Highway projects get three more months of bitumen, diesel cost escalation cover amid West Asia crisis

The Indian government has extended cost compensation for bitumen and diesel price increases to highway projects. This move aims to mitigate the impact of rising fuel costs on construction. The extension will provide relief to projects executed until December 31, 2026, as long as the bid due date was set before April 1, 2026. This decision is significant for the economy, as it will help maintain the pace of highway construction and prevent project delays.

Why it matters

The ministry of road transport and highways is extending the cost compensation for bitumen and diesel, which will help highway project contractors manage their costs amid the West Asia crisis. This extension could lead to increased investment and activity in

Market impact

Markets & countries in focus

Transmission channels

Likely winners & losers

Explore the intelligence

MeridStreet does not reproduce source articles. The summary and analysis above are generated by MeridStreet from public headlines and its own market model; the original reporting belongs to Economic Times. For information only — not financial advice.