India’s road construction
sector is facing pressure from two sides. On one side is the West Asia crisis, which has pushed up the cost of oil-linked inputs such as bitumen, diesel and logistics.
On the other is the persistent problem of negative bidding, where contractors are quoting sharply below project estimates to secure work.
Together, these forces are creating a serious risk for project viability, execution quality and contractor survival.
“What this has done is create a 360° attack,” said Pratap Padode, Founder, First Construction Council, speaking at the RAHSTA Roundtable. “Materials, equipment, labour, capital… everything is being affected simultaneously. Our industry already works on very thin margins and this has added another layer of pressure.”