KOCHI: Annual maintenance works in most of the local bodies in the state have been slowed down or stopped due to escalating bitumen prices. More than 50 per cent of the total annual allocation of civic body’s own funds and Plan funds is earmarked for roadworks.
The Government Contractors Association had recently submitted a memorandum to works minister and additional chief secretary seeking immediate measures to rein in the escalating bitumen price.
The increasing bitumen price has hit maintenance works of roads damaged in floods especially in districts like Ernakulam.
“A barrel of bitumen which was priced at Rs 5600 earlier is now selling at Rs 7645. With a price rise of more than Rs 2000, contractors are unable to afford the bitumen based works,” said K.D. George, state general secretary of the Association.
The price of VG (viscosity grade)-30 bitumen, which is mainly used for road works in local bodies, has increased from Rs 34 per kg to Rs 49.50.
More than 60 per cent of the works undertaken in civic bodies are bitumen-based, and they are clueless on how to provide additional amount than estimate rates to compensate for the raw material price hike.
If the local bodies insist contractors to finish works at the estimated rate, it will affect quality and durability of roads. In many, contractors are not participating in tender procedures, and even those works awarded have not been started.
Meanwhile, based on the contractors’ association's demand, the public works and local self-government departments have agreed to revise the estimate-rate for new projects, he added.
