Gulf Tensions Threaten Bitumen Supply, Slow India's Road Projects

28 Mar 2026 CW Team

Ind-Ra said bituminous works account for eight to twelve per cent of costs in National Highways Authority of India (NHAI) hybrid-annuity model (HAM) projects and that a 20 per cent increase in bitumen prices could compress road engineering, procurement and construction (EPC) margins by 150 to 250 basis points. Imports rose to around 40 per cent of demand in FY21–FY26 and more than 95 per cent come from Gulf suppliers.

The reliance on imported bitumen is stronger for state and regional works, which often lack procurement flexibility and supply buffers. Domestic bitumen output depends on refinery crude throughput, so even modest crude inflow disruptions can reduce availability. The February to June peak construction season raises vulnerability as demand typically surges and inventories run low.

Imported bitumen is generally 20 to 25 per cent cheaper than domestic alternatives, but that advantage could evaporate if shipping routes are disrupted or crude prices climb. Many state projects lack inflation-linked payment mechanisms and have limited contingency, increasing exposure to cost overruns and margin erosion and possibly leading to time extensions or re-tendering. By contrast, National Highways Authority of India hybrid-annuity model projects have contingency buffers, fixed-price EPC contracts and sponsor support, which can contain impacts.

Ind-Ra estimated that a sustained 20 per cent increase in bitumen prices would increase overall project costs by 1.5 to 2.5 per cent and cautioned that prolonged disruptions could cause site-level shortages, delay pavement works and hinder timely utilisation of state budgets. The report warned that rising import dependence and global uncertainties represent a growing structural risk for India's infrastructure sector, particularly for state and regional road projects.

India Ratings and Research (Ind-Ra) said Gulf geopolitical tensions threaten bitumen supply chains and could slow India's road construction pipeline, with state and regional projects most at risk. The agency argued that disruptions in shipping routes and higher crude prices could tighten supply and raise bitumen costs. Ind-Ra said bituminous works account for eight to twelve per cent of costs in National Highways Authority of India (NHAI) hybrid-annuity model (HAM) projects and that a 20 per cent increase in bitumen prices could compress road engineering, procurement and construction (EPC) margins by 150 to 250 basis points. Imports rose to around 40 per cent of demand in FY21–FY26 and more than 95 per cent come from Gulf suppliers. The reliance on imported bitumen is stronger for state and regional works, which often lack procurement flexibility and supply buffers. Domestic bitumen output depends on refinery crude throughput, so even modest crude inflow disruptions can reduce availability. The February to June peak construction season raises vulnerability as demand typically surges and inventories run low. Imported bitumen is generally 20 to 25 per cent cheaper than domestic alternatives, but that advantage could evaporate if shipping routes are disrupted or crude prices climb. Many state projects lack inflation-linked payment mechanisms and have limited contingency, increasing exposure to cost overruns and margin erosion and possibly leading to time extensions or re-tendering. By contrast, National Highways Authority of India hybrid-annuity model projects have contingency buffers, fixed-price EPC contracts and sponsor support, which can contain impacts. Ind-Ra estimated that a sustained 20 per cent increase in bitumen prices would increase overall project costs by 1.5 to 2.5 per cent and cautioned that prolonged disruptions could cause site-level shortages, delay pavement works and hinder timely utilisation of state budgets. The report warned that rising import dependence and global uncertainties represent a growing structural risk for India's infrastructure sector, particularly for state and regional road projects.

Infrastructure Transport

01 Jun 2026

MMRDA advances 250 m on Orange Gate–Marine Drive tunnel

The Mumbai Metropolitan Region Development Authority (MMRDA) has completed 250 m of underground tunnelling for the Orange Gate–Marine Drive Urban Road Tunnel using India’s largest slurry shield tunnel boring machine (TBM) deployed for an urban road project.The project involves twin tunnels extending over 7 km beneath critical transport corridors, including Central Railway, Western Railway and Metro Line 3. The work requires high-precision engineering to navigate densely developed urban infrastructure.Once completed, the tunnel is expected to reduce travel time between Orange Gate and Marin..

Infrastructure Urban

01 Jun 2026

Hindustan Zinc Pays Rs 188.46 Billion in FY26

Hindustan Zinc contributed Rs 188.46 billion to the public exchequer in FY 2025-26, according to its 9th Tax Transparency Report. The contribution, equivalent to 46 per cent of the company’s revenue, included direct and indirect taxes, government royalties, dividends to the Government of India, withholding taxes and other statutory levies.The company’s five-year cumulative contribution to the exchequer stood at Rs 915.72 billion. In FY26, Hindustan Zinc reported revenue of Rs 408.44 billion, EBITDA of Rs 221.62 billion and profit after tax of Rs 138.32 billion. It also achieved its highest..

Infrastructure Urban

01 Jun 2026

World of Concrete India 2026 Opens in Mumbai

Informa Markets in India will host the 12th edition of World of Concrete India 2026 from 3–5 June 2026 at the Bombay Exhibition Centre, Mumbai. The specialised B2B exhibition will bring together manufacturers, suppliers, contractors, developers, architects, consultants, infrastructure companies, project leaders and government stakeholders.The event is expected to feature over 350 brands and more than 18,000 trade professionals. It will cover concrete and cement, dry mortar, precast technologies, formwork, construction chemicals, industrial and commercial flooring, scaffolding, safety solutio..