Bengaluru Contractors Halt Rs 1,000 Crore Civic Works Over Bitumen Price Surge

Contractors across Bengaluru have halted civic and infrastructure projects valued at over Rs 1,000 crore following a steep surge in the cost of bitumen and other key construction materials. The strike threatens to significantly hamper ongoing road maintenance work, including asphalting, pothole filling, and white-topping projects across the city.

The Greater Bengaluru City Corporations Contractors’ Association reported that the price of bitumen has more than doubled, climbing from Rs 45,000 a quintal to Rs 92,000 a quintal. Association leaders attributed the sharp price spike to the ongoing war between the United States and Iran. Prices for other essential materials, such as steel, cement, and gravel, have also risen sharply in recent months.

Association president GM Nanda Kumar said that contractors are suffering heavy financial losses by continuing work at the rates agreed upon when the original tenders were awarded. He urged the state government to step in and revise project costs according to prevailing market rates so that contractors do not have to absorb the full financial burden alone.

The association has specifically demanded that the government implement a "star rate" mechanism for projects that have already been tendered, rather than applying it exclusively to new work. While the Greater Bengaluru Authority (GBA) had previously ordered star rates for asphalting work for a three-month period, the association noted that GBA officials currently lack clarity on how to properly implement the mechanism for ongoing projects.

A delegation representing the contractors recently met with Greater Bengaluru Development Minister Krishna Byre Gowda to explain the situation and submit their demands. According to Kumar, Minister Gowda assured the contractors that he would review their grievances and look into their demands.

Contractors warned that if the pricing issue remains unresolved, the delay in resuming civic works could lead to deteriorating road infrastructure and worsening pothole conditions across Bengaluru.