for several months, while supply from Haldia has also remained irregular.

He said the shortage has affected road construction activity across the state, with some projects slowing due to non-availability of material during an active execution period.

Industry bodies said the situation is especially difficult for small and medium contractors working on limited margins, particularly those engaged in road and rural infrastructure projects.

The two organisations demanded that public sector oil companies such as Indian Oil Corporation Ltd (IOCL), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) establish bulk bitumen depots in Jharkhand to reduce dependence on Haldia and stabilise supply.

They also urged the government to consider mechanisms for maintaining reserve stock within the state and addressing price volatility affecting project viability.