Rs 1,000-Crore Civic Works Halt in Bengaluru as Construction Costs Soar

A sharp surge in the prices of key construction materials and raw material supply disruptions have brought nearly Rs 1,000 crore worth of road and infrastructure projects to a halt across Bengaluru's five civic corporations. Contractors have stopped or slowed down road asphalting, white-topping works, and pothole repairs, citing unsustainable cost escalations on projects awarded under previous tender rates.

The cost crisis stems from significant price increases in bitumen, cement, steel, crushed stones, and M-sand. Bitumen prices have nearly doubled, climbing from Rs 45,000 to Rs 92,000 per quintal following supply disruptions linked to the Israel-Iran conflict in West Asia. Similarly, manufactured sand (M-sand), which previously sold for Rs 250 to Rs 300 per tonne, is now quoted between Rs 450 and Rs 800 per tonne, while other grades of sand and jelly have also experienced steep price hikes.

In addition to soaring material costs, raw material supplies to Bengaluru have suffered severe bottlenecks. Key supply lines from Hosur and surrounding areas in neighbouring Tamil Nadu have been disrupted. Furthermore, crusher units supplying the city face tighter operational regulations following a fatal accident at the Madapatna quarry, combined with opposition from local residents.

As a result of these restrictions, crusher units that previously operated round the clock are now restricted to limited hours, drastically reducing the output of construction aggregates even as demand remains high. Increased transport charges, rising diesel prices, GST, and additional fees have further escalated retail material rates across the metropolitan area.

In response to the crisis, the Greater Bengaluru Civic Contractors’ Association has demanded an immediate revision of contract rates aligned with current market conditions, maintaining that contractors cannot absorb the inflated costs alone. Although the Greater Bengaluru Authority has sanctioned a temporary 'star rate' for road asphalting works, contractors state there is a lack of clarity regarding its implementation and are calling for revised rates to apply to existing tendered projects.

The widespread work stoppage has raised serious concerns regarding traffic management and the deterioration of road conditions across the city, as critical repair and surfacing works remain suspended pending a resolution between the contractors and civic authorities.