Rs 223 crore plan for 559 km roads stalled; HMPO demands rate revision, contracts only to plant owners
Rehan Qayoom Mir
Srinagar, Jun 10 :
Macadamisation works across Kashmir Valley are facing a major setback this season as rising bitumen prices and the ongoing boycott by Hot Mix Plant owners have disrupted road construction projects across the Valley.
The government had earlier approved a macadamisation plan worth around Rs 223 crore for nearly 559 kilometres of roads across Kashmir for the 2026-27 financial year. However, officials and contractors say soaring prices of bitumen, diesel and transportation have severely affected execution on the ground.
Sources within the Roads and Buildings (R&B) Department told the news agency—Kashmir News Observer (KNO) that a majority of tenders floated for blacktopping and resurfacing works in several districts either received no bids or witnessed very low participation due to the ongoing boycott by the Hot Mix Plant Owners Association (HMPO).
An Executive Engineer from the R&B Department said this year’s macadamisation programme has been “badly hit” due to the sharp rise in bitumen prices and the ongoing standoff with Hot Mix Plant owners.
“The impact is huge, and there are serious concerns over the timely completion of projects,” the official said.
Chief Engineer Central Kashmir, Sushil Kumar, however, said the tendering process for road works is “live and ongoing” and that the department is closely monitoring the situation.
HMPO President Bashir Ahmad Khan said the association was left with no option but to continue the boycott as the government had failed to address the “genuine and logical demands” of the industry.
“The cost of petroleum products and allied materials used in macadamisation has increased sharply over the years. Despite repeated requests, no concrete step has been taken to compensate for the increase in costs,” Khan said.
He said the association was also demanding that macadamisation contracts should only be awarded to registered contractors who own operational Hot Mix Plants.
“Macadamisation is a specialised work requiring proper infrastructure and technical expertise. If contractors without Hot Mix Plants quote lower rates than actual plant owners, it raises serious concerns about the quality and sustainability of works,” he said.
Khan added that restricting participation to registered Hot Mix Plant owners would ensure better quality control and accountability in road projects across Kashmir.
He further said that the association wants to work with the government, adding that their machinery is ready and waiting for official execution plans and designs.
Tariq Ahmad Baba, a contractor associated with macadamisation works, said uncertainty over revised rates and rising input costs had created major difficulties for contractors.
“Contractors are unable to manage projects under old rates as the prices of bitumen, diesel and transportation have increased sharply,” he said.
As per reports, bitumen prices across India have risen significantly in recent months due to supply disruptions linked to tensions in West Asia, affecting road construction projects in several states.
Speaking to KNO, Farooq Ahmad Dar, Co-Chairman of the Kashmir Economic Alliance (KEA), said the demand of Hot Mix Plant owners for revision of rates was genuine.
“The rates fixed earlier should be revised according to the present market situation. Otherwise, contractors and plant holders will face heavy losses,” Dar said.
He said despite allocations being released months ago for the 2026-27 financial year, macadamisation works were yet to begin in many areas.
“If work is delayed further, it will badly affect the public as Kashmir has limited working months for road construction,” he said.
Dar also said the rising prices of fuel and essential commodities were putting common people under financial stress. “A labourer earning Rs 500 to Rs 700 a day is struggling to run his household. The government needs to seriously focus on these issues,” he said.
Appealing to Hot Mix Plant owners, especially those operating in Shia-majority areas including Zadibal, Alamgari Bazaar and Lal Bazar, Dar urged them to defer the boycott for 10 days so damaged roads could be restored during the ongoing Muharram period.
He further said Kashmir’s economy had suffered heavily since 2019 due to shutdowns, COVID-19, decline in tourism and repeated disruptions in business activity. “Kashmir’s economy has crashed. Tourism, horticulture and trade sectors have suffered badly over the years,” he said.
Dar said Kashmir had suffered economic losses worth several lakh crores over the past seven years and added that sectors linked to tourism, horticulture and transport were still struggling to recover.
Meanwhile, if the deadlock continues, the short working season in Kashmir could badly impact road improvement targets fixed for the current financial year—(KNO)