VIJAYAWADA: The State government has permitted contractors to procure bitumen from private refineries and importers to prevent delays in road construction and repair works caused by irregular supplies from public sector oil companies.
Announcing the decision on Tuesday, Roads and Buildings (R&B) Minister BC Janardhan Reddy said the government had relaxed procurement norms following a request from the Builders Association of India (BAI), Andhra Pradesh chapter, and recommendations of an R&B Technical Committee.
Under the temporary arrangement, contractors can procure VG-10, VG-30 and VG-40 grades of bitumen from private suppliers until supplies from public sector undertakings are restored or March 31, 2027, whichever is earlier. The relaxation will apply to both ongoing projects and new road works.
The Minister, however, made it clear that contractors must comply with prescribed quality standards. Officials will conduct quality tests on the material, while contractors must submit purchase bills, quality certificates and import-related documents.
He clarified that the government would not bear any additional cost if private market prices were higher than those offered by public sector companies such as HPCL, BPCL and IOCL.
Payments would be restricted to the rates prevailing at these government-owned companies. The Minister said the State had sanctioned 1,790 road works covering 10,238 km at an estimated cost of Rs 3,014 crore during 2025-26.
While 626 works had been completed, another 1,164 were under execution. Most of these projects involved road repairs, and improvement.
Irregular supplies and shortages of bitumen had affected the progress of several projects, necessitating the relaxation, he said. The government had set a target of completing all sanctioned road works by the end of 2026, in accordance with Chief Minister N Chandrababu Naidu’s directions.
Janardhan Reddy warned contractors and officials against delaying projects on the grounds of fund or raw material shortages. Ensuring better roads, public safety and uninterrupted economic activity remained a priority of the government, he added.